Scott Nital P., a director at European Wax Center, Inc. (NASDAQ:EWCZ), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. On December 17 and 18, Nital sold a total of 19,392 shares of Class A Common Stock. The transactions were executed at prices ranging from $5.8 to $5.8515 per share, amounting to a total value of approximately $112,697. The stock, which has declined over 61% year-to-date, currently trades at $5.24. According to InvestingPro analysis, the company maintains a "GOOD" financial health score and appears undervalued based on its Fair Value assessment.
Following these sales, Nital holds 14,214 shares in the company. The transactions did not involve any equity swaps, and the shares were sold directly. InvestingPro subscribers have access to 15+ additional insights about EWCZ, including detailed analysis of its impressive 73% gross profit margins and comprehensive valuation metrics.
In other recent news, European Wax Center has seen several significant developments. The company’s third-quarter 2024 results indicated a slight decrease in revenue to $55.4 million and same-store sales, while system-wide sales remained steady at $240.2 million. A gross margin improvement to 72.9% was also reported. The company’s financial outlook for 2024 anticipates system-wide sales between $930 million and $950 million, with an adjusted EBITDA of $70 million to $74 million.
Analyst firms Telsey Advisory Group, Citi, and Morgan Stanley (NYSE:MS) have all adjusted their ratings for European Wax Center. Telsey downgraded the stock from Outperform to Market Perform, while Citi downgraded the stock from Buy to Neutral. Morgan Stanley also downgraded the company’s stock from Equalweight to Underweight, citing concerns about rapid expansion and inconsistent sales growth.
European Wax Center’s plans to open 43 new centers have been met with caution due to recent challenges. The company has also paused the expansion of its laser hair removal pilot and has not purchased any corporate units from franchisees. This news comes amid leadership changes and a focus on attracting new guests and increasing sales.
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