WWE Stock: Weekly Highlights #1
WWE stock had a tough week, falling from an opening $97.36 on Monday to close at $91.34 on Friday. This represents a one-week decline of 6.18%.
Despite the tumultuous week, WWE is still well above its 52-week low of $21.22 (+330.44%). WWE is now trading 6.50% below its 52-week and all-time high of $97.69.
WWE STOCK PERFORMANCE, WEEK OF 10/01 TO 10/05
| Day | Open | Close | Change |
| Monday | $97.36 | $94.22 | -3.23% |
| Tuesday | $93.18O | $91.87 | -1.41% |
| Wednesday | $92.33 | $92.87 | +0.59% |
| Thursday | $92.76 | $90.70 | -2.22% |
| Friday | $88.65 | $91.34 | +3.03% |
Highlights From The Week
Kevin Dunn, chief of Global Television Production, sent WWE shares lower by 2.2% on Tuesday morning when the news broke that he had sold off 15,509 shares at an average of $96.70 per share on Monday.
Shares of WWE fell as much as 3% on Thursday when the stock market had its worst day in almost 2 months on fears of rising rates. The 10-year yield hit its highest level since 2011. In general, when Treasury yields rise, stocks fall, and WWE was caught up in the mix.
Kevin’s Take
My opinion on WWE stock is not likely to change on a week-by-week basis but I will update my readers periodically.
I believe the stock is currently overbought. Anytime a stock jumps from ~$20 to ~$90 in less than a year one should take pause. While there is no doubt the massive news of the $1,000,000,000 TV deal gave the stock a much-needed face-lift, WWE is currently trading at 70x 2019 earnings estimates ($1.31 EPS) and 28x 2020 earnings estimates ($3.29 EPS) based on Friday’s closing price.
I believe WWE will see $80 again before it touches $100. I could be wrong if the next earnings report is as strong as Q2 and comes with a dividend hike. WWE dividend currently sits at $0.48 a year which after its recent run up has it sitting at a 0.53% yield a year.
Next Earnings Report: October 25th, 2018
Selected Analyst Reports
Kevin Cavanagh, Daily DDT: $82 Price Target (2019), $93-$95 Price Target (2020)
KeyBanc: $104 Price Target (*High Price*)
Morgan Stanley: $100 Price Target
BTIG: $92 Price Target
Disclosure: I have no positions in WWE stock and no plans to initiate any positions within the next 72 hours. Investors should do their own due diligence before making any investment decisions.