WWE: Weekly Stock Highlights #3, October 15th-19th, 2018
WWE stock traded down every day of the week this week, falling from a close of $85.55 last Friday to settle at $82.03 today. This represents a one-week decline of -4.11%.
Since I have started covering WWE stock on Daily DDT (that’s about three weeks), the stock is down -15.75% ($97.36).
WWE is still well above its 52-week low of $21.22 (+286.57%).
All eyes now shift to the next earnings report due next week on October 25th.
WWE STOCK PERFORMANCE, WEEK OF 10/15 TO 10/19
| Day | Open | Close | Change |
| Monday | $85.09 | $84.97 | -0.68% |
| Tuesday | $85.99 | $84.29 | -0.80% |
| Wednesday | $84.89 | $83.95 | -0.40% |
| Thursday | $83.76 | $83.50 | -0.57% |
| Friday | $83.88 | $82.03 | -1.76% |
Highlights From The Week
On Tuesday morning JBL went on Fox News (video below) to defend WWE making a second trip to Saudi Arabia. WWE will host its second event, Crown Jewel, on November 2nd.
The controversy is Saudi Arabia could be one big reason why WWE stock closed -0.80% on Tuesday while the rest of the market moved higher (Dow Jones +2.17%, S+P 500 +2.15%, NASDAQ +2.89).
Last week, WWE seemed to move with the broader market as it sold off about 6% on a week the market was down 4%. If the market is showing signs of bouncing from that sell-off, something has WWE stock stuck on the way down.
WWE declared a $0.12 dividend on Thursday. This was in-line with the dividend for the past several years. Given the recent run-up, investors were looking for a small increase.
Kevin’s Take
The stock now trades a mere $0.03 cents off my 2019 price target of $82. I reiterate that target for the next 12 months and continue to recommend a HOLD.
Until WWE stock can show some signs of life to the upside, you may see people continue to sell of profits on a stock up almost 300% for the year.
WWE is currently trading at 62x 2019 earnings estimates ($1.31 EPS) and 25x 2020 earnings estimates ($3.29 EPS) based on Friday’s closing price of $82.03.
Next Earnings Report: October 25th, 2018
Recent Articles / Related Content
Weekly Highlights #1, Week of 10/01 through 10/05
Weekly Highlights #2, Week of 10/08 through 10/12
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.