An investigation for investors in Weis Markets, Inc. (NYSE: WMK) shares over potential securities laws violations by Weis Markets, Inc. was announced.
San Diego, CA -- (SBWIRE) -- 10/17/2018 -- An investigation was announced over potential securities laws violations by Weis Markets, Inc. in connection with certain financial statements.
Investors who purchased shares of Weis Markets, Inc. (NYSE: WMK), have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether a series of statements by Weis Markets, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Sunbury, PA based Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. Weis Markets, Inc. reported that its annual Total Revenue rose from over $3.13 billion in 2016 to over $3.46 billion in 2017 and that its Net Income increased from $87.16 million in 2016 to $98.41 million in 2017.
Shares of Weis Markets, Inc. (NYSE: WMK) grew from $37.28 per share in March 2018 to as high as $57.82 per share in June 2018.
On September 5, 2018, Spruce Point Capital Management ("Spruce Point") published a report on Weis Markets, Inc, asserting that "Weis is obfuscating its financial pressures with aggressive accounting and reduced disclosures that will make its recent share price performance unsustainable." The Spruce Point report noted that "Weis is currently the highest valued supermarket in the stock market, despite negative organic growth, declining gross and EBITDA margins, among the worst returns on capital in the industry, poor governance, and limited information provided by management." Among other issues, the Spruce Point report asserted that its analysis had disproved Weis Markets, Inc's claim that its "2017 sales growth was 'primarily' from acquisitions," but instead "show[ed] that core grocery and pharmacy sales declined by 1.1%;" and that Weis Markets, Inc 's April 2018 announcement of "a new $101m capex plan to invest in growth," including the opening of two new stores, "did not disclose to investors that [Weis] would close three stores, resulting in unit stores declining by 1 in 2018."
Shares of Weis Markets, Inc. (NYSE: WMK) declined to as low as $42.11 per share on October 4, 2018.
Those who purchased shares of Weis Markets, Inc. (NYSE: WMK) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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92108 San Diego
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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