What Happened?
Shares of personal care company Nu Skin (NYSE:NUS) jumped 21.9% in the morning session after the company announced the sale of the Mavely affiliate technology platform, owned by its subsidiary Rhyz Inc., to Later, a marketing and social media management software firm. Valued at $250 million, the deal delivered a substantial payoff, with management adding, "This transaction yielded roughly a fivefold return on the company's total investment in Mavely since its acquisition in 2021."
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What The Market Is Telling Us
Nu Skin’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Nu Skin and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock dropped 27.3% on the news that the company reported weak fourth-quarter results and provided underwhelming guidance. Specifically, full-year revenue and EPS guidance missed analysts' expectations by a large amount. Next quarter's guidance was no better, with both revenue and EPS again coming in below expectations. Overall, this was a mediocre quarter for Nu Skin.
Investors who bought $1,000 worth of Nu Skin’s shares 5 years ago would now be looking at an investment worth $199.33.
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