Why Tivity Health, Pandora Media, and Weis Markets Slumped Today
The stock market had a solid performance on Monday, with the Dow Jones Industrials and other major benchmarks climbing to record highs. Progress on the House tax bill, encouraging signs from President Trump's Asia trip, and a lack of negative economic news contributed to general enthusiasm from market participants. Yet even with a positive mood on Wall Street, some companies weren't able to share in the good news, and Tivity Health (NASDAQ: TVTY), Pandora Media (NYSE: P), and Weis Markets (NYSE: WMK) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Tivity Health plunged more than 30% in the wake of a competitor's move to threaten one of its key programs. UnitedHealth Group (NYSE: UNH) has expanded its own fitness benefit offerings for seniors under its Optum unit's Medicare Advantage plans, which investors saw as a direct challenge to Tivity's SilverSneakers program. Some saw the sell-off as unwarranted, with analysts noting that SilverSneakers will retain its exclusivity in key markets as well as Tivity's existing relationship with UnitedHealth in offering fitness facility access under its Prime Fitness network. Given Tivity's success over the past year, it's also possible that shareholders are simply taking profits after a long, lucrative run for the senior health specialist.
Image source: Tivity Health.
Source: Fool.com
