Oprah’s windfall on Weight Watchers hits $340 million

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Meet the new queen of Wall Street—Oprah Winfrey could make eight times her original investment, and lost some weight, in less than two years since buying shares in Weight Watchers International Inc.

Shares of the weight management company












WTW, +25.12%










 rocketed 25.1% in active trade to $41.39, the highest close since Aug. 1, 2013, after the company reported better-than-expected second-quarter profit and sales, and raised its earnings outlook for the year. Trading volume exceeded 9.9 million shares, compared with the full-day average of about 1.2 million shares.

The stock has now nearly quadrupled this year, and has rocketed 510% since Oprah took about a 10% stake in the company 22 months ago. In comparison, shares of Warren Buffett’s Berkshire Hathaway Inc.












BRK.B, +0.52%










 have climbed 34.5% in 22 months, while the S&P 500 index












SPX, +0.19%










 has gained 21.8%.



On Oct. 19, 2015, Weight Watchers disclosed that Oprah spent $43.20 million to buy 6,362,103 shares at $6.79 a share. At current prices, that original investment is now worth $263.33 million, a gain of $220.13 million.

Don’t miss: Oprah gives Weight Watchers investors their best day ever.

As part of a collaboration agreement, the company also granted Oprah options to buy 3,513,468 shares at a price of $6.97 a share. If she were to exercise the options, she would stand to gain another $120.93 million at current prices.

That would bring her total gain to $341.06 million, which is about 7.9 times her original investment.

If that’s not enough, Oprah said last year that she lost over 40 pounds since starting Weight Watchers.



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