Here's Why Weight Watchers (WTW) Stock Is Up Today

Weight Watchers (WTW) stock is gaining in early morning trading on Monday, after billionaire investor Steven Cohen disclosed a 6% stake in the company on Friday.
By Rachel Graf ,

NEW YORK (TheStreet) -- Weight Watchers (WTW) - Get Report stock is higher by 3.57% to $23.76 in early morning trading on Monday, after billionaire investor Steven Cohen disclosed a 6% stake in the weight management services company on Friday. 

Cohen controls 3.8 million shares, most of it through his investment firm Point72 Asset Management, according to the Wall Street Journal. 

Last month, Weight Watchers stock skyrocketed after media proprietor Oprah Winfrey invested about $43.2 million for a 10% stake in the company.

Additionally, on Thursday the company posted third quarter 2015 earnings of 39 cents per share on revenue of $273.3 million. Analysts surveyed by Thomson Reuters had forecast for earnings of 29 cents per share on revenue of $266.5 million.

Weight Watchers raised its full-year 2015 earnings guidance to a range between 64 cents and 74 cents per share, up from a prior range between 57 cents per share and 72 cents per share.

Separately, TheStreet Ratings team rates WEIGHT WATCHERS INTL INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate WEIGHT WATCHERS INTL INC (WTW) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: WTW

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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