NEW YORK (TheStreet) -- Shares of Weight Watchers (WTW) - Get Report were dropping 5.41% to $9.80 in after-hours trading on Monday after the company announced that CEO James Chambers is resigning effective September 30.
The New York-based weight management services provider said it is beginning the search for a new CEO.
Weight Watchers' board has created an interim office to lead the company until a permanent CEO is appointed. The three members of the office are: CFO Nicholas Hotchkin and Directors Thilo Semmelbauer and Christopher Sobecki.
"We remain confident we will deliver revenue and earnings growth in 2016, and that the third quarter will be our fourth consecutive quarter of year-over-year member recruitment growth," Hotchkin said in a statement.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: WTW