NEW YORK (TheStreet) -- Shares of Groupon (GRPN) were gaining 8.5% to $7.80 with heavy trading volume on Thursday, continuing gains from Wednesday when Leon Cooperman, CEO of the hedge fund Omega Advisors commented on the stock.
About 21.9 million shares of Groupon traded hands as of 12:45 p.m. Thursday, above the average daily trading volume of about 15.9 million shares.
On Wednesday Cooperman told CNBC that shares of Groupon seemed "mispriced." The hedge fund CEO said shares of Groupon are worth 40% to 50% more than their current price, which helped bring up the price of the stock.
Cooperman's Omega Advisors bought an 8.8 million share stake in Groupon in the third quarter.
TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a SELL. This is driven by several 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 deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: