Why World Wrestling Entertainment Stock Is Surging Today

World Wrestling Entertainment Inc WWE shares are trading higher Monday after the company announced a CEO transition and provided preliminary second-quarter financial results.

Longtime WWE CEO Vince McMahon announced his retirement on Friday as he is being investigated for alleged sexual misconduct. Following McMahon's retirement, WWE announced the appointment of Stephanie McMahon and Nick Khan as co-CEOs.

Along with the CEO update, WWE issued preliminary results for the second quarter. The company said it expects second-quarter revenue to be approximately $328 million. WWE also guided for second-quarter operating income of $70 million. 

Analyst Assessment: Several analysts bumped up price targets on the stock following the announcement. Loop Capital has suggested that WWE has a "greater likelihood" of being acquired following McMahon's departure. 

• Loop Capital analyst Alan Gould upgraded WWE from a Hold rating to Buy and raised the price target from $59 to $90. 
• Barclays analyst David Joyce maintained WWE with an Equal-Weight rating and raised the price target from $57 to $61.
• MKM Partners analyst Eric Handler maintained WWE with a Buy rating and raised the price target from $70 to $79.

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WWE Price Action: WWE shares are making new 52-week highs on Monday.

The stock was up 8.22% at $71.67 at press time, according to data from Benzinga Pro.

Photo: Anton from Flickr.