Planet Fitness (NYSE:PLNT) Cut to “Strong Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Planet Fitness (NYSE:PLNT) from a hold rating to a strong sell rating in a research note published on Wednesday, Zacks.com reports. Zacks Investment Research currently has $63.00 price target on the stock.

According to Zacks, “Shares of Planet Fitness have outperformed the industry in the past year. This momentum is likely to continue as investors are impressed with better-than-expected earnings trend and robust same-store sales performance. During second-quarter 2019, it posted the 50th straight quarter of positive same-store sales. Meanwhile, increase in net member and higher average royalty rate have been driving comparable sales. Additionally, increased Black Card pricing bodes well. Planet Fitness’ consistent focus on partnership and international expansion to drive growth is an added positive. Recently, it announced partnership with Kohl’s. Over the past 60 days, the consensus mark for the year remained unchanged, reflecting analysts’ concern on the company’s growth potential. However, high debt remains a concern.”

PLNT has been the subject of a number of other reports. Roth Capital boosted their price target on Planet Fitness from $80.00 to $86.00 and gave the company a buy rating in a research note on Wednesday, August 7th. Imperial Capital upgraded Planet Fitness from an in-line rating to an outperform rating and set a $72.50 price target for the company in a research note on Monday, October 14th. Berenberg Bank downgraded Planet Fitness from a buy rating to a hold rating and cut their price target for the company from $80.00 to $69.00 in a research note on Tuesday, September 3rd. Finally, ValuEngine downgraded Planet Fitness from a hold rating to a sell rating in a research note on Tuesday. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and nine have given a buy rating to the company’s stock. Planet Fitness presently has an average rating of Buy and an average target price of $76.50.

NYSE PLNT opened at $68.42 on Wednesday. The stock has a 50-day moving average of $60.22 and a 200 day moving average of $70.59. The company has a market capitalization of $5.55 billion, a price-to-earnings ratio of 56.08, a PEG ratio of 1.69 and a beta of 0.63. Planet Fitness has a one year low of $48.00 and a one year high of $81.90.

Planet Fitness (NYSE:PLNT) last released its quarterly earnings results on Thursday, November 7th. The company reported $0.36 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.35 by $0.01. The business had revenue of $166.82 million during the quarter, compared to the consensus estimate of $162.26 million. Planet Fitness had a negative return on equity of 46.45% and a net margin of 16.29%. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.28 EPS. On average, equities research analysts anticipate that Planet Fitness will post 1.57 EPS for the current year.

Several hedge funds have recently bought and sold shares of the company. Frontier Wealth Management LLC lifted its position in shares of Planet Fitness by 4.6% during the 2nd quarter. Frontier Wealth Management LLC now owns 3,670 shares of the company’s stock valued at $266,000 after buying an additional 160 shares in the last quarter. Landsberg Bennett & Dubbaneh LLC lifted its holdings in Planet Fitness by 0.8% in the 3rd quarter. Landsberg Bennett & Dubbaneh LLC now owns 28,800 shares of the company’s stock worth $1,654,000 after purchasing an additional 238 shares in the last quarter. Groesbeck Investment Management Corp NJ lifted its holdings in Planet Fitness by 2.8% in the 3rd quarter. Groesbeck Investment Management Corp NJ now owns 9,610 shares of the company’s stock worth $556,000 after purchasing an additional 260 shares in the last quarter. Bank of Montreal Can lifted its holdings in Planet Fitness by 157.1% in the 2nd quarter. Bank of Montreal Can now owns 486 shares of the company’s stock worth $35,000 after purchasing an additional 297 shares in the last quarter. Finally, Zacks Investment Management lifted its holdings in Planet Fitness by 0.5% in the 2nd quarter. Zacks Investment Management now owns 59,612 shares of the company’s stock worth $4,318,000 after purchasing an additional 307 shares in the last quarter. 88.97% of the stock is currently owned by hedge funds and other institutional investors.

About Planet Fitness

Planet Fitness, Inc, together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness name. It operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, and Panama.

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