Planet Fitness (NYSE:PLNT) Lowered 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 report released on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $83.00 target price on the stock.

According to Zacks, “Shares of Planet Fitness have outperformed the industry in the past year. The company’s consistent focus on strategic partnership and international expansion are likely to drive growth. Meanwhile, increase in net member and higher average royalty rate have been driving comparable sales. Additionally, increased Black Card pricing bodes well. Recently, the company reached an Area Development Agreement with Bravo Fit Holdings Pty Ltd. to open 35 Planet Fitness locations in Australia over the next few years. Of late, earnings estimate for 2020 have witnessed downward revision over the past 60 days, reflecting analysts’ pessimism regarding the stock’s growth potential. High debt is a concern. Also, the leisure industry is cyclical and worsening global economic conditions might dent Planet Fitness’ revenues and profits.”

PLNT has been the subject of several other reports. ValuEngine lowered shares of Planet Fitness from a hold rating to a sell rating in a research note on Tuesday, November 5th. Roth Capital lowered their target price on shares of Planet Fitness from $86.00 to $75.00 and set a buy rating for the company in a research note on Friday, November 8th. Piper Jaffray Companies reissued a buy rating and set a $84.00 target price on shares of Planet Fitness in a research note on Wednesday, November 13th. Macquarie reissued a buy rating and set a $90.00 target price on shares of Planet Fitness in a research note on Monday, November 25th. Finally, Robert W. Baird boosted their target price on shares of Planet Fitness from $84.00 to $90.00 and gave the company an outperform rating in a research note on Tuesday. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and nine have assigned a buy rating to the company. Planet Fitness currently has a consensus rating of Buy and an average target price of $79.77.

PLNT stock opened at $80.73 on Tuesday. The firm has a fifty day moving average price of $74.72 and a 200 day moving average price of $69.67. Planet Fitness has a fifty-two week low of $56.14 and a fifty-two week high of $81.90. The firm has a market cap of $7.29 billion, a PE ratio of 66.17, a price-to-earnings-growth ratio of 1.92 and a beta of 0.66.

Planet Fitness (NYSE:PLNT) last posted its earnings results on Thursday, November 7th. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.01. Planet Fitness had a net margin of 16.80% and a negative return on equity of 37.57%. The firm had revenue of $166.82 million during the quarter, compared to analyst estimates of $162.26 million. During the same period last year, the firm posted $0.28 earnings per share. Planet Fitness’s revenue for the quarter was up 22.1% compared to the same quarter last year. As a group, research analysts anticipate that Planet Fitness will post 1.57 EPS for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in the stock. Chicago Capital LLC boosted its position in Planet Fitness by 4,254.9% in the fourth quarter. Chicago Capital LLC now owns 313,556 shares of the company’s stock valued at $23,416,000 after buying an additional 306,356 shares during the last quarter. Artemis Investment Management LLP boosted its position in Planet Fitness by 2.0% in the fourth quarter. Artemis Investment Management LLP now owns 971,462 shares of the company’s stock valued at $71,974,000 after buying an additional 19,514 shares during the last quarter. Patten & Patten Inc. TN purchased a new stake in Planet Fitness in the fourth quarter valued at approximately $314,000. Maverick Capital Ltd. boosted its position in Planet Fitness by 395.0% in the third quarter. Maverick Capital Ltd. now owns 165,562 shares of the company’s stock valued at $9,581,000 after buying an additional 132,112 shares during the last quarter. Finally, Squarepoint Ops LLC purchased a new stake in Planet Fitness in the third quarter valued at approximately $43,316,000. Hedge funds and other institutional investors own 90.11% of the company’s stock.

Planet Fitness Company Profile

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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