On May 10, 2023, shares of Planet Fitness (NYSE:PLNT) opened at $72.02, with a market cap of $6.44 billion and a P/E ratio of 57.62. The fitness center operator has been experiencing volatile movement in its stock prices with a twelve-month low of $54.15 and high of $85.90, establishing a fifty-day moving average price of $77.43 and 200-day moving average price of $76.84.
Recently, analysts have been paying close attention to the company’s performance. Stifel Nicolaus decreased its price target from $93 to $78 in a recent report while Cowen upped its price target from $90 to $92 and gave the company an ‘outperform’ rating on February 27th. Piper Sandler also raised its price objective on shares from $96 to $98 with an ‘overweight’ rating in a research report on April 10th.
Despite several reports indicating positive growth for Planet Fitness’ share value, Bloomberg reports that four investment analysts have given it a hold rating while eight others gave it a buy rating along with one strong buy rating. According to Bloomberg’s consensus target price of $86.67 for the stock, there is seen potential for growth in the coming years.
Planet Fitness engages in operating and franchising fitness centers across various regions including the United States, Puerto Rico, Canada, Dominican Republic, Panama, Mexico and Australia under three segments namely; Franchise Corporate-Owned Stores and Equipment.
In light of earnings data released by the company on Thursday, May 4th, Planet Fitness reported revenue earnings worth $222.23 million for Q1-2023 compared to analysts’ forecasts totaling $238.30 million resulting in an EPS rate less than consensus expectations by ($0.05). Notwithstanding this record result, Planet Fitness had recorded higher revenue, with 19.0% more earnings compared to the same quarter of the previous year and showed evidence of improvement in its net margin, which rose to 10.86%. However, the company exhibited a negative return on equity rate of 68.11%, indicating mixed performances within its quarters.
Overall, Planet Fitness remains an intriguing player in the fitness center market sector. Its recent earnings reports showcases opportunities for continued growth but remain outweighed by factors that challenge its performance metrics such as fluctuating net margins and ROE rates from time to time. This makes it an investment interest for those who want to participate in the workout industry or have a high-risk appetite which may translate into better returns for them as shareholders at exit points over time.
Planet Fitness on Track to Surpass Q2 Earnings Estimates, Bolstered by Institutional Investor Support
Fitness Industry Giant Planet Fitness on Track to Exceed Q2 Earnings Estimates
On Monday, May 8th, DA Davidson analysts issued their Q2 2023 EPS estimates for Planet Fitness Inc. (NYSE: PLNT), and the fitness industry giant is expected to exceed those estimates. According to L. Weiser, the company will earn $0.54 per share for the quarter, surpassing the consensus estimate for current full-year earnings at $2.20 per share. Additionally, DA Davidson forecasts FY2024 earnings at $2.58 EPS.
Despite a challenging period due to pandemic restrictions that battered most industries worldwide, several institutional investors have recently made changes to their positions in Planet Fitness’ stock. Eagle Asset Management Inc., for example, boosted its stake in Planet Fitness shares by 8.1% during the first quarter; it currently holds 2,182,052 shares valued at $169,479,000 after purchasing an additional 164,178 shares during the period.
Similarly, Public Employees Retirement Association of Colorado increased its stake in shares of Planet Fitness by 1%, currently owning 322,133 shares of the company’s stocks worth around $25 million after purchasing an additional 3,183 shares during the period compared to previous quarters.
Zurcher Kantonalbank Zurich Cantonalbank also boosted its stake in shares of Planet Fitness by approximately 4.7% during the first quarter and now owns 12,691 of the fitness company’s stocks valued at $986K after purchasing an additional 574 shares during this period.
Picton Mahoney Asset Management also purchased a new stake in shares of Planet Fitness worth approximately $3.796M during this time frame; Empire Life Investments Inc.’s purchases were not small either at roughly $1.354M after increasing its stakes by more than one-quarter (25%) during Q1.
It is not surprising that hedge funds and other institutional investors own 94.56% of the company’s stock. As with any fitness business, Planet Fitness’ profits rely on these partnerships to grow and expand in an ever-challenging environment.
Looking ahead, despite fierce competition from established chains and boutique studios alike, Planet Fitness can confidently assure investors of its resilience and success given recent earnings forecasts and investment activity. The company expects continued growth due to pent-up demand for gym access post-COVID restrictions; it now has over 2,000 locations in the United States alone, with plans for expansion overseas.
Therefore, prospective and actual shareholders can remain optimistic about their investments in this iconic fitness giant as they lead the industry to better health for all.
