As the State Board of Administration of Florida Retirement System has recently trimmed its holdings in Planet Fitness, Inc. by 1.9% in the fourth quarter, investors may be wondering whether or not this is a cause for concern. According to the 13F filing with the Securities and Exchange Commission (SEC), the institutional investor owned 92,400 shares of Planet Fitness worth $7,281,000 at the end of the most recent reporting period.
However, it’s important to note that while this may seem like a significant decrease in holdings at first glance, State Board of Administration still owns about 0.10% of Planet Fitness. This means that despite the trimming of holdings, they are still investing in this company.
Planet Fitness (NYSE:PLNT) recently announced its quarterly earnings data on Thursday, May 4th. While they reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.05), the firm’s revenue for the quarter was up 19.0% on a year-over-year basis.
The negative return on equity reported by Planet Fitness is something to keep an eye on moving forward as we approach the end of the current fiscal year. Analysts expect that Planet Fitness will post 2.18 EPS for the current fiscal year.
Investors should also take note that while State Board of Administration did trim their holdings in Planet Fitness, it is just one institution’s decision and not necessarily indicative of industry-wide sentiment towards PLNT stock.
Overall, it’s important for investors to perform their own research before making any decisions regarding their portfolios and investments in companies such as Planet Fitness. While there may be cause for concern in terms of missed earnings estimates and negative return on equity, it is important to take a balanced approach when evaluating investment opportunities.
As we move further into 2023 and beyond, monitoring how institutions like State Board of Administration respond to companies such as Planet Fitness will be critical in understanding the health and potential growth of these businesses within the market.
Planet Fitness, Inc. and the Financial Sector’s Support for its Growth Potential
The fitness industry has come a long way from its humble beginnings. The advent of technology and consumer awareness has created a shift in the way we approach health and wellness. In light of this, Planet Fitness, Inc. (PLNT) is at the forefront of this revolution with several institutional investors and hedge funds adding to or reducing their stakes in the company.
Sandy Spring Bank, for instance, increased its position in shares of Planet Fitness by 25% during Q3 of 2022. This move shows confidence in the growth potential of the company, as it indicates that there are many opportunities for substantial gains moving forward.
Strs Ohio also acquired a new position in shares of Planet Fitness during Q4 2022 valued at $25,216,000. Xponance Inc., on the other hand, increased its position in shares of Planet Fitness by 18.4% also during Q4 2022 and now owns over 9 thousand shares valued at $716 thousand.
The trend continues with Tudor Investment Corp Et Al acquiring new positions in shares of Planet Fitness worth an estimated $8,260,000 also during Q3 2022; while Envestnet Asset Management Inc increased its position by 2.4% during Q4 2022 purchasing an additional 6k+ shares valued at $20 million.
In total, institutional investors own approximately 94.56% of PLNT’s stock signifying broad-based support within the financial sector for PLNT’s value proposition to investors.
Shares of Planet Fitness opened trading at $69.11 per share on May 11th , up from its previous year low listed as $54.15 and just slightly below its previous year high stated as $85.90 . The company’s market capitalization is said to be around $6.18 billion with Price-to-earnings growth ratio standing at nearly1½ times that showing consistent and healthy growth.
Overall, Planet Fitness’ recent financial maneuvering has attracted the attention of several investors. This boost in interest shows that the company is poised to continue its trajectory of growth within the health and wellness industry. The shift in focus towards fitness and healthy living aligns with consumer trends seen over the last decade; positioning PLNT for considerable revenue upside as we look to a future where good health, exercise and quality workspace life balance continue to become more important for many people.
