Planet Fitness (NYSE:PLNT) Stock Rating Upgraded by Zacks Investment Research

Planet Fitness (NYSE:PLNT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Friday, Zacks.com reports. The firm presently has a $56.00 target price on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 7.28% from the stock’s current price.

According to Zacks, “Shares of Planet Fitness have outperformed the industry so far this year. Notably, the company has been benefitting from consistent focus on strategic partnerships and accelerated digital initiatives. Moreover, its collaboration with iFit to boost online offerings, bode well. Notably, earnings estimates for 2020 have witnessed upward revisions over the past 30 days, depicting analysts optimism regarding the stock’s growth potential. However, decline in traffic due to coronavirus-induced shutdowns pose concerns. Due to the uncertainty and significant business impacts caused by COVID-19, the company has also withdrawn its previously issued guidance for 2020. Moreover, the company’s high debt level acts as a hindrance to tide over the ongoing crisis.”

PLNT has been the subject of several other research reports. Cowen upped their price target on shares of Planet Fitness from $65.00 to $80.00 and gave the company an “outperform” rating in a research report on Thursday, June 4th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $80.00 target price on shares of Planet Fitness in a report on Tuesday, June 16th. Bank of America reissued a “buy” rating and set a $88.00 price target on shares of Planet Fitness in a report on Wednesday, June 3rd. Berenberg Bank reaffirmed a “hold” rating and set a $56.00 price objective on shares of Planet Fitness in a research note on Wednesday, July 8th. Finally, JPMorgan Chase & Co. lowered their target price on Planet Fitness from $75.00 to $70.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Five analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $74.71.

Planet Fitness stock opened at $52.20 on Friday. The company has a market capitalization of $4.51 billion, a P/E ratio of 37.02, a PEG ratio of 4.54 and a beta of 1.22. Planet Fitness has a fifty-two week low of $23.77 and a fifty-two week high of $88.77. The stock has a 50-day simple moving average of $60.51 and a 200-day simple moving average of $63.54.

Planet Fitness (NYSE:PLNT) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.16 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.20). Planet Fitness had a negative return on equity of 23.53% and a net margin of 14.82%. The firm had revenue of $127.23 million for the quarter, compared to analyst estimates of $152.61 million. During the same period last year, the firm earned $0.35 EPS. The company’s quarterly revenue was down 14.5% on a year-over-year basis. Sell-side analysts forecast that Planet Fitness will post 0.66 earnings per share for the current year.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wasatch Advisors Inc. grew its position in Planet Fitness by 215.2% during the first quarter. Wasatch Advisors Inc. now owns 2,599,276 shares of the company’s stock worth $126,585,000 after buying an additional 1,774,658 shares during the period. Valinor Management L.P. boosted its stake in shares of Planet Fitness by 310.1% during the 1st quarter. Valinor Management L.P. now owns 1,283,530 shares of the company’s stock worth $62,508,000 after acquiring an additional 970,550 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Planet Fitness by 68.7% in the 1st quarter. JPMorgan Chase & Co. now owns 2,284,926 shares of the company’s stock worth $111,275,000 after acquiring an additional 930,713 shares during the period. Eminence Capital LP purchased a new position in Planet Fitness in the 1st quarter valued at approximately $44,087,000. Finally, Norges Bank acquired a new position in Planet Fitness during the fourth quarter worth $51,638,000. Hedge funds and other institutional investors own 98.15% 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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