Reassessing The Changing Outlook For Planet Fitness Inc. (PLNT)

UPWK stock
UPWK stock

T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Planet Fitness Inc. (NYSE:PLNT). The institutional investor has increased its shareholding in the Consumer Cyclical company by 706.95% to 8.06 million shares with purchase of 7.06 million shares. This fresh investment now brings its stake to 10.08% valued currently at $420.75 million. In addition, SRS Investment Management LLC raised its holdings by 1.59 million to 4.95 million shares. And Steadfast Capital Management LP has lifted its position by 35.05% or 0.93 million shares – to 3.59 million shares.

With over 1.2 million Planet Fitness Inc. (PLNT) shares trading Tuesday and a closing price of $60.91 on the day, the dollar volume was approximately $73.25 million. The shares have shown a positive weekly performance of 4.17% and its price on 09/01/20 gained nearly 0.20%. Currently, there are 79.97M common shares owned by the public and among those 79.86M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for PLNT have a consensus price objective of $66.85. The analysts have set the share’s price value over the next 12 months at a high of $82.00 and a low of $47.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Planet Fitness Inc. stock is 1.90 for the next 12 months. The average price target is 18.97% above its last price level and an upside to the estimated low will see the stock lose -29.6% over that period. But an upside of 25.72% will see the stock hit the forecast high price target while mean target price for the stock is $69.00.

Insiders at the company have transacted a total of 35 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 155,725 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

The top 3 mutual fund holders in Planet Fitness Inc. are T Rowe Price New Horizons Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. T Rowe Price New Horizons Fund owns 5.75 million shares of the company’s stock, all valued at over $300.1 million. The company bought an additional 5.75 million shares recently to bring their total holdings to about 7.19% of the shares outstanding. Vanguard Total Stock Market Index sold 1431.0 shares to see its total holdings shrink to 2.29 million shares valued at over $119.3 million and representing 2.86% of the shares outstanding. Vanguard Small Cap Index Fund sold 16660.0 shares to bring its total holdings to over 1.99 million shares at a value of $103.67 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.48% of the shares outstanding.

Shares of Planet Fitness Inc. (NYSE: PLNT) opened at $60.27, down -$0.52 from a prior closing price of $60.79. However, the script later closed the day at $60.91, up 0.20%. The company’s stock has a 5-day price change of 4.17% and -21.08% over the past three months. PLNT shares are trading -18.44% year to date (YTD), with the 12-month market performance down to -9.23% lower. It has a 12-month low price of $23.77 and touched a high of $88.77 over the same period. Currently, 1.2 million shares have been traded, compared to an average intraday trading volume of 2.04 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 8.65%, 6.21%, and -5.40% respectively.

Institutional ownership of Planet Fitness Inc. (NYSE: PLNT) 79.97M shares outstanding. Mutual fund holders own 6.83%, while other institutional holders and individual stakeholders account for 61.64% and 51.51% respectively.

It has a market capitalization of $5.04B and a beta (3y monthly) value of 1.15. The stock’s trailing 12-month PE ratio is 146.77, while the earnings-per-share (ttm) stands at $0.42. The company has a PEG of 18.58 and a Quick Ratio of 4.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.38% over the week and 4.45% over the month.

Analysts forecast that Planet Fitness Inc. (PLNT) will achieve an EPS of $0.13 for the current quarter, $0.3 for the next quarter and $1.61 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.05 while analysts give the company a high EPS estimate of $0.27. Comparatively, EPS for the current quarter was $0.36 a year ago. Earnings per share for the fiscal year are expected to increase by 40.20%, and 502.62% over the next financial year. EPS should shrink at an annualized rate of 7.90% over the next five years, compared to 30.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Planet Fitness Inc. (PLNT) as a “Strong Buy” at a consensus score of 1.90. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 4 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the PLNT, a number of firms have released research notes about the stock. Raymond James stated their Mkt Perform rating for the stock in a research note on June 04, 2020, with the firm’s price target at. DA Davidson coverage for the Planet Fitness Inc. (PLNT) stock in a research note released on June 03, 2020 offered a Buy rating with a price target of $86. ROTH Capital was of a view on May 12, 2020 that the stock is Neutral, while DA Davidson gave the stock Buy rating on April 08, 2020, issuing a price target of $60. JP Morgan on their part issued Overweight rating on April 06, 2020.


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