Planet Fitness (NYSE:PLNT) Shares Gap Down - Should You Sell?

Key Points

• Planet Fitness shares gapped down at market open, falling from a previous close of $109.27 to $101.84, with the last trade at $100.15.
• Wall Street analysts maintain a consensus rating of "Moderate Buy" for Planet Fitness, with price targets ranging from $95.00 to $126.00.
• Recent quarterly results show Planet Fitness reported $0.86 earnings per share, exceeding estimates and reflecting a 13.3% increase in revenue year-over-year.

Planet Fitness, Inc. (NYSE:PLNT - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $109.27, but opened at $101.84. Planet Fitness shares last traded at $100.15, with a volume of 885,769 shares.

Analyst Ratings Changes

Several brokerages have weighed in on PLNT. Stifel Nicolaus set a $120.00 price objective on Planet Fitness and gave the company a "buy" rating in a report on Thursday, May 22nd. Raymond James Financial reiterated a "strong-buy" rating on shares of Planet Fitness in a research note on Thursday. Canaccord Genuity Group set a $126.00 price target on shares of Planet Fitness and gave the stock a "buy" rating in a report on Thursday, June 12th. Macquarie reiterated a "neutral" rating and set a $95.00 price target on shares of Planet Fitness in a research report on Tuesday, May 13th. Finally, Morgan Stanley upped their target price on Planet Fitness from $111.00 to $112.00 and gave the stock an "overweight" rating in a research note on Friday, May 9th. Three analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $107.38.

Planet Fitness Stock Performance

The stock has a market capitalization of $8.99 billion, a P/E ratio of 47.45, a PEG ratio of 2.37 and a beta of 1.40. The business has a fifty day simple moving average of $107.73 and a 200-day simple moving average of $101.86.

Planet Fitness (NYSE:PLNT - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.07. Planet Fitness had a net margin of 15.11% and a negative return on equity of 110.18%. The business had revenue of $340.88 million for the quarter, compared to analyst estimates of $329.59 million. During the same period in the prior year, the firm earned $0.71 earnings per share. Planet Fitness's revenue was up 13.3% on a year-over-year basis. On average, sell-side analysts anticipate that Planet Fitness, Inc. will post 2.51 earnings per share for the current year.

Institutional Investors Weigh In On Planet Fitness

Hedge funds have recently added to or reduced their stakes in the company. Game Plan Financial Advisors LLC acquired a new stake in Planet Fitness in the 2nd quarter valued at $25,000. Hantz Financial Services Inc. grew its holdings in shares of Planet Fitness by 964.0% during the second quarter. Hantz Financial Services Inc. now owns 266 shares of the company's stock valued at $29,000 after buying an additional 241 shares during the last quarter. Brooklyn Investment Group increased its position in shares of Planet Fitness by 57.8% during the first quarter. Brooklyn Investment Group now owns 322 shares of the company's stock worth $31,000 after acquiring an additional 118 shares in the last quarter. First Horizon Advisors Inc. raised its holdings in shares of Planet Fitness by 187.6% in the 1st quarter. First Horizon Advisors Inc. now owns 371 shares of the company's stock worth $36,000 after acquiring an additional 242 shares during the last quarter. Finally, CoreCap Advisors LLC lifted its position in Planet Fitness by 1,250.0% in the 4th quarter. CoreCap Advisors LLC now owns 486 shares of the company's stock valued at $48,000 after acquiring an additional 450 shares in the last quarter. Institutional investors and hedge funds own 95.53% of the company's stock.

About Planet Fitness

Planet Fitness, Inc, together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia.