Xponential Fitness (NYSE:XPOF) Downgraded by Lake Street Capital to Hold

Key Points

• Lake Street Capital downgraded Xponential Fitness from "buy" to "hold" and set a $6.00 target, roughly in line with Friday's open (~$6.04) and implying about a 0.7% downside.
• Xponential missed its latest quarter—EPS of −$0.04 vs. $0.11 expected and revenue $60.71M vs. $63.75M—while revenue fell 21% year‑over‑year and the company reported a negative net margin (−10.9%).
• MarketBeat shows a consensus Hold rating (1 Buy, 8 Hold, 1 Sell) with an average target of $8.50, and institutional investors own about 58.6% of the stock, led by a large position increase from Voss Capital.

Xponential Fitness (NYSE:XPOF - Get Free Report) was downgraded by analysts at Lake Street Capital from a "buy" rating to a "hold" rating in a research note issued on Friday, Marketbeat reports. They presently have a $6.00 target price on the stock. Lake Street Capital's target price indicates a potential downside of 0.70% from the stock's current price.

A number of other research analysts have also recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Xponential Fitness in a research report on Monday, April 20th. Zacks Research raised shares of Xponential Fitness from a "strong sell" rating to a "hold" rating in a research report on Monday. Wall Street Zen cut shares of Xponential Fitness from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Robert W. Baird reduced their price target on shares of Xponential Fitness from $8.00 to $6.50 and set a "neutral" rating on the stock in a research report on Friday, February 27th. Finally, Guggenheim reduced their price target on shares of Xponential Fitness from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $8.50.

Xponential Fitness Stock Performance

XPOF opened at $6.04 on Friday. The stock has a market capitalization of $296.36 million, a PE ratio of -4.18 and a beta of 1.19. Xponential Fitness has a 1 year low of $3.83 and a 1 year high of $11.14. The company's 50 day simple moving average is $6.36 and its 200 day simple moving average is $7.11.

Xponential Fitness (NYSE:XPOF - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of $0.11 by ($0.15). The business had revenue of $60.71 million for the quarter, compared to analyst estimates of $63.75 million. Xponential Fitness had a negative net margin of 10.90% and a negative return on equity of 2.19%. The company's quarterly revenue was down 21.0% on a year-over-year basis. During the same period last year, the firm earned $0.20 earnings per share. As a group, sell-side analysts expect that Xponential Fitness will post 0.51 earnings per share for the current fiscal year.

Institutional Trading of Xponential Fitness

A number of hedge funds and other institutional investors have recently made changes to their positions in XPOF. Voss Capital LP increased its stake in shares of Xponential Fitness by 86.7% in the fourth quarter. Voss Capital LP now owns 6,033,653 shares of the company's stock worth $49,657,000 after buying an additional 2,801,153 shares during the last quarter. Citizens Business Bank bought a new stake in shares of Xponential Fitness in the first quarter worth $12,040,000. Hudson Bay Capital Management LP bought a new stake in shares of Xponential Fitness in the fourth quarter worth $6,172,000. CenterBook Partners LP bought a new stake in shares of Xponential Fitness in the fourth quarter worth $4,253,000. Finally, Cibc World Markets Corp bought a new stake in shares of Xponential Fitness in the fourth quarter worth $3,718,000. Institutional investors own 58.55% of the company's stock.

About Xponential Fitness

Xponential Fitness is a leading franchisor and operator of boutique fitness studios headquartered in Irvine, California. The company specializes in developing, marketing, and supporting a portfolio of fitness brands that deliver low-impact cardio, strength training, and mindful movement workouts. Through its asset-light franchise model, Xponential provides entrepreneurs with proprietary studio designs, branded equipment, digital support, and comprehensive training programs to ensure consistent member experiences.

Its portfolio comprises core brands such as Club Pilates, Pure Barre, CycleBar, StretchLab, YogaSix, Row House, Rumble, AKT, and STRIDE.

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