Here are the Reasons for the Decline of Planet Fitness (PLNT) in Q2
Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, Class A shares of the fund underperformed the Russell 2500 Growth Index. The Healthcare and industrial sectors contributed to the relative performance of the fund in the quarter while Consumer discretionary and Information technology detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Planet Fitness, Inc. (NYSE:PLNT) in the second quarter 2023 investor letter. Headquartered in Hampton, New Hampshire, Planet Fitness, Inc. (NYSE:PLNT) is a fitness center operator. On September 15, 2023, Planet Fitness, Inc. (NYSE:PLNT) stock closed at $50.29 per share. One-month return of Planet Fitness, Inc. (NYSE:PLNT) was -15.58%, and its shares lost 23.32% of their value over the last 52 weeks. Planet Fitness, Inc. (NYSE:PLNT) has a market capitalization of $4.433 billion.
Alger Weatherbie Specialized Growth Fund made the following comment about Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2023 investor letter:
"Planet Fitness, Inc. (NYSE:PLNT) is one of the largest and fastest-growing franchisors and operators of fitness clubs in the United States. with over 2,000 clubs (95% franchised) and approximately 18 million members. The company offers high-quality, approachable fitness experiences at a compelling value, targeting the approximately 80% of the U.S. population who currently do not belong to a fitness club. Additionally, Planet Fitness supplies its franchisees with fitness equipment. During the period, the company reported weaker-than-expected fiscal first quarter results, as revenues and earnings fell below consensus estimates. The company noted that despite strong membership growth, equipment revenue fell due to lower new placements. Further, the company cited higher-than-expected operating expenses weighing on quarterly earnings. Despite the near-term weakness, management reaffirmed full-year revenue guidance and noted that the company is still on track to meet its 3-year target of opening approximately 600 additional stores. We believe the company's differentiated business model is well positioned to continue gaining market share, given its momentum in new memberships and focus on targeting underserved consumers with an attractive value proposition within the fitness industry."
Planet Fitness, Inc. (NYSE:PLNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Planet Fitness, Inc. (NYSE:PLNT) at the end of second quarter which was 35 in the previous quarter.
We discussed Planet Fitness, Inc. (NYSE:PLNT) in another article and shared the list of best weight loss stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
