2iQ Insider Brief: Planet Fitness Inc (PLNT: US)

Desislav Delchev 16 March 2020

Planet Fitness Inc (PLNT: US)
12-month performance: -26%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO, CFO, and President
Recent news: Solid Q4 results

Planet Fitness is a franchisor and operator of fitness centres in the US. The group currently has over 2,000 fitness centres and is one of the fastest growing health club franchises by number of members and locations. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $4.4 billion.

Planet Fitness shares have fallen in recent weeks on the back of underwhelming 2020 guidance. While revenue for 2019 increased 20.2% on the prior year and adjusted net income jumped 22.7%, investors were disappointed by the group’s 2020 sales growth forecast of 12%. "The outlook is conservative," said Jefferies analyst Randal Konik. Analysts had been expecting top line growth of closer to 14% for 2020.

planet fitnes chart

                     Source: 2iQ Research

What looks interesting here is that this month, three top-level insiders have purchased PLNT shares. According to our records, CEO Christopher Rondeau has purchased 45,000 shares, while President Dorvin Lively and CFO Thomas Fitzgerald have acquired 15,000 shares and 1,000 shares respectively. Board member Craig Benson has also added 25,000 to his holding. Combined, these insiders have spent over $5.5 million on stock. This suggests that they are confident about the future and expect the stock to rebound.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

Getting the most of Insider Trading Data - Free Book