Planet Fitness Stock Price Target Increased by Royal Bank of Canada

Royal Bank of Canada recently raised its price target for Planet Fitness (NYSE:PLNT) shares from $110.00 to $120.00 in a report published on Tuesday. This adjustment comes alongside an "outperform" rating for the stock, suggesting analysts expect positive performance ahead. The new target indicates a potential upside of approximately 18.44% from the current trading price of the stock.

Aside from Royal Bank of Canada, other financial institutions have also revised their target prices for Planet Fitness. Bank of America increased its target from $95.00 to $100.00 on September 6, assigning a "buy" rating. Similarly, JPMorgan Chase & Co. raised its price objective from $80.00 to $90.00 while giving an "overweight" rating in a report on November 8. Meanwhile, Morgan Stanley lifted their price target from $84.00 to $89.00 with an "overweight" rating earlier that same month. Robert W. Baird also raised their target, moving it from $92.00 to $110.00 and maintaining an "outperform" rating.

In addition, Deutsche Bank Aktiengesellschaft initiated coverage on Planet Fitness on September 27, designating a "hold" rating with a price target of $71.00. Overall, the consensus from five analysts currently holds a "hold" rating, while eleven have given a "buy" rating and one has assigned a "strong buy" rating. The average price target according to MarketBeat stands at $94.00, reflecting a moderate buy outlook.

Recent Stock Performance

On Tuesday, shares of Planet Fitness traded up by $2.30, reaching $101.32 during mid-day trading. The trading volume was 123,481 shares, which is lower than the average volume of 1,483,228 shares. Currently, the stock holds a fifty-day simple moving average of $90.66 and a 200-day moving average of $81.64. Planet Fitness's stock price has fluctuated within a 52-week range of $54.35 to $102.88, showing significant growth.

For context, Planet Fitness recently released its quarterly earnings on November 7, reporting earnings per share (EPS) of $0.64, exceeding analyst expectations of $0.57. The company achieved a net margin of 14.23% and posted revenue of $292.20 million for the quarter, surpassing estimates of $283.79 million. This represents a year-over-year revenue growth of 5.3% compared to the same quarter last year.

Insider Trading Activity

In related news, insider Jennifer Simmons sold 11,453 shares of Planet Fitness on November 14 at an average price of $96.20, totaling about $1.1 million. This transaction reflects a decrease of 37.47% in her position, leaving her with 19,110 shares now valued at approximately $1.84 million. Currently, insider ownership accounts for about 5.94% of the company's total stock.

Institutional Investment Trends

Institutional investment in Planet Fitness has seen changes recently. LRI Investments LLC increased its stake in the company by 61.2% during the second quarter, while Quarry LP boosted its holdings by 174.7%. V Square Quantitative Management LLC also increased its investment significantly by 69.8% in the third quarter. Additionally, GAMMA Investing LLC raised its position by an impressive 396.9%. Overall, institutional investors hold a substantial 95.53% of Planet Fitness shares.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under its own brand. The company operates in various segments, including Franchise, Corporate-Owned Stores, and Equipment. It features franchises across the United States, Puerto Rico, Canada, Panama, Mexico, and Australia.

This news highlights the positive outlook for Planet Fitness shares following recent upward revisions in their target prices by various financial analysts. Investors are keenly observing how the stock performs in the coming months, particularly in light of its strong earnings and growth potential.

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