PLNT - Here's Why Planet Fitness Stock Fell 12% in May
Shares of gym chain Planet Fitness (NYSE: PLNT) fell 12.1% in May, according to data provided by S&P Global Market Intelligence . The company reported financial results for the first quarter of 2022 on May 10, which showed good operating results. However, analysts were quick to lower expectations and this appears to have pulled the share price down in May.
Planet Fitness management didn't give revenue guidance for Q1, but analysts had expected Q1 revenue of about $190 million. The company didn't quite live up to these hopes -- it reported Q1 revenue of almost $187 million. However, it notably reached 16.2 million members in Q1, up from just 15.2 million members at the end of the previous quarter.
Even with a big jump in memberships, analysts didn't seem too impressed. The majority lowered their price targets for Planet Fitness stock following the Q1 report. For example, D.A. Davidson analyst Linda Bolton Weiser lowered her price target for Planet Fitness stock by 18% to $90 per share, according to The Fly. To be clear, Weiser still believes Planet Fitness stock is a buy. But her previous price target assumed a higher valuation for the stock than what she is assuming now.
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Here's Why Planet Fitness Stock Fell 12% in May