General Concerns on Consumer-Focused Businesses Affected Planet Fitness (PLNT) - InvestingChannel

General Concerns on Consumer-Focused Businesses Affected Planet Fitness (PLNT)

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned -3.67% (net), compared to -7.32% return for the Russell 2000 Growth Index. Year-to-date the fund returned 11.56% (net) compared to 9.59% return for the index. The third quarter saw a decline in global equities markets, but they remained positive YTD. Value has generally outperformed Growth, as demonstrated by the style factors and market indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.

TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Planet Fitness, Inc. (NYSE:PLNT) in the third quarter 2023 investor letter. Headquartered in Hampton, New Hampshire, Planet Fitness, Inc. (NYSE:PLNT) is a fitness center operator. On December 6, 2023, Planet Fitness, Inc. (NYSE:PLNT) stock closed at $68.57 per share. One-month return of Planet Fitness, Inc. (NYSE:PLNT) was 8.95%, and its shares lost 10.55% of their value over the last 52 weeks. Planet Fitness, Inc. (NYSE:PLNT) has a market capitalization of $6.044 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy made the following comment about Planet Fitness, Inc. (NYSE:PLNT) in its Q3 2023 investor letter:

“Another sale was Planet Fitness, Inc. (NYSE:PLNT), which franchises fitness centers across the U.S. Its shares had been weak earlier in the quarter and we trimmed ahead of its earnings report in early August given general concerns on consumer-focused businesses. While it subsequently reported better-than-expected trailing results, Planet announced a slower future pace for new store openings. Then in September, the company’s board discharged its CEO over differing views on how best to move the company forward. In our follow-up discussion with the CFO and interim CEO, we were not convinced a positive change was near, so we sold our remaining position as the stock fell -28% during the partial quarter.”

A person in a fitness studio, demonstrating the latest workout routine powered by the company.

Planet Fitness, Inc. (NYSE:PLNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Planet Fitness, Inc. (NYSE:PLNT)at the end of third quarter which was 23 in the previous quarter.

We discussed Planet Fitness, Inc. (NYSE:PLNT) in another article and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.

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