“WCM Investment Management LLC Reduces Holdings in Planet Fitness Despite Strong Earnings Report – Investors Beware!”

Posted May 2, 2023 3:51 pm by

“WCM Investment Management LLC Reduces Holdings in Planet Fitness Despite Strong Earnings Report – Investors Beware!”

Despite Planet Fitness’ positive earnings report, New York-based investment firm WCM Investment Management LLC has revealed that it trimmed its holdings in the popular fitness center. According to a recent filing with the Securities and Exchange Commission (SEC), WCM Investment Management LLC sold 5,067 shares of Planet Fitness stock, reducing its stake in the company by 2.2% during Q4 of 2020. The company now owns approximately $17.6 million worth of Planet Fitness, equivalent to 223,735 shares.

Planet Fitness has gained popularity for its budget-friendly gym facilities, which cater to customers seeking affordable and accessible fitness options. In its latest quarterly earnings data released on February 23, 2021, Planet Fitness reported $281.30 million in revenue for Q4, surpassing analyst estimates of $271.48 million. The company also reported an earnings-per-share (EPS) figure of $0.53 for the same period, which exceeded consensus estimates by $0.06.

Despite market turbulence caused by the COVID-19 pandemic last year, Planet Fitness exhibited strong financials, making it a low-risk investment option for those interested in the health and fitness sector. Analysts predict an approximate EPS rate of 2.2% for the company’s current fiscal year, indicating a continuation of solid performances for this exemplary business model.

Consumers demonstrated their eagerness to return to indoor exercising in May and June of last year, spurring demand for budget-friendly options such as Planet Fitness. With the current bullish outlook for Planet Fitness stock, WCM Investment Management LLC’s decision to trim its holdings may seem questionable to investors. Future quarterly reports will be the gauge for whether or not this move was advantageous for the company’s customers.

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