Is Planet Fitness (PLNT) a Rapidly Growing Business?

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 third quarter, the strategy outperformed the Russell 2000 Growth Index and returned 3.28% (net), and the index return was 0.24%. Strength in Industrials, Consumer Staples, Consumer Discretionary, and Information Technology sectors contributed to the strategy’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

TimesSquare Capital highlighted stocks like Planet Fitness, Inc. (NYSE:PLNT) in its Q3 2022 investor letter. Headquartered in Hampton, New Hampshire, Planet Fitness, Inc. (NYSE:PLNT) is a fitness center operator. On December 19, 2022, Planet Fitness, Inc. (NYSE:PLNT)  stock closed at $75.26 per share. One-month return of Planet Fitness, Inc. (NYSE:PLNT) was 2.55%, and its shares lost 12.68% of their value over the last 52 weeks. Planet Fitness, Inc. (NYSE:PLNT) has a market capitalization of $6.74 billion.

TimesSquare Capital made the following comment about Planet Fitness, Inc. (NYSE:PLNT) in its Q3 2022 investor letter:

“Fitness fared less favorably than fried food for franchises. For the former, there was a -15% decline from Planet Fitness, Inc. (NYSE:PLNT), which franchises fitness centers across the U.S. Planet Fitness reported revenues and earnings that were less than anticipated. Activities at the centers were stable, though equipment sales declined—mostly from a lack of supply from Chinese manufacturers. In addition, some marketing expenses temporarily increased, which pinched margins. We believe that both of those influences should wane; meanwhile the company’s core business was growing steadily.”

Marko Poplasen/Shutterstock.com

Planet Fitness, Inc. (NYSE:PLNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Planet Fitness, Inc. (NYSE:PLNT)  at the end of the third quarter, which was 28 in the previous quarter.

We discussed Planet Fitness, Inc. (NYSE:PLNT) in another article and shared the biggest diet/weight loss companies in the world. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 Most Boycotted Companies and Brands
• Top 25 Profitable Small Business Ideas
• 12 Stocks Insiders Are Buying

Disclosure: None. This article is originally published at Insider Monkey.