Analyst: Planet Fitness Stock Is a ‘Bullish Fresh Pick’ – Schaeffer’s Investment Research

Baird maintained its “overweight” rating on PLNT

Baird named Planet Fitness Inc (NYSE:PLNT) a “bullish fresh pick” through the end of the year, and maintained its “overweight” rating on the stock. The analyst in question also noted the company could buck a cooler growth environment. At last glance, shares were up 0.8% to trade at $81.75.

The equity is trading at its highest level since May 2023, and moved back above its 20-day moving average. PLNT also toppled resistance at the $79 level, which capped a July rally. Fresh off their third-straight weekly win, shares added more than 36% over the past 12 months.

Shorts are already running for the exits, with short interest down 23.7% over the last two reporting periods. The 5.04 million shares sold short still account for 6% of Planet Fitness stock’s available float, however, suggesting there is still plenty of pessimism left to unwind.

The security’s 50-day put/call volume ratio of 5.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 93% of readings from the past year. This means puts have been more popular than usual in the options pits. Plus, per the stock’s Schaeffer’s Volatility Index (SVI) of 23%, which sits in the 1st percentile of annual readings, options players are pricing in low volatility expectations.