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Earnings Preview: Planet Fitness Inc

Planet Fitness Inc (NYSE:PLNT) is slated for its first turn in the earnings confessional Wednesday evening

Sep 1, 2015 at 2:25 PM
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Exercise concern Planet Fitness Inc (NYSE:PLNT) is slated to release its inaugural earnings report after the bell on Wednesday. The stock has picked up some momentum heading into the event, thanks to a round of bullish analyst attention yesterday. Most notably, Jefferies -- which initiated coverage with a "buy" rating -- set a $25 price target for PLNT. 

Even with the shares dodging today's broad-market sell-off -- up 5.6% to $18.81 -- Jefferies' price target represents a 33% premium. Moreover, such a move would mark a new all-time high for PLNT, which topped out at $20.68 on Aug. 10. The shares hit the Street on Aug. 6, opening at $14.50. 

While options volume has been extremely light so far on the newcomer, PLNT's near-term at-the-money (ATM) straddle is pricing in a 16.3% swing. So far leading up to the event, call buying has had the edge, with Planet Fitness Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio standing at 1.46. 
 

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