Planet Fitness Stock Is Crushing Short Sellers

Technical and sentiment data hints at more upside for PLNT shares

Mar 1, 2018 at 1:01 PM
facebook X logo linkedin

Short sellers seem to have made a major mistake by picking on Planet Fitness Inc. (NYSE:PLNT). The stock earlier this week touched a record high of $38.32 after the company once again blew away analysts' estimates in the earnings booth, posting a top- and bottom-line beat, with same-store sales growth increasing year-over-year. And just for good measure, the fitness chain issued a 2018 outlook that was way above expectations.

PLNT shares jumped 12.2% in the subsequent session, and this follows a 17.4% post-earnings surge back in November. Looking back further, the equity has rallied from below $12 two years ago to its current perch of $37.53, only closing one quarter in the red during that time.

Despite the fantastic fundamental and technical performance, short sellers control 9.2% of the security's float, which equates to 6.3 days' worth of buying power, based on average daily volumes. And this is even after a multi-month period of short covering that began back in September. In fact, data from Schaeffer's Senior Quantitative Analyst Rocky White shows short interest remains 47% higher from where it was last year.

plnt stock price

It's likely many Planet Fitness short sellers are facing large losses and could be feeling the pressure to cover -- especially after another huge quarter from the company. Consider PLNT stock a strong candidate for a prolonged short-squeeze event.



Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI