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 twitter 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.

 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners