Life Time Fitness Shares Fall On Downgrade

NEW YORK (AP) — Shares of gym operator Life Time Fitness Inc. fell Friday after an analyst said near-term membership acquisition will be challenging and downgraded the stock.

Oppenheimer analyst Brian Nagel wrote in a note to investors that the company's earnings will likely be pressured because there are indications membership acquisition for the chain "might have recently turned more challenging.

"Moderating new member sign-ups together with waning expense control opportunities are likely to weigh on the ability of Life Time Fitness to deliver meaningful earnings per share upside in coming quarters," he wrote.

He downgraded the company to "Perform" from "Outperform."

Shares fell $1.88, or 6.9 percent, to $25.40 during afternoon trading. The stock has traded between $7.07 and $34 over the past year.