Is Planet Fitness Exhausted?

Ed Ponsi

On Wednesday, the governors of New York, New Jersey, and Connecticut announced restrictions for travelers from Texas, Florida, and other U.S. states that are seeing spikes in coronavirus infections. Visitors from those states are required to quarantine for 14 days. 

That news rocked airline and hospitality stocks, and help push the major stock indices lower. By noon, the Dow Jones Industrial Average had fallen by 800 points before bouncing off its intraday lows. 

New York's Governor Cuomo went a step further, saying gyms in that state might not reopen until there is a vaccine. "There are some things that don't fit neatly into a phase that are going to require further study," he said. 

That could be bad news for Planet Fitness (PLNT), which operates 1500 fitness centers. Over 50 of those centers are located in New York state, and would be directly affected by the decision. 

What will happen to shares of Planet Fitness? Let's go to the charts to find out. 

PLNT

Planet Fitness has formed a symmetrical triangle (converging black lines), and is struggling to remain above its 200 day moving average (red line). The stock's MACD indicator flashed a sell signal on June 11th (red arrow). 

Overall, these signals paint a bearish picture, which is unsurprising when we consider today's news. 

One winner from these measures could be home fitness stock Peloton (PTON). I analyzed that stock earlier this week. My target price for Peloton is $70. 

                     Want to learn to read and analyze charts like Ed? CLICK HERE!

Comments (34)
No. 1-8
IkayakBR
IkayakBR

If you look at simulations of air circulation into a room, gyms or any other closed environments are the perfect place for pathogens to spread very easily. In the gym you would have the aggravation aspect of forced air as you exhale during extraneous activity, which accelerate the speed and increase the amount of particles in the air. Then when you put this into the equation of number of particles in the air * amount of time being exposed, the situation gets complicated. Even if nobody spends more than 30 minutes in the gym, you still have the staff having exposure to several hours a day - which exponentially raises risk of infection. So wearing a mask could reduce the pathogens, but the practical aspect of having somebody do a hard workout on a mask has its own issues and risks. I think for Gyms the solution is transform their parking lots into working out areas. they probably know what percentage of people go for classes vs equipment, so they can tailor. Tough situation.

Ira_R
Ira_R

This is a CLEAR CASE of GOVERNMENT OVERREACH and MANIPULATION! You are being told to STAY HOME if you’re a law abiding citizen. Don’t go to the gym, or a restaurant, or a sports event. Don’t challenge authority. KNOW YOUR PLACE!

But if you’re burning buildings, toppling statues, and beating people who disagree with you, HEY IT’S ALL GOOD!

Drpencil
Drpencil

Mask at the gym!?? F*CCCKKK THAT!!!

Nevercommentagain
Nevercommentagain

Resident of IN. The local PF is still open 24/7 as usual, with the restrictions on how many people are allowed in at a given time. It is PF though, so most people that have memberships only hold them still because of the "what-if" mentality relating to their New Year's Resolution that they have annually.

CrabtownUSA
CrabtownUSA

I blame CDC Fauci and Birx for single handedly destroying thousands of businesses. This is a monumental misunderstanding of science and epidemiology and statistical prognostication. Planet Fitness was a great business model. My PF is not going to last. We no longer have the equipment nor are we keeping the 24 hour standard. And no one cares.

save_animals_
save_animals_

went to my local PF in Pa today and now they require you wear a mask when working out wasn't like that when they reopened sooo stupid

Shakee
Shakee

PF must be worried. My local club 92376 in CA is ignoring the Governor's requirements to wear masks while walking around the gym.
Giving in to social pressure for corporate greed.

Gym-rat
Gym-rat

Been hearing that the Texas PF clubs may have to close again due to the spike ?