Planet Fitness (PLNT) Declined After Guidance Cut

Fred Alger Management , an investment management company, released its "Alger Weatherbie Specialized Growth Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here . U.S. equities experienced a strong recovery in Q2 2026, with the S&P 500 Index gaining 15.2%, marking its best quarter since 2020. A ceasefire between the United States and Iran and accelerated investment in artificial intelligence (AI) regained market optimism in the quarter, leading the Information Technology and Industrials sectors upward, and Energy and Utilities lagged because of falling oil and gas prices. In June, the Federal Reserve maintained steady interest rates, but the meeting had a hawkish tone. As AI transitions into its agentic phase, opportunities are identified within sectors adopting the technology. The Weatherbie Specialized Growth Fund's Class A shares outperformed the Russell 2500 Growth Index in the quarter. The Industrials and Information Technology sectors contributed to the relative performance, whereas Financials and Consumer Discretionary sectors detracted. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Alger Weatherbie Specialized Growth Fund mentioned stocks like Planet Fitness, Inc. (NYSE: PLNT ). Planet Fitness, Inc. (NYSE:PLNT) a US-based franchise that operates fitness centers under the Planet Fitness brand, detracted from the Fund's performance during the quarter. On July 20, 2026, Planet Fitness, Inc. (NYSE:PLNT) closed at $55.25 per share. One-month return of Planet Fitness, Inc. (NYSE:PLNT) was 6.58%, and its shares lost 51.34% over the past 52 weeks. Planet Fitness, Inc. (NYSE:PLNT) has a market capitalization of $4.38 billion.

Alger Weatherbie Specialized Growth Fund stated the following regarding Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2026 investor update:

"Planet Fitness, Inc. (NYSE:PLNT) is one of the largest fitness club franchisors in the world, operating a budget-friendly gym model built around low monthly dues, broad accessibility, and a welcoming brand position. We believe the company benefits from a capital-light franchise structure, strong brand recognition, and a meaningful long-term opportunity to expand its club base both in the U.S. and internationally. During the quarter, shares detracted from performance after the company lowered both its revenue and earnings outlook, as member sign-ups fell short of internal expectations following a recent brand repositioning. Sentiment was also pressured by management transition concerns, including the departure of the Chief Financial Officer, as well as broader pressure on discretionary consumer spending."

Planet Fitness, Inc. (NYSE:PLNT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 38 hedge fund portfolios held Planet Fitness, Inc. (NYSE:PLNT) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the potential of Planet Fitness, Inc. (NYSE:PLNT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

In another article , we covered Planet Fitness, Inc. (NYSE:PLNT) and shared Alger Weatherbie Specialized Growth Fund's insights on the company in the first quarter. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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