Torque Asset Management Buys $4 Million of Planet Fitness Amid Stock's 54% Decline in 2026
Key Points
Bought 49,500 shares, estimated trade size $4.35 million based on quarterly average price.
Quarter-end position value increased by $3.68 million with the new shares added during the reporting period.
Transaction value represented 1.71% of reportable 13F assets under management.
Post-trade, holds 49,500 shares valued at $3.68 million.
New stake accounts for 1.45% of fund AUM, which places it outside the fund's top five holdings.
- 10 stocks we like better than Planet Fitness ›
What happened
According to its SEC filing dated May 15, 2026, Torque Asset Management LLC established a new stake in Planet Fitness (NYSE:PLNT), acquiring 49,500 shares. The estimated transaction value was $4.35 million based on the average unadjusted closing price for the quarter ended March 31, 2026. The position's quarter-end value, reflecting both the purchase and price changes during the period, was $3.68 million.
What else to know
This was a new position; the stake represented 1.45% of the fund's 13F assets under management at quarter-end.
- Top five holdings after the filing were:
- Amazon: $48.97 million (19.3% of AUM)
- Meta Platforms: $42.76 million (16.8% of AUM)
- Okta: $25.10 million (9.9% of AUM)
- Procore Technologies: $24.70 million (9.7% of AUM)
- Mastercard: $24.56 million (9.7% of AUM)
As of May 20, 2026, Planet Fitness shares were trading at $50.24, down 51.6% over the past year and underperforming the S&P 500 by 76 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.38 billion |
| Net Income (TTM) | $228.79 million |
| Price (as of market close 2026-05-20) | $50.24 |
| One-Year Price Change | (51.64%) |
Company Snapshot
- Planet Fitness offers gym memberships, fitness services, and equipment sales, with revenue primarily derived from franchise fees, corporate-owned stores, and equipment sales to franchisees.
- The company operates a hybrid business model combining franchising and direct ownership, generating income through ongoing royalties, membership fees, and equipment distribution.
- Its primary customers are value-conscious individuals seeking affordable fitness solutions, as well as franchisees operating Planet Fitness-branded locations in the U.S. and select international markets.
Planet Fitness, Inc. is a leading operator and franchisor of fitness centers that emphasizes a high-value, low-cost gym experience. The company leverages its extensive franchise network and corporate-owned locations to achieve scale and consistent cash flow. Its competitive edge lies in its accessible pricing, national brand recognition, and diversified revenue streams across franchise and equipment sales.
What this transaction means for investors
Over the last decade, Planet Fitness stock rose more than sixfold, only to plummet by more than 50% in 2026. While the stock has steadily declined over the last year, this decline was exacerbated by a 30% drop in a single day in May, following the company’s Q1 earnings report. However, though the earnings report wasn’t awesome, the scale of PLNT stock’s decline might be exaggerated at this point.
During the quarter, the company battled through some self-inflicted errors that may have alienated its core “beginner fitness” customer base. Making matters worse, the company pulled its three-year guidance of 10% to 15% annualized sales growth and delayed raising prices on its premium Black Card, after its Basic Card price increase from $10 to $15 may have spurred Q1’s slowdown.
That said, Planet Fitness still grew same-store sales by 3.5% in Q1 and expects SSS to remain positive in 2026, so this isn’t a full-on tailspin for PLNT stock just yet -- especially as the company opens another 180 to 190 gyms in 2026. Currently trading at just 16 times FCF and 16 times forward earnings, Planet Fitness stock doesn’t need to deliver double-digit growth in perpetuity to beat the market. Torque Asset Management’s purchase of PLNT stock is an intriguing “buy-the-dip” opportunity, and I will be watching Planet Fitness closely to see how its turnaround in growth progresses throughout 2026.
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Josh Kohn-Lindquist has positions in Mastercard. The Motley Fool has positions in and recommends Amazon, Mastercard, Meta Platforms, Okta, and Planet Fitness. The Motley Fool recommends Procore Technologies. The Motley Fool has a disclosure policy.
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