Town Sports International (CLUB) Cut to Strong Sell at Zacks Investment Research

Zacks Investment Research cut shares of Town Sports International (NASDAQ:CLUB) from a hold rating to a strong sell rating in a report released on Thursday morning.

According to Zacks, “TOWN SPORTS INTERNATIONAL, INC. health club company is the largest in the Northeastern United States. TSI owns and operates the Sports Clubs Network of clubs, which includes New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs. There are also three locations in Switzerland: the Forum and the Joggeli Fitness Clubs in Basel and the Luxor Club in Zurich. All Sports Clubs locations offer a multitude of options for everyone, including a wide range of group exercise and fitness programs. Select facilities also offer racquet sports, pools, basketball courts and other recreational activities. All Clubs are fully equipped with tons of strength training equipment, cardiovascular machines and other exercise equipment. Additional services such as personal training, massage, steam room and sauna, Sports Clubs for Kids and fitness assessments are also available. “

Other research analysts have also recently issued research reports about the company. ValuEngine cut Town Sports International from a buy rating to a hold rating in a research report on Tuesday, September 4th. Imperial Capital decreased their price target on Town Sports International from $13.00 to $11.00 and set an outperform rating on the stock in a research report on Tuesday, October 30th. Finally, BidaskClub cut Town Sports International from a strong-buy rating to a buy rating in a research report on Friday, August 31st. One analyst has rated the stock with a sell rating and three have assigned a buy rating to the company’s stock. Town Sports International presently has a consensus rating of Buy and an average price target of $11.00.

CLUB stock traded up $0.03 during trading hours on Thursday, hitting $7.72. 150,840 shares of the stock were exchanged, compared to its average volume of 157,056. The stock has a market capitalization of $209.85 million, a price-to-earnings ratio of -45.41 and a beta of 2.31. Town Sports International has a 12 month low of $5.45 and a 12 month high of $14.85.

Town Sports International (NASDAQ:CLUB) last issued its quarterly earnings results on Thursday, October 25th. The company reported ($0.15) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.02) by ($0.13). Town Sports International had a negative return on equity of 1.31% and a net margin of 4.32%. The company had revenue of $110.17 million during the quarter, compared to the consensus estimate of $110.98 million.

In related news, SVP Nitin Ajmera sold 15,728 shares of the firm’s stock in a transaction on Wednesday, August 15th. The stock was sold at an average price of $9.36, for a total value of $147,214.08. Following the transaction, the senior vice president now owns 36,258 shares in the company, valued at $339,374.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Patrick Walsh purchased 4,301 shares of the firm’s stock in a transaction that occurred on Friday, September 14th. The stock was bought at an average price of $8.80 per share, for a total transaction of $37,848.80. Following the transaction, the chief executive officer now directly owns 1,507,749 shares of the company’s stock, valued at approximately $13,268,191.20. The disclosure for this purchase can be found here. 16.00% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC boosted its stake in Town Sports International by 10.5% in the second quarter. Renaissance Technologies LLC now owns 2,533,000 shares of the company’s stock valued at $36,855,000 after buying an additional 241,200 shares in the last quarter. Alambic Investment Management L.P. boosted its stake in Town Sports International by 31.3% in the second quarter. Alambic Investment Management L.P. now owns 85,708 shares of the company’s stock valued at $1,247,000 after buying an additional 20,430 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in Town Sports International by 12,229.5% in the first quarter. JPMorgan Chase & Co. now owns 107,267 shares of the company’s stock valued at $815,000 after buying an additional 106,397 shares in the last quarter. EAM Investors LLC boosted its stake in Town Sports International by 70.4% in the second quarter. EAM Investors LLC now owns 158,526 shares of the company’s stock valued at $2,307,000 after buying an additional 65,480 shares in the last quarter. Finally, Acadian Asset Management LLC boosted its stake in Town Sports International by 75.4% in the second quarter. Acadian Asset Management LLC now owns 627,337 shares of the company’s stock valued at $9,127,000 after buying an additional 269,701 shares in the last quarter. 70.73% of the stock is currently owned by institutional investors and hedge funds.

About Town Sports International

Town Sports International Holdings, Inc, together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment.

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