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

Town Sports International (NASDAQ:CLUB) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued on Thursday.

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. “

Several other equities analysts have also recently issued reports on CLUB. ValuEngine cut shares of Town Sports International from a “strong-buy” rating to a “buy” rating in a research report on Friday, August 3rd. Imperial Capital decreased their price target on shares of Town Sports International from $13.00 to $11.00 and set an “outperform” rating for the company in a research report on Tuesday. Finally, BidaskClub cut shares of 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 given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $11.00.

Shares of NASDAQ CLUB opened at $7.72 on Thursday. Town Sports International has a 52-week low of $5.45 and a 52-week high of $14.85. The company has a market capitalization of $209.30 million, a price-to-earnings ratio of -45.41 and a beta of 2.31.

Town Sports International (NASDAQ:CLUB) last announced its quarterly earnings results on Thursday, October 25th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.02) by ($0.13). Town Sports International had a net margin of 4.32% and a negative return on equity of 1.31%. The business had revenue of $110.17 million during the quarter, compared to analyst estimates of $110.98 million. Equities research analysts predict that Town Sports International will post 0.15 earnings per share for the current year.

In other news, SVP Nitin Ajmera sold 15,728 shares of the stock in a transaction on Wednesday, August 15th. The shares were sold at an average price of $9.36, for a total transaction of $147,214.08. Following the completion of the sale, the senior vice president now directly owns 36,258 shares in the company, valued at $339,374.88. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Patrick Walsh acquired 4,301 shares of the firm’s stock in a transaction dated Friday, September 14th. The shares were purchased at an average price of $8.80 per share, with a total value of $37,848.80. Following the completion of the transaction, the chief executive officer now owns 1,507,749 shares of the company’s stock, valued at $13,268,191.20. The disclosure for this purchase can be found here. Corporate insiders own 16.00% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the company. Renaissance Technologies LLC increased its position in shares of Town Sports International by 10.5% during the second quarter. Renaissance Technologies LLC now owns 2,533,000 shares of the company’s stock worth $36,855,000 after buying an additional 241,200 shares during the period. Alambic Investment Management L.P. boosted its stake in Town Sports International by 31.3% during the second quarter. Alambic Investment Management L.P. now owns 85,708 shares of the company’s stock worth $1,247,000 after acquiring an additional 20,430 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in Town Sports International by 12,229.5% during the first quarter. JPMorgan Chase & Co. now owns 107,267 shares of the company’s stock worth $815,000 after acquiring an additional 106,397 shares in the last quarter. EAM Investors LLC boosted its stake in Town Sports International by 70.4% during the second quarter. EAM Investors LLC now owns 158,526 shares of the company’s stock worth $2,307,000 after acquiring an additional 65,480 shares in the last quarter. Finally, Acadian Asset Management LLC boosted its stake in Town Sports International by 75.4% during the second quarter. Acadian Asset Management LLC now owns 627,337 shares of the company’s stock worth $9,127,000 after acquiring an additional 269,701 shares in the last quarter. Institutional investors own 70.73% of the company’s stock.

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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