Andrew Hagopian, Chief Legal Officer of Xponential Fitness, Inc. (NYSE:XPOF), recently sold 26,740 shares of Class A common stock. The shares were sold at a weighted average price of $12.1834, totaling approximately $325,784. This transaction was conducted to cover tax withholding obligations related to a restricted stock unit award. Following this sale, Hagopian holds 255,764 shares directly. Additionally, the Hagopian Family Trust retains 8,800 shares indirectly.
In other recent news, Xponential Fitness, a leading boutique fitness franchisor, announced strategic financial and expansion developments. Despite a 1% decrease in consolidated revenue, the company reported a 22% increase in franchise revenue. This news was accompanied by the announcement of Pure Barre, a brand under the Xponential Fitness umbrella, planning its first studio launch in Mexico City in 2025, marking the brand's second international venture.
Lake Street Capital Markets maintained a buy rating on Xponential Fitness, despite a reduced price target influenced by earnings miss and revised guidance. The firm remains confident in Xponential's long-term prospects. Xponential Fitness also secured an additional $25 million in term loans to support its ongoing operational needs, reflecting its strategic financial decisions to maintain a robust balance sheet.
In addition, the company announced a salary increase for its Chief Legal Officer, Andrew Hagopian, as part of its ongoing efforts to ensure competitive compensatory arrangements for key executives. These recent developments reflect Xponential Fitness's focus on supporting its franchisees, fostering innovation, and expanding internationally.
InvestingPro Insights
While Andrew Hagopian's recent stock sale was primarily to cover tax obligations, it's worth examining Xponential Fitness's current financial position and market performance to provide context for investors.
According to InvestingPro data, Xponential Fitness boasts a market capitalization of $581.47 million and has demonstrated strong revenue growth of 15.41% over the last twelve months as of Q2 2024. The company's gross profit margin stands at an impressive 68.57%, reflecting efficient cost management.
However, the stock has faced some headwinds recently. InvestingPro Tips highlight that the price has fallen significantly over the last three months, with data showing a 31.96% decline in the 3-month price total return. This downturn might present an opportunity for investors, as the company is trading at a low P/E ratio relative to its near-term earnings growth potential.
Despite the recent price decline, analysts remain optimistic about Xponential Fitness's prospects. An InvestingPro Tip notes that 4 analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's future performance. Additionally, the company is expected to remain profitable this year, which could support investor sentiment.
For those considering a deeper dive into Xponential Fitness's financials and prospects, InvestingPro offers 5 additional tips and a comprehensive set of financial metrics to aid in investment decisions.
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