Xponential Fitness (NYSE:XPOF) stock is climbing higher on Wednesday as the company strikes back against a short report from Fuzzy Panda Research.
This has the company providing investors with financial information to reassure them of its business. That includes data showing that 74% of its revenue is recurring. It also points out that Q1 2023 average unit volume was $542,000. It expects franchisee unit economics with an operating margin of 25% to 30% and 40% cash on cash return.
The board of directors for Xponential Fitness includes the following statement in its short report rebuttal:
“Together, the Board of Directors and Management of Xponential denounce the misleading Report, which contains inaccurate information, and caution investors not to rely on it. The Board and Management stand firmly behind the strength of the business and health of its franchisees.”
More Defense for XPOF Stock
Evercore ISI also stepped forward to defend XPOF stock from the Fuzzy Panda Research short report. Analyst Warren Cheng argued that there was little substance behind the short report and continues to hold an “outperform” rating for the shares.
With all of this comes heavy trading of XPOF stock today. As of this writing, more than 2.5 million shares of the stock have been traded. That’s well above its daily average trading volume of about 794,000 shares.
XPOF stock is up 18.7% as of Wednesday morning but is down 17.8% since the start of the year.
Investors seeking out even more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! That includes why shares of Axsome Therapeutics (NASDAQ:AXSM), Li Auto (NASDAQ:LI), and Pinterest (NYSE:PINS) stock are moving today. You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
