Xponential Fitness plunges to record low after disclosure of SEC request

Xponential Fitness

11/12/2023 18:56

** Shares of Xponential Fitness Inc  XPOF.N  drops nearly 19%,
plunging to record low of $8.62 on Mon, after disclosing a
recently received request from Securities and Exchange
Commission to provide certain documents
  ** Stock is on track for its biggest daily pct decline since
June this year and was last down 12.3% at $9.30
  ** Co says it was contacted by SEC on Dec. 5 and it "intends
to cooperate fully with the SEC in this matter"
  ** "The Company is making this disclosure at this time in
order to provide an update regarding a press inquiry about the
SEC contacting the Company, whereby the Company responded to the
press inquiry before it had actually been contacted by the SEC,"
according to a regulatory filing
  ** Co says it would provide no further information "until it
believes there is a material development that warrants public
disclosure"
  ** A Bloomberg report last week says XPOF deliberately misled
individual investors about the financial strength of its
franchisees, including brands such as Pure Barre, CycleBar, Club
Pilates, Row House, Rumble Boxing
  ** Median PT of 13 analysts covering XPOF is $27, down from
$28 a month ago, and their current recommendation is "buy", per
LSEG data
  ** XPOF was the subject of a short-seller attack by Fuzzy
Panda Research, claiming co was hiding that its brands and
franchisees were struggling. The stock plunged 37% on Jun 27
after the report
  ** With today's move, XPOF is now down ~60% YTD
    

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))