Xponential Fitness stock price swings after CEO ousted | Wilnesh News

shares Exponential FitnessTrading rebounded on Monday after the parent company of CycleBar and Pure Barre fitness studios announced late Friday that Chief Executive Anthony Geisler would be suspended indefinitely and would become an inactive member of the board of directors.

The company’s shares have plunged nearly 30% since Friday, with its market value falling below $500,000. The stock initially fell another 10% on Monday morning, but later rebounded into positive territory.

Brenda Morris, a board member since 2019, will serve as interim CEO.

Exponential FitnessThe company, which owns more than 3,000 boutique fitness and wellness studios around the world, also said it received notice of the investigation last week from the U.S. Attorney’s Office for the Central District of California.

“In terms of the investigation, it sounds like the information being requested is largely modeled on information previously disclosed by the SEC,” said Piper Sandler analyst Korinne Wolfmeyer. Piper Sandler maintained its hold rating on Xponential Fitness stock but added The price target was lowered to $9 from $12. As of Monday, shares were trading at about $9 a share.

Xponential Fitness leadership previously disclosed an SEC investigation in December alleging that the company provided false and/or misleading information to investors, including unit count metrics and franchise closures. Shareholders filed a class-action lawsuit in February seeking financial damages over the allegations against the company.

“The company intends to continue to cooperate with the SEC and intends to cooperate with the USAO,” Xponential Fitness said in a statement. Press release Announcing administrative changes.

Xponential Fitness also reiterated its full-year 2024 guidance previously announced on May 2.

The company did not respond to CNBC’s request for comment on the investigation.

“We feel that we are pleased that the financial goals remain intact and that Ms. Morris appears to be the right leader to serve in an interim role,” Wolfmeyer said.

However, Wolfmeier noted that the company remains cautious.

“Even after Friday’s pullback, we have a hard time supporting the name,” she added.