Shares of Xponential Fitness , the parent company of CycleBar and Pure Barre fitness studios, bounced around in trading Monday after the company announced late Friday that CEO Anthony Geisler would be suspended indefinitely and would become an inactive member of the board.
Xponential Fitness, which owns more than 3,000 boutique fitness and wellness studios globally, also said it received notice last week of a probe by the U.S. Attorney's Office for the Central District of California.
Piper Sandler maintains a hold rating on Xponential Fitness stock, but lowered its price target to $9 from $12.
Xponential Fitness' leadership had previously disclosed an SEC investigation in December, which alleged that the company provided false and/or misleading information to investors, including unit volume metrics and franchise closures.
"The Company intends to continue cooperating with the SEC and intends to cooperate with the USAO," Xponential Fitness said in a press release announcing the executive changes.
Persons:
Anthony Geisler, Brenda Morris, Korinne Wolfmeyer, Piper Sandler
Organizations:
U.S, Attorney's, Central, Central District of, SEC, Fitness
Locations:
CycleBar, Barre, Central District, Central District of California