Life Time Group (NYSE:LTH) Reaches New 12-Month High - Still a Buy?

Key Points

• Life Time Group shares hit a new 52-week high on Tuesday, trading as high as $41.81 and closing near that level, extending a strong recent run.
• Wall Street remains mostly constructive on the stock, with analysts holding a consensus “Moderate Buy” rating and an average price target of $44.00; several firms recently raised their targets, including Oppenheimer to $60.
• The company’s latest earnings topped expectations, with Q1 EPS of $0.42 versus $0.39 expected and revenue growth of 11.7% year over year, though there has also been notable insider selling in recent months.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) shares reached a new 52-week high during trading on Tuesday . The stock traded as high as $41.81 and last traded at $41.6210, with a volume of 1126128 shares changing hands. The stock had previously closed at $41.13.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on LTH shares. Northland Securities increased their price objective on Life Time Group from $43.00 to $48.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 24th. Mizuho upped their price target on Life Time Group from $41.00 to $44.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $37.00 price target on shares of Life Time Group in a report on Wednesday, May 6th. Oppenheimer boosted their price objective on shares of Life Time Group from $43.00 to $60.00 and gave the company an "outperform" rating in a research note on Thursday, June 25th. Finally, Zacks Research downgraded shares of Life Time Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $44.00.

Life Time Group Stock Up 0.8%

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.42 and a current ratio of 0.53. The firm has a market capitalization of $9.23 billion, a price-to-earnings ratio of 24.23, a PEG ratio of 1.68 and a beta of 1.51. The firm has a fifty day moving average price of $34.02 and a 200 day moving average price of $29.82.

Life Time Group (NYSE:LTH - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $788.70 million during the quarter, compared to analysts' expectations of $787.65 million. Life Time Group had a return on equity of 10.10% and a net margin of 12.56%.Life Time Group's revenue was up 11.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.39 earnings per share. As a group, sell-side analysts expect that Life Time Group Holdings, Inc. will post 1.48 EPS for the current fiscal year.

Insiders Place Their Bets

In other Life Time Group news, Director John Kristofer Galashan sold 4,991,749 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $31.46, for a total value of $157,040,423.54. Following the completion of the transaction, the director directly owned 16,242,383 shares of the company's stock, valued at approximately $510,985,369.18. This trade represents a 23.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, major shareholder Partners Group Private Equity sold 747,178 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $31.46, for a total value of $23,506,219.88. Following the completion of the transaction, the insider owned 2,431,203 shares of the company's stock, valued at approximately $76,485,646.38. This represents a 23.51% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 27,943,861 shares of company stock worth $857,228,555. 13.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Life Time Group

A number of hedge funds and other institutional investors have recently made changes to their positions in LTH. GAMMA Investing LLC increased its position in Life Time Group by 144.5% during the fourth quarter. GAMMA Investing LLC now owns 1,220 shares of the company's stock worth $32,000 after purchasing an additional 721 shares during the last quarter. Wexford Capital LP acquired a new stake in Life Time Group in the third quarter valued at approximately $40,000. EverSource Wealth Advisors LLC increased its stake in Life Time Group by 201.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,499 shares of the company's stock worth $45,000 after buying an additional 1,002 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in shares of Life Time Group during the fourth quarter worth about $73,000. Finally, Versant Capital Management Inc raised its position in shares of Life Time Group by 286.7% in the 2nd quarter. Versant Capital Management Inc now owns 1,806 shares of the company's stock valued at $74,000 after purchasing an additional 1,339 shares in the last quarter. Hedge funds and other institutional investors own 79.40% of the company's stock.

About Life Time Group

Life Time Group NYSE: LTH is a premier operator of health, fitness and lifestyle centers across North America. The company's core business encompasses the development, ownership and management of premium athletic resorts that integrate state-of-the-art fitness facilities, group exercise studios, indoor and outdoor pools, running tracks, and spa and salon services. In addition to its brick-and-mortar clubs, Life Time offers a digital platform featuring on-demand and live-streamed workouts, personalized training programs and nutrition guidance, enabling members to pursue their wellness goals both at home and on the go.

Founded in 1992 and headquartered in Chanhassen, Minnesota, Life Time has grown from a single Minnesota health club into a network of more than 160 locations across the United States and Canada.

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