Life Time Group (NYSE:LTH) Sets New 12-Month High - Time to Buy?

Key Points

• Life Time Group hit a new 52-week high, with shares trading as high as $37.48. The move comes as investors continue to bid up the stock despite limited volume in the session.
• Recent analyst sentiment remains mostly positive, with several firms raising price targets and maintaining buy/outperform ratings. The consensus rating is “Moderate Buy,” with an average price target of $40.80.
• The company’s latest earnings beat expectations, reporting $0.42 EPS versus $0.39 expected and revenue of $788.7 million, up 11.7% year over year. However, insiders have been selling shares, including two notable recent transactions.

Shares of Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) hit a new 52-week high on Monday . The stock traded as high as $37.48 and last traded at $36.46, with a volume of 456 shares. The stock had previously closed at $36.92.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on LTH. Royal Bank Of Canada lifted their target price on shares of Life Time Group from $38.00 to $43.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. Jefferies Financial Group reaffirmed a "buy" rating and set a $41.00 price objective on shares of Life Time Group in a research report on Tuesday, May 5th. KeyCorp initiated coverage on Life Time Group in a report on Thursday, March 12th. They issued an "overweight" rating and a $40.00 target price on the stock. Mizuho increased their target price 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. Finally, Zacks Research lowered Life Time Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Life Time Group has an average rating of "Moderate Buy" and a consensus price target of $40.80.

Life Time Group Price Performance

The firm has a 50-day moving average of $31.37 and a 200-day moving average of $28.75. 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 $8.34 billion, a P/E ratio of 21.99, a PEG ratio of 1.52 and a beta of 1.55.

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

Insider Buying and Selling

In related news, EVP Parham Javaheri sold 62,900 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $31.80, for a total value of $2,000,220.00. Following the sale, the executive vice president owned 246,574 shares in the company, valued at approximately $7,841,053.20. This trade represents a 20.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jimena Almendares sold 40,589 shares of Life Time Group stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $33.59, for a total transaction of $1,363,384.51. Following the completion of the sale, the director directly owned 36,983 shares of the company's stock, valued at approximately $1,242,258.97. This trade represents a 52.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 27,876,110 shares of company stock worth $854,609,979 in the last three months. 13.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Life Time Group

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in Life Time Group by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 13,643,761 shares of the company's stock valued at $362,651,000 after acquiring an additional 143,487 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Life Time Group by 15.2% in the first quarter. Dimensional Fund Advisors LP now owns 8,090,037 shares of the company's stock worth $217,929,000 after purchasing an additional 1,068,208 shares during the last quarter. Ameriprise Financial Inc. grew its stake in shares of Life Time Group by 41.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,157,957 shares of the company's stock valued at $216,644,000 after purchasing an additional 2,091,712 shares during the period. Wellington Management Group LLP grew its stake in shares of Life Time Group by 0.6% during the 4th quarter. Wellington Management Group LLP now owns 5,863,510 shares of the company's stock valued at $155,852,000 after purchasing an additional 34,964 shares during the period. Finally, Bank of America Corp DE increased its position in shares of Life Time Group by 102.1% during the 3rd quarter. Bank of America Corp DE now owns 4,268,011 shares of the company's stock valued at $117,797,000 after purchasing an additional 2,156,033 shares during the last quarter. 79.40% of the stock is currently owned by hedge funds and other institutional investors.

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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