Life Time Group (NYSE:LTH) Sets New 52-Week High - What's Next?

Key Points

• Life Time Group (NYSE:LTH) hit a new 52-week high, trading as high as $34.08 after a strong earnings report helped drive recent momentum.
• The company posted Q1 EPS of $0.42, topping estimates of $0.39, while revenue rose 11.7% year over year to $788.7 million, reinforcing the bullish case.
• Despite the rally, there has been heavy insider selling, including large disposals by directors and a major shareholder, even as Wall Street largely remains positive with a consensus Buy rating and average price target of about $40.40.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) reached a new 52-week high during trading on Tuesday . The company traded as high as $34.08 and last traded at $33.57, with a volume of 2361087 shares changing hands. The stock had previously closed at $32.34.

Key Life Time Group News

Here are the key news stories impacting Life Time Group this week:

• Positive Sentiment: Life Time Group reported quarterly EPS of $0.42, beating estimates of $0.39, while revenue rose 11.7% year over year to $788.7 million. That solid top-and-bottom-line performance is supporting the stock. MarketBeat LTH overview
• Positive Sentiment: Analysts remain constructive on LTH, with a consensus rating of “Buy” and average price target around $40.40, which may be reinforcing investor confidence. MarketBeat LTH overview
• Neutral Sentiment: The shares are trading near their 52-week high, reflecting momentum after the earnings beat, but also suggesting the market may already be pricing in much of the recent optimism. MarketBeat LTH overview
• Negative Sentiment: Multiple insiders and a major shareholder disclosed sizable stock sales, including director John G. Danhakl and major shareholder Partners Group Private Equity. Large insider dispositions can weigh on sentiment because they may signal limited near-term confidence in upside. SEC filing SEC filing
• Negative Sentiment: EVP Parham Javaheri also sold 62,900 shares, adding to the recent cluster of insider selling. SEC filing

Wall Street Analyst Weigh In

LTH has been the topic of several research reports. UBS Group restated a "buy" rating and issued a $43.00 price target on shares of Life Time Group in a research report on Thursday, March 12th. Mizuho lifted their price objective on shares of Life Time Group from $41.00 to $44.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Weiss Ratings restated a "hold (c+)" rating on shares of Life Time Group in a report on Thursday, January 22nd. Northland Securities set a $42.00 price target on shares of Life Time Group in a report on Friday, January 23rd. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $41.00 price target on shares of Life Time Group in a research report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $40.40.

Life Time Group Stock Performance

The stock has a market cap of $7.49 billion, a P/E ratio of 19.80, a PEG ratio of 1.32 and a beta of 1.50. The business has a 50 day moving average price of $27.35 and a 200 day moving average price of $27.20. The company has a quick ratio of 0.42, a current ratio of 0.53 and a debt-to-equity ratio of 0.46.

Life Time Group (NYSE:LTH - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. Life Time Group had a return on equity of 10.10% and a net margin of 12.56%.The firm had revenue of $788.70 million during the quarter, compared to analyst estimates of $787.65 million. During the same period last year, the company earned $0.39 EPS. Life Time Group's quarterly revenue was up 11.7% compared to the same quarter last year. As a group, sell-side analysts expect that Life Time Group Holdings, Inc. will post 1.47 EPS for the current year.

Insider Buying and Selling at Life Time Group

In related news, Director Stuart G. Lasher sold 50,000 shares of the firm's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $32.42, for a total value of $1,621,000.00. Following the transaction, the director owned 71,058 shares of the company's stock, valued at $2,303,700.36. This trade represents a 41.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John Kristofer Galashan sold 4,991,749 shares of Life Time Group stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $31.46, for a total transaction of $157,040,423.54. Following the sale, the director owned 16,242,383 shares of the company's stock, valued at $510,985,369.18. The trade was a 23.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 16,638,669 shares of company stock valued at $507,722,099. 13.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Life Time Group

A number of institutional investors have recently modified their holdings of LTH. Phillip James Consulting Co. purchased a new position in shares of Life Time Group during the first quarter valued at $91,000. PNC Financial Services Group Inc. grew its holdings in Life Time Group by 244.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 35,492 shares of the company's stock worth $956,000 after acquiring an additional 25,200 shares in the last quarter. Dimensional Fund Advisors LP increased its position in Life Time Group by 15.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 8,090,037 shares of the company's stock valued at $217,929,000 after purchasing an additional 1,068,208 shares during the period. Swiss National Bank increased its position in Life Time Group by 0.6% during the 1st quarter. Swiss National Bank now owns 283,700 shares of the company's stock valued at $7,643,000 after purchasing an additional 1,800 shares during the period. Finally, Bank of New York Mellon Corp raised its holdings in shares of Life Time Group by 79.0% in the 1st quarter. Bank of New York Mellon Corp now owns 862,524 shares of the company's stock valued at $23,236,000 after purchasing an additional 380,610 shares in the last quarter. 79.40% of the stock is 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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