Life Time Group (NYSE:LTH) Shares Gap Down - Should You Sell?

Key Points

• Life Time Group shares gapped down at the open, falling from a prior close of $32.95 to $31.50 before trading near $31.75.
• Despite the drop, analysts remain broadly bullish: the stock has a consensus “Buy” rating with an average price target of $40.50, and several firms recently reiterated or raised targets.
• The company’s latest earnings were solid, with EPS of $0.42 beating estimates and revenue of $788.7 million slightly topping forecasts; however, recent insider selling by top executives was notable.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $32.95, but opened at $31.50. Life Time Group shares last traded at $31.7540, with a volume of 902,652 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Northland Securities set a $42.00 target price on shares of Life Time Group in a research report on Friday, January 23rd. Zacks Research upgraded shares of Life Time Group from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 24th. Guggenheim restated a "buy" rating and set a $36.00 target price on shares of Life Time Group in a research report on Friday, January 23rd. Weiss Ratings reiterated a "hold (c+)" rating on shares of Life Time Group in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company upped their price target on shares of Life Time Group from $37.00 to $38.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Life Time Group has a consensus rating of "Buy" and an average price target of $40.50.

Life Time Group Price Performance

The firm's fifty day moving average price is $28.46 and its 200 day moving average price is $27.64. The company has a quick ratio of 0.42, a current ratio of 0.53 and a debt-to-equity ratio of 0.46. The stock has a market cap of $7.07 billion, a PE ratio of 18.58, a P/E/G ratio of 1.38 and a beta of 1.50.

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

Insider Activity at Life Time Group

In related news, CFO Erik Weaver sold 22,000 shares of the company's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $32.69, for a total transaction of $719,180.00. Following the sale, the chief financial officer owned 114,166 shares of the company's stock, valued at $3,732,086.54. This represents a 16.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Eric J. Buss sold 192,217 shares of the company's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $32.02, for a total transaction of $6,154,788.34. Following the sale, the executive vice president directly owned 474,008 shares in the company, valued at approximately $15,177,736.16. The trade was a 28.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 16,638,669 shares of company stock valued at $507,722,099 over the last quarter. 13.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Life Time Group

A number of hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC raised its stake in Life Time Group by 49.5% during the first quarter. EverSource Wealth Advisors LLC now owns 1,772 shares of the company's stock valued at $48,000 after purchasing an additional 587 shares in the last quarter. California State Teachers Retirement System raised its stake in Life Time Group by 24.9% during the first quarter. California State Teachers Retirement System now owns 168,879 shares of the company's stock valued at $4,550,000 after purchasing an additional 33,661 shares in the last quarter. Royal Bank of Canada raised its stake in Life Time Group by 3.9% during the first quarter. Royal Bank of Canada now owns 72,729 shares of the company's stock valued at $1,959,000 after purchasing an additional 2,700 shares in the last quarter. The Manufacturers Life Insurance Company raised its stake in Life Time Group by 38.7% during the first quarter. The Manufacturers Life Insurance Company now owns 1,745,768 shares of the company's stock valued at $47,031,000 after purchasing an additional 487,478 shares in the last quarter. Finally, Quantinno Capital Management LP raised its stake in shares of Life Time Group by 455.2% in the first quarter. Quantinno Capital Management LP now owns 76,101 shares of the company's stock valued at $2,050,000 after acquiring an additional 62,393 shares during the period. 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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