Life Time Group (NYSE:LTH) Trading 10.9% Higher Following Strong Earnings

Key Points

• Shares jumped 10.9% after Life Time reported quarterly EPS of $0.42 versus a $0.34 consensus and revenue of $788.7 million, up 11.7% year-over-year.
• Analysts are largely bullish with an average rating of "Buy" and a consensus price target of $40.13, including several recent upgrades and reiterations of Buy/Strong Buy ratings.
• Insiders (including the EVP and CFO) recently sold stock, insiders own 13.3% of shares while institutional investors hold about 79.4% of the company.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) shares rose 10.9% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $28.86 and last traded at $29.1440. Approximately 1,290,345 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 2,708,643 shares. The stock had previously closed at $26.28.

The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.08. The company had revenue of $788.70 million during the quarter, compared to the consensus estimate of $787.65 million. Life Time Group had a return on equity of 10.20% and a net margin of 12.51%.The firm's revenue was up 11.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.39 earnings per share.

Analyst Ratings Changes

A number of equities analysts have issued reports on LTH shares. UBS Group restated a "buy" rating and set a $43.00 price target on shares of Life Time Group in a report on Thursday, March 12th. Jefferies Financial Group started coverage on Life Time Group in a report on Tuesday, March 10th. They set a "buy" rating and a $40.00 price target on the stock. Zacks Research upgraded Life Time Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 24th. Guggenheim reiterated a "buy" rating and issued a $36.00 target price on shares of Life Time Group in a report on Friday, January 23rd. Finally, Morgan Stanley increased their target price on Life Time Group from $37.00 to $38.00 and gave the stock an "overweight" rating in a report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $40.13.

Insider Buying and Selling at Life Time Group

In other news, EVP Parham Javaheri sold 11,060 shares of Life Time Group stock in a transaction on Friday, March 13th. The stock was sold at an average price of $26.46, for a total transaction of $292,647.60. Following the sale, the executive vice president directly owned 315,175 shares in the company, valued at $8,339,530.50. The trade was a 3.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Erik Weaver sold 1,329 shares of Life Time Group stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $25.73, for a total value of $34,195.17. Following the sale, the chief financial officer owned 136,166 shares in the company, valued at $3,503,551.18. The trade was a 0.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 13.30% of the company's stock.

Institutional Investors Weigh In On Life Time Group

Large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its holdings in Life Time Group by 144.5% in the 4th quarter. GAMMA Investing LLC now owns 1,220 shares of the company's stock worth $32,000 after acquiring an additional 721 shares during the last quarter. Wexford Capital LP purchased a new stake in Life Time Group in the 3rd quarter worth about $40,000. EverSource Wealth Advisors LLC increased its holdings in Life Time Group by 201.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,499 shares of the company's stock worth $45,000 after acquiring an additional 1,002 shares during the last quarter. Asset Management One Co. Ltd. purchased a new stake in Life Time Group in the 3rd quarter worth about $69,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Life Time Group in the 4th quarter worth about $73,000. Hedge funds and other institutional investors own 79.40% of the company's stock.

Life Time Group Stock Up 11.4%

The company has a current ratio of 0.63, a quick ratio of 0.52 and a debt-to-equity ratio of 0.48. The firm has a market cap of $6.49 billion, a PE ratio of 17.67, a price-to-earnings-growth ratio of 1.13 and a beta of 1.50. The stock has a fifty day simple moving average of $26.94 and a two-hundred day simple moving average of $26.98.

Life Time Group Company Profile

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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