Life Time Group (NYSE:LTH) Trading Down 9.5% After Earnings Miss

Key Points

• Life Time Group's shares fell by 9.5% after reporting weaker than expected earnings and traded as low as $26.25.
• Despite the drop, the company reported a quarterly EPS of $0.39, beating analyst expectations and achieving 18.3% year-over-year revenue growth.
• Several research analysts have mixed ratings on the stock, with the consensus at a "Moderate Buy" and an average price target of $35.92.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) shares dropped 9.5% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $26.25 and last traded at $25.87. Approximately 4,775,287 shares traded hands during mid-day trading, an increase of 87% from the average daily volume of 2,552,480 shares. The stock had previously closed at $28.59.

The company reported $0.39 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.12. The business had revenue of $706.04 million during the quarter, compared to the consensus estimate of $684.06 million. Life Time Group had a return on equity of 8.29% and a net margin of 7.60%. The firm's revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.15 earnings per share.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Morgan Stanley boosted their target price on Life Time Group from $33.00 to $34.00 and gave the company an "equal weight" rating in a research report on Friday, May 9th. Craig Hallum upgraded Life Time Group to a "buy" rating and set a $45.00 price target for the company in a research note on Friday, May 23rd. Wall Street Zen downgraded Life Time Group from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Guggenheim reiterated a "buy" rating and set a $36.00 price target on shares of Life Time Group in a research note on Tuesday, June 24th. Six equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $35.92.

Insider Buying and Selling at Life Time Group

In other Life Time Group news, EVP Parham Javaheri sold 84,744 shares of Life Time Group stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $27.84, for a total value of $2,359,272.96. Following the completion of the transaction, the executive vice president owned 249,526 shares of the company's stock, valued at approximately $6,946,803.84. The trade was a 25.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Erik Weaver sold 18,000 shares of Life Time Group stock in a transaction on Friday, June 6th. The shares were sold at an average price of $28.74, for a total transaction of $517,320.00. Following the completion of the transaction, the chief financial officer directly owned 86,611 shares of the company's stock, valued at $2,489,200.14. The trade was a 17.21% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 23,548,155 shares of company stock valued at $691,624,905. 8.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Life Time Group

Several institutional investors and hedge funds have recently bought and sold shares of LTH. Raymond James Financial Inc. purchased a new stake in shares of Life Time Group in the 4th quarter valued at approximately $307,000. Norges Bank acquired a new stake in Life Time Group during the 4th quarter worth $19,198,000. Franklin Resources Inc. lifted its stake in shares of Life Time Group by 769.1% in the 4th quarter. Franklin Resources Inc. now owns 200,829 shares of the company's stock worth $4,442,000 after acquiring an additional 177,721 shares during the period. Geode Capital Management LLC lifted its stake in shares of Life Time Group by 2.1% in the fourth quarter. Geode Capital Management LLC now owns 1,529,949 shares of the company's stock valued at $33,851,000 after purchasing an additional 32,107 shares during the period. Finally, ExodusPoint Capital Management LP acquired a new position in Life Time Group during the fourth quarter worth about $283,000. 79.40% of the stock is currently owned by institutional investors and hedge funds.

Life Time Group Trading Down 9.7%

The company has a debt-to-equity ratio of 0.55, a current ratio of 0.43 and a quick ratio of 0.31. The company has a market cap of $5.67 billion, a price-to-earnings ratio of 26.90 and a beta of 1.73. The business's 50-day simple moving average is $28.98 and its 200-day simple moving average is $29.89.

Life Time Group Company Profile

Life Time Group Holdings, Inc provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas.

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