Life Time Group (NYSE:LTH) Trading Down 9.5% Following Weak Earnings

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.

Shares of Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) dropped 9.5% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $26.25 and last traded at $25.87. Approximately 4,775,287 shares changed hands during 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 $0.37 EPS for the quarter, beating the consensus estimate of $0.33 by $0.04. The company had revenue of $761.47 million for the quarter, compared to analyst estimates of $752.33 million. Life Time Group had a net margin of 8.03% and a return on equity of 9.05%. The firm's revenue was up 14.0% on a year-over-year basis. During the same quarter last year, the business earned $0.26 earnings per share.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Guggenheim reissued a "buy" rating and set a $36.00 target price on shares of Life Time Group in a research note on Tuesday, June 24th. Craig Hallum raised shares of Life Time Group to a "buy" rating and set a $45.00 target price on the stock in a research note on Friday, May 23rd. Wall Street Zen lowered shares of Life Time Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Morgan Stanley increased 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. Six equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.92.

Insider Activity

In other Life Time Group news, CFO Erik Weaver sold 18,000 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $28.74, for a total value of $517,320.00. Following the transaction, the chief financial officer owned 86,611 shares in the company, valued at approximately $2,489,200.14. This trade represents a 17.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director John G. Danhakl sold 11,655,582 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $29.38, for a total value of $342,440,999.16. Following the completion of the transaction, the director owned 29,898,037 shares in the company, valued at $878,404,327.06. The trade was a 28.05% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 23,548,155 shares of company stock worth $691,624,905. Insiders own 8.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LTH. Kapitalo Investimentos Ltda purchased a new position in Life Time Group in the 4th quarter valued at $33,000. Harbour Investments Inc. purchased a new position in Life Time Group in the 1st quarter valued at $36,000. Sterling Capital Management LLC lifted its holdings in Life Time Group by 892.6% in the 4th quarter. Sterling Capital Management LLC now owns 2,025 shares of the company's stock valued at $45,000 after purchasing an additional 1,821 shares in the last quarter. Nisa Investment Advisors LLC lifted its holdings in Life Time Group by 98.9% in the 2nd quarter. Nisa Investment Advisors LLC now owns 1,506 shares of the company's stock valued at $46,000 after purchasing an additional 749 shares in the last quarter. Finally, IFP Advisors Inc raised its holdings in shares of Life Time Group by 10,150.0% during the 2nd quarter. IFP Advisors Inc now owns 1,640 shares of the company's stock worth $51,000 after acquiring an additional 1,624 shares during the period. Hedge funds and other institutional investors own 79.40% of the company's stock.

Life Time Group Stock Performance

The company has a current ratio of 0.65, a quick ratio of 0.31 and a debt-to-equity ratio of 0.52. The firm has a fifty day moving average price of $28.83 and a 200 day moving average price of $29.84. The firm has a market cap of $5.93 billion, a PE ratio of 26.42 and a beta of 1.73.

About Life Time Group

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.