Life Time Group (NYSE:LTH) Upgraded to Strong-Buy at The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded Life Time Group to “strong buy,” joining broad analyst optimism. The stock has a consensus “Buy” rating and an average price target of $53.77.
• Life Time exceeded quarterly expectations, reporting $0.48 earnings per share versus $0.37 expected and $866 million in revenue, up 13.7% year over year.
• Insiders have sold significant holdings, including CEO Bahram Akradi’s approximately $19.7 million sale; insiders sold 23.4 million shares worth about $744.2 million in the last quarter.

Life Time Group (NYSE:LTH - Get Free Report) was upgraded by research analysts at The Goldman Sachs Group to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

Several other research firms have also recently commented on LTH. Wells Fargo & Company boosted their price objective on shares of Life Time Group from $46.00 to $51.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $54.00 target price on Life Time Group in a report on Friday. Jefferies Financial Group lifted their price target on Life Time Group from $41.00 to $51.00 and gave the company a "buy" rating in a research note on Monday, June 29th. Weiss Ratings raised Life Time Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada increased their price objective on Life Time Group from $50.00 to $60.00 and gave the stock an "outperform" rating in a report on Friday. Two analysts have rated the stock with a Strong Buy rating and thirteen have issued a Buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $53.77.

Life Time Group Price Performance

NYSE LTH opened at $44.86 on Monday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.56 and a current ratio of 0.66. The stock has a market cap of $10.02 billion, a price-to-earnings ratio of 24.38, a PEG ratio of 1.66 and a beta of 1.50. The business has a 50 day simple moving average of $38.93 and a 200 day simple moving average of $32.18. Life Time Group has a 52-week low of $24.14 and a 52-week high of $47.24.

Life Time Group (NYSE:LTH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.11. The firm had revenue of $866.00 million for the quarter, compared to analyst estimates of $845.75 million. Life Time Group had a net margin of 13.07% and a return on equity of 10.56%. The business's revenue was up 13.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.37 earnings per share. Analysts anticipate that Life Time Group will post 1.53 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Life Time Group news, CEO Bahram Akradi sold 438,257 shares of Life Time Group stock in a transaction on Friday, July 31st. The shares were sold at an average price of $45.03, for a total value of $19,734,712.71. Following the sale, the chief executive officer directly owned 3,615,086 shares in the company, valued at approximately $162,787,322.58. The trade was a 10.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John G. Danhakl sold 4,991,749 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $31.46, for a total transaction of $157,040,423.54. Following the sale, the director directly owned 16,242,383 shares in the company, valued at $510,985,369.18. This trade represents a 23.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 23,403,822 shares of company stock valued at $744,190,623 in the last quarter. Company insiders own 13.30% of the company's stock.

Institutional Trading of Life Time Group

Several institutional investors and hedge funds have recently bought and sold shares of LTH. Handelsbanken Fonder AB grew its stake in Life Time Group by 138.3% in the second quarter. Handelsbanken Fonder AB now owns 63,400 shares of the company's stock valued at $2,589,000 after purchasing an additional 36,800 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Life Time Group by 36.6% in the second quarter. GAMMA Investing LLC now owns 3,844 shares of the company's stock valued at $157,000 after buying an additional 1,029 shares in the last quarter. Avior Wealth Management LLC acquired a new position in Life Time Group during the second quarter worth $459,000. Versant Capital Management Inc raised its position in Life Time Group by 286.7% during the second quarter. Versant Capital Management Inc now owns 1,806 shares of the company's stock worth $74,000 after acquiring an additional 1,339 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Life Time Group by 49.5% in the first quarter. EverSource Wealth Advisors LLC now owns 1,772 shares of the company's stock valued at $48,000 after acquiring an additional 587 shares during the last quarter. Institutional investors own 79.40% of the company's stock.

Trending Headlines about Life Time Group

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

• Positive Sentiment: Management raised its earnings outlook following the second-quarter earnings call, citing rapid growth. The company’s latest quarter also exceeded expectations, with earnings of $0.48 per share versus the $0.37 consensus estimate and revenue growth of 13.7% year over year. Life Time Group Lifts Earnings Outlook Amid Rapid Growth
• Positive Sentiment: Several analysts raised their price targets for LTH to $64, $52 and $51, indicating continued confidence in the premium health-club operator’s growth prospects and suggesting upside from recent trading levels. Life Time Group Price Target Raised to $64 Life Time Group Price Target Raised to $52 Life Time Group Price Target Raised to $51
• Positive Sentiment: Life Time is being highlighted as a beneficiary of the broader wellness boom, as consumers continue to spend on premium fitness clubs and health-related services. Best Health and Fitness Stocks for Investors Amid Wellness Boom
• Negative Sentiment: Multiple senior executives disclosed sizable insider sales completed July 31. CEO Bahram Akradi sold about $19.7 million of shares, EVP Eric Buss sold $21.6 million, EVP Parham Javaheri sold $2.8 million and CFO Erik Weaver sold $2.1 million. The transactions reduced their holdings by roughly 11% to 50% and could weigh on investor sentiment, although all retained shares. SEC insider trading filing

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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