Life Time Group Target of Unusually Large Options Trading (NYSE:LTH)

Key Points

• Life Time Group saw unusually heavy options activity on Thursday, with traders buying 6,790 call options — about 1,483% above the typical volume.
• The stock rose to $39.94 during intraday trading, close to its 52-week high of $40.63, after the company recently beat quarterly earnings expectations and posted 11.7% revenue growth year over year.
• Analysts remain mostly positive, with a consensus rating of Moderate Buy and an average price target of $43.09, though some insiders have recently sold large blocks of shares.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) was the recipient of unusually large options trading on Thursday. Stock investors acquired 6,790 call options on the stock. This is an increase of 1,483% compared to the typical volume of 429 call options.

Life Time Group Price Performance

Shares of LTH stock traded up $1.06 during mid-day trading on Thursday, reaching $39.94. The stock had a trading volume of 823,750 shares, compared to its average volume of 2,878,642. Life Time Group has a 12-month low of $24.14 and a 12-month high of $40.63. The company has a market cap of $8.89 billion, a P/E ratio of 23.34, a price-to-earnings-growth ratio of 1.56 and a beta of 1.55. The business has a 50-day simple moving average of $31.98 and a 200 day simple moving average of $28.99. The company has a current ratio of 0.53, a quick ratio of 0.42 and a debt-to-equity ratio of 0.46.

Life Time Group (NYSE:LTH - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.39 by $0.03. The business had revenue of $788.70 million for the quarter, compared to analyst estimates of $787.65 million. Life Time Group had a net margin of 12.56% and a return on equity of 10.10%. The business's revenue for the quarter was up 11.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.39 EPS. On average, sell-side analysts anticipate that Life Time Group will post 1.48 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Wells Fargo & Company increased their target price on Life Time Group from $37.00 to $38.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Jefferies Financial Group restated a "buy" rating and issued a $41.00 price target on shares of Life Time Group in a research note on Tuesday, May 5th. Oppenheimer reaffirmed an "outperform" rating and set a $60.00 price objective on shares of Life Time Group in a report on Thursday. Zacks Research cut Life Time Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. Finally, Guggenheim raised their target price on Life Time Group from $36.00 to $41.00 and gave the company a "buy" rating in a report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $43.09.

Insider Buying and Selling at Life Time Group

In other Life Time Group news, Director John Kristofer Galashan sold 4,991,749 shares of the company's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $31.46, for a total transaction of $157,040,423.54. Following the completion of the transaction, the director owned 16,242,383 shares in the company, valued at approximately $510,985,369.18. This represents a 23.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Partners Group Private Equity sold 747,178 shares of Life Time Group stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $31.46, for a total transaction of $23,506,219.88. Following the completion of the sale, the insider directly owned 2,431,203 shares in the company, valued at approximately $76,485,646.38. The trade was a 23.51% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 27,876,110 shares of company stock valued at $854,609,979. 13.30% of the stock is owned by company insiders.

Institutional Trading of Life Time Group

Several institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC raised its position in shares of Life Time Group by 144.5% during the 4th quarter. GAMMA Investing LLC now owns 1,220 shares of the company's stock worth $32,000 after purchasing an additional 721 shares during the last quarter. Wexford Capital LP purchased a new position in Life Time Group during the third quarter worth $40,000. EverSource Wealth Advisors LLC raised its holdings in shares of Life Time Group by 201.6% in the second 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. Kemnay Advisory Services Inc. acquired a new position in shares of Life Time Group in the fourth quarter worth $73,000. Finally, Nisa Investment Advisors LLC lifted its position in shares of Life Time Group by 74.8% in the fourth quarter. Nisa Investment Advisors LLC now owns 2,862 shares of the company's stock valued at $76,000 after acquiring an additional 1,225 shares in the last quarter. 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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