LifeStance Health Group (NASDAQ:LFST) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded LifeStance Health Group from a “strong-buy” to a “buy,” even as the broader analyst view remains constructive with a consensus rating of “Moderate Buy” and a target price of $9.75.
• The company recently beat earnings expectations, reporting Q1 EPS of $0.04 versus $0.01 expected and revenue of $403.48 million, up 21.2% year over year.
• Insider selling was significant, with directors Robert Bessler and Darren M. Black selling a combined 6.87 million shares worth about $55 million over the last 90 days.

LifeStance Health Group (NASDAQ:LFST - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

Other research analysts have also issued research reports about the stock. JPMorgan Chase & Co. boosted their price objective on shares of LifeStance Health Group from $8.00 to $9.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. Barclays boosted their price objective on shares of LifeStance Health Group from $8.00 to $9.00 and gave the stock an "overweight" rating in a research note on Friday, March 6th. Weiss Ratings reiterated a "hold (c-)" rating on shares of LifeStance Health Group in a research note on Wednesday, May 27th. KeyCorp boosted their price objective on shares of LifeStance Health Group from $8.00 to $9.00 and gave the stock an "overweight" rating in a research note on Thursday, February 26th. Finally, Zacks Research upgraded shares of LifeStance Health Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 27th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $9.75.

LifeStance Health Group Trading Down 1.3%

NASDAQ:LFST opened at $8.50 on Friday. LifeStance Health Group has a one year low of $3.74 and a one year high of $8.89. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.48 and a current ratio of 1.48. The firm has a market cap of $3.30 billion, a P/E ratio of 141.67 and a beta of 1.19. The firm has a 50-day simple moving average of $7.35 and a 200-day simple moving average of $7.06.

LifeStance Health Group (NASDAQ:LFST - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.01 by $0.03. The business had revenue of $403.48 million during the quarter, compared to analyst estimates of $387.46 million. LifeStance Health Group had a net margin of 1.55% and a return on equity of 1.56%. The company's quarterly revenue was up 21.2% on a year-over-year basis. Equities analysts anticipate that LifeStance Health Group will post 0.12 EPS for the current fiscal year.

LifeStance Health Group announced that its board has authorized a share buyback program on Wednesday, February 25th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 3.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at LifeStance Health Group

In other news, Director Robert Bessler sold 575,034 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $8.02, for a total value of $4,611,772.68. Following the sale, the director owned 986,931 shares in the company, valued at $7,915,186.62. This represents a 36.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Darren M. Black sold 5,899,661 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $8.02, for a total transaction of $47,315,281.22. Following the completion of the sale, the director owned 23,310,115 shares in the company, valued at $186,947,122.30. The trade was a 20.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 6,868,057 shares of company stock worth $55,048,226 over the last 90 days. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of LifeStance Health Group

Hedge funds have recently added to or reduced their stakes in the company. Larson Financial Group LLC boosted its holdings in LifeStance Health Group by 19,952.6% during the fourth quarter. Larson Financial Group LLC now owns 3,810 shares of the company's stock worth $27,000 after buying an additional 3,791 shares in the last quarter. KBC Group NV purchased a new stake in LifeStance Health Group during the first quarter worth $29,000. EverSource Wealth Advisors LLC boosted its holdings in LifeStance Health Group by 359.1% during the first quarter. EverSource Wealth Advisors LLC now owns 6,909 shares of the company's stock worth $44,000 after buying an additional 5,404 shares in the last quarter. Bayesian Capital Management LP purchased a new stake in LifeStance Health Group during the second quarter worth $52,000. Finally, PNC Financial Services Group Inc. boosted its holdings in LifeStance Health Group by 615.3% during the first quarter. PNC Financial Services Group Inc. now owns 9,285 shares of the company's stock worth $59,000 after buying an additional 7,987 shares in the last quarter. 85.50% of the stock is owned by hedge funds and other institutional investors.

LifeStance Health Group Company Profile

LifeStance Health Group NASDAQ: LFST is a leading provider of outpatient mental health services in the United States. Headquartered in New York City, the company operates a growing network of clinics that deliver integrated, patient-centered psychological and psychiatric care. LifeStance’s mission is to expand access to high-quality mental health treatment by combining evidence-based therapy modalities with personalized treatment plans.

The company’s service offerings include individual, family, and group psychotherapy, psychiatric medication management, psychological assessment, and telehealth services.

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