LifeStance Health Group (NASDAQ:LFST) Receives "Sell (E+)" Rating from Weiss Ratings

Key Points

• LifeStance Health Group has been assigned a "sell (e+)" rating by Weiss Ratings, indicating a negative outlook for the stock.
• Despite the recent downgrade, some analysts have maintained a positive sentiment with multiple "buy" ratings and a consensus price target of $8.50.
• Insiders sold more than 20 million shares in recent months, demonstrating significant movement in ownership and raising concerns among investors.

LifeStance Health Group (NASDAQ:LFST - Get Free Report)'s stock had its "sell (e+)" rating reissued by Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other equities analysts also recently issued reports on LFST. BTIG Research assumed coverage on LifeStance Health Group in a research report on Friday, July 25th. They set a "buy" rating and a $8.00 price target on the stock. UBS Group increased their price target on LifeStance Health Group from $8.50 to $9.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Wall Street Zen upgraded LifeStance Health Group from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $8.50.

LifeStance Health Group Stock Up 2.0%

Shares of LFST opened at $5.64 on Wednesday. The business's 50 day moving average is $5.18 and its 200 day moving average is $5.51. The company has a market capitalization of $2.19 billion, a PE ratio of -112.80 and a beta of 1.17. LifeStance Health Group has a 12-month low of $3.74 and a 12-month high of $8.61. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.19.

LifeStance Health Group (NASDAQ:LFST - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.03) by $0.02. The business had revenue of $345.31 million for the quarter, compared to the consensus estimate of $345.05 million. LifeStance Health Group had a negative return on equity of 1.11% and a negative net margin of 1.23%.The company's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.06) EPS. LifeStance Health Group has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts expect that LifeStance Health Group will post -0.18 earnings per share for the current fiscal year.

Insider Activity at LifeStance Health Group

In other news, major shareholder Summit Partners L. P sold 8,407,643 shares of the firm's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $5.07, for a total transaction of $42,626,750.01. Following the sale, the insider owned 33,524,715 shares in the company, valued at $169,970,305.05. This trade represents a 20.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Darren M. Black sold 8,407,643 shares of the firm's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $5.07, for a total value of $42,626,750.01. Following the sale, the director owned 33,524,715 shares in the company, valued at $169,970,305.05. This trade represents a 20.05% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 20,407,643 shares of company stock valued at $103,466,750 in the last three months. 3.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LFST. DekaBank Deutsche Girozentrale purchased a new position in LifeStance Health Group in the first quarter valued at about $31,000. Park Edge Advisors LLC acquired a new position in shares of LifeStance Health Group during the second quarter worth approximately $52,000. Bayesian Capital Management LP acquired a new position in shares of LifeStance Health Group during the 2nd quarter valued at $52,000. Xponance Inc. bought a new position in shares of LifeStance Health Group in the first quarter valued at $69,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of LifeStance Health Group in the second quarter valued at $70,000. 85.50% of the stock is owned by hedge funds and other institutional investors.

About LifeStance Health Group

LifeStance Health Group, Inc, through its subsidiaries, provides outpatient mental health services to children, adolescents, adults, and geriatrics in the United States. The company offers patients a suite of mental health services, including psychiatric evaluations and treatment, psychological, and neuropsychological testing, as well as individual, family, and group therapy.

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