LifeStance Health Group (NASDAQ:LFST) Shares Gap Up - Time to Buy?

Key Points

• LifeStance Health Group's stock price gapped up to $4.97 at open, from a previous close of $4.66, with recent trading at around $5.02.
• Analysts have shifted their ratings, with Wall Street Zen upgrading to a "buy" and UBS increasing the price target from $8.50 to $9.00, suggesting a positive outlook on the stock.
• The company's most recent earnings report showed a revenue increase of 10.6% year-over-year, with an earnings per share (EPS) of ($0.01), exceeding analyst expectations.

LifeStance Health Group, Inc. (NASDAQ:LFST - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $4.66, but opened at $4.97. LifeStance Health Group shares last traded at $5.02, with a volume of 1,302,250 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on LFST. UBS Group raised their target price on shares of LifeStance Health Group from $8.50 to $9.00 and gave the stock a "buy" rating in a report on Friday, August 8th. Wall Street Zen raised LifeStance Health Group from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, BTIG Research initiated coverage on LifeStance Health Group in a research report on Friday, July 25th. They set a "buy" rating and a $8.00 target price for the company. One research analyst has rated the stock with a sell rating, six have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $8.50.

LifeStance Health Group Trading Down 2.5%

The firm's 50-day simple moving average is $4.69 and its 200 day simple moving average is $6.08. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.48 and a quick ratio of 1.47. The firm has a market capitalization of $2.12 billion, a price-to-earnings ratio of -108.80 and a beta of 1.13.

LifeStance Health Group (NASDAQ:LFST - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.01) EPS for the quarter, topping analysts' consensus estimates of ($0.03) by $0.02. LifeStance Health Group had a negative return on equity of 1.11% and a negative net margin of 1.23%. The company had revenue of $345.31 million during the quarter, compared to analysts' expectations of $345.05 million. During the same quarter in the previous year, the firm earned ($0.06) EPS. LifeStance Health Group's revenue was up 10.6% on a year-over-year basis. Equities analysts expect that LifeStance Health Group, Inc. will post -0.18 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Ujjwal Ramtekkar sold 16,000 shares of the business's stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $5.94, for a total transaction of $95,040.00. Following the sale, the insider owned 113,435 shares in the company, valued at $673,803.90. The trade was a 12.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of LifeStance Health Group

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in LifeStance Health Group by 5.0% during the 1st quarter. Vanguard Group Inc. now owns 11,221,237 shares of the company's stock worth $74,733,000 after buying an additional 531,841 shares during the period. Jennison Associates LLC increased its position in LifeStance Health Group by 2.1% during the 1st quarter. Jennison Associates LLC now owns 8,255,236 shares of the company's stock valued at $54,980,000 after purchasing an additional 168,856 shares during the period. Wellington Management Group LLP raised its holdings in LifeStance Health Group by 2.3% during the 1st quarter. Wellington Management Group LLP now owns 5,399,293 shares of the company's stock worth $35,959,000 after purchasing an additional 123,056 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of LifeStance Health Group by 87.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,524,529 shares of the company's stock worth $25,977,000 after purchasing an additional 1,643,390 shares during the period. Finally, Geode Capital Management LLC lifted its position in shares of LifeStance Health Group by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 3,465,471 shares of the company's stock worth $25,546,000 after purchasing an additional 13,293 shares during the period. 85.50% of the stock is owned by institutional investors and hedge funds.

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.