LifeStance Health Group (NASDAQ:LFST) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• LifeStance Health Group was upgraded by Wall Street Zen from “buy” to “strong-buy,” adding to a generally bullish analyst view with an average rating of Buy and a consensus price target of $9.86.
• The company recently beat quarterly earnings and revenue expectations, reporting EPS of $0.04 versus $0.01 expected and revenue of $403.48 million versus $387.46 million expected, with revenue up 21.2% year over year.
• Despite the positive coverage and results, the stock was down 0.9% and saw notable insider selling, including large share sales by directors Darren M. Black and Eric Shuey.

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

LFST has been the topic of a number of other reports. BTIG Research increased their price target on LifeStance Health Group from $11.00 to $12.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Jefferies Financial Group upgraded shares of LifeStance Health Group to a "strong-buy" rating in a research note on Thursday, March 12th. Canaccord Genuity Group lifted their price objective on shares of LifeStance Health Group from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Weiss Ratings upgraded shares of LifeStance Health Group from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Friday, February 27th. Finally, UBS Group lifted their price objective on shares of LifeStance Health Group from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $9.86.

LifeStance Health Group Stock Down 0.9%

Shares of LFST opened at $7.39 on Friday. The company has a market capitalization of $2.87 billion, a PE ratio of 123.17 and a beta of 1.20. LifeStance Health Group has a 12 month low of $3.74 and a 12 month high of $8.89. The stock's 50-day moving average price is $6.95 and its two-hundred day moving average price is $6.88. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.18.

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

LifeStance Health Group declared that its board has authorized a share repurchase program on Wednesday, February 25th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 3.6% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Darren M. Black sold 5,899,661 shares of the company's stock in a transaction that occurred 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 transaction, the director directly owned 23,310,115 shares of the company's stock, valued at approximately $186,947,122.30. This represents a 20.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Eric Shuey sold 243,362 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $8.02, for a total value of $1,951,763.24. Following the transaction, the director directly owned 867,562 shares in the company, valued at approximately $6,957,847.24. This trade represents a 21.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 11,182,996 shares of company stock valued at $85,295,948. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in LFST. Silversmith Partners I GP LLC acquired a new position in LifeStance Health Group during the 4th quarter worth approximately $100,842,000. AustralianSuper Pty Ltd bought a new stake in LifeStance Health Group during the 3rd quarter worth approximately $17,056,000. Vanguard Group Inc. increased its holdings in LifeStance Health Group by 21.1% during the 4th quarter. Vanguard Group Inc. now owns 17,700,041 shares of the company's stock worth $124,608,000 after purchasing an additional 3,086,506 shares in the last quarter. Jennison Associates LLC increased its holdings in LifeStance Health Group by 38.5% during the 1st quarter. Jennison Associates LLC now owns 10,228,801 shares of the company's stock worth $65,157,000 after purchasing an additional 2,843,388 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in LifeStance Health Group by 62.3% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,793,336 shares of the company's stock worth $26,363,000 after purchasing an additional 1,839,465 shares in the last quarter. 85.50% of the stock is owned by institutional investors and hedge funds.

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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