Life Time Group (NYSE:LTH) Stock Sees Heavy Put Option Buying

Key Points

• Put-option activity surged in Life Time Group, with investors purchasing 8,800 puts—515% above the typical daily volume of 1,430.
• Life Time Group reported quarterly results above expectations, delivering $0.48 EPS versus the $0.37 consensus and $866 million in revenue, up 13.7% year over year.
• Despite heavy insider selling totaling nearly $306 million over 90 days, analysts maintain a consensus “Buy” rating with an average price target of $55.31.

Life Time Group Holdings, Inc. (NYSE:LTH - Get Free Report) was the target of unusually large options trading activity on Friday. Investors acquired 8,800 put options on the stock. This represents an increase of 515% compared to the typical daily volume of 1,430 put options.

Life Time Group Trading Up 1.7%

Shares of LTH stock traded up $0.70 during mid-day trading on Friday, reaching $41.06. The company's stock had a trading volume of 966,169 shares, compared to its average volume of 2,960,632. The company has a quick ratio of 0.56, a current ratio of 0.66 and a debt-to-equity ratio of 0.44. The firm has a market capitalization of $9.18 billion, a PE ratio of 22.36, a price-to-earnings-growth ratio of 1.44 and a beta of 1.49. The company's 50 day simple moving average is $42.89 and its 200-day simple moving average is $36.45. Life Time Group has a 12-month low of $24.14 and a 12-month high of $47.24.

Life Time Group (NYSE:LTH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.11. Life Time Group had a net margin of 13.07% and a return on equity of 10.56%. The firm had revenue of $866.00 million during the quarter, compared to analysts' expectations of $845.75 million. During the same period in the prior year, the company earned $0.37 EPS. The firm's revenue was up 13.7% on a year-over-year basis. On average, research analysts predict that Life Time Group will post 1.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have recently commented on LTH. Deutsche Bank Aktiengesellschaft set a $54.00 price objective on Life Time Group in a report on Friday, July 31st. Royal Bank Of Canada lifted their target price on Life Time Group from $50.00 to $60.00 and gave the company an "outperform" rating in a report on Friday, July 31st. Morgan Stanley boosted their price target on Life Time Group from $39.00 to $53.00 and gave the company an "overweight" rating in a research report on Tuesday, August 18th. Jefferies Financial Group restated a "buy" rating on shares of Life Time Group in a research note on Wednesday, September 23rd. Finally, Wells Fargo & Company raised their price objective on Life Time Group from $46.00 to $51.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating and thirteen have issued a Buy rating to the stock. According to MarketBeat, Life Time Group presently has a consensus rating of "Buy" and an average target price of $55.31.

Insider Buying and Selling at Life Time Group

In related news, Director John Galashan sold 2,879,154 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $43.80, for a total value of $126,106,945.20. Following the sale, the director directly owned 3,029,450 shares of the company's stock, valued at approximately $132,689,910. This trade represents a 48.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John Danhakl sold 2,879,154 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $43.80, for a total transaction of $126,106,945.20. Following the completion of the sale, the director owned 3,029,450 shares of the company's stock, valued at approximately $132,689,910. The trade was a 48.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 6,966,063 shares of company stock worth $306,031,935. 13.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Life Time Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Anchor Investment Management LLC purchased a new stake in shares of Life Time Group during the 2nd quarter valued at about $68,000. Sequoia Financial Advisors LLC purchased a new position in Life Time Group in the 2nd quarter worth approximately $288,000. Tidal Investments LLC purchased a new position in Life Time Group in the 2nd quarter worth approximately $14,439,000. WINTON GROUP Ltd grew its position in Life Time Group by 139.3% in the second quarter. WINTON GROUP Ltd now owns 93,307 shares of the company's stock valued at $3,811,000 after acquiring an additional 54,316 shares in the last quarter. Finally, Maven Securities LTD acquired a new stake in Life Time Group in the second quarter valued at approximately $1,034,000. Hedge funds and other institutional investors own 79.40% of the company's stock.

Life Time Group Company Profile

Life Time Group Holdings, Inc operates a network of athletic country clubs and wellness centers under the Life Time brand. Its facilities offer fitness equipment and training, group exercise classes, indoor and outdoor pools, sports courts, childcare, spas, salons, cafés and other services designed to support health, wellness and an active lifestyle.

The company also provides personal training, performance programs, nutrition services and organized athletic activities, including events and leagues for sports such as pickleball and tennis.

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