Wall Street Zen Downgrades LifeStance Health Group (NASDAQ:LFST) to Hold

Key Points

• Wall Street Zen downgraded LifeStance Health Group (NASDAQ:LFST) from a "buy" rating to a "hold" rating in a recent report.
• Shares of LifeStance Health Group experienced a 5.8% decline, opening at $5.05, and have a market capitalization of $1.96 billion.
• Insider trading activity has occurred, with Director Darren M. Black and major shareholder Summit Partners L. P. selling 8.4 million shares each at an average price of $5.07, representing a 20.05% decrease in their holdings.

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

Several other equities analysts also recently weighed in on LFST. BTIG Research started coverage on LifeStance Health Group in a research report on Friday, July 25th. They set a "buy" rating and a $8.00 target price on the stock. UBS Group increased their target price on LifeStance Health Group from $8.50 to $9.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Weiss Ratings reiterated a "sell (e+)" rating on shares of LifeStance Health Group in a research report on Wednesday. Finally, Zacks Research upgraded LifeStance Health Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $8.50.

LifeStance Health Group Stock Down 5.8%

Shares of NASDAQ:LFST opened at $5.05 on Friday. The stock's fifty day simple moving average is $5.23 and its 200-day simple moving average is $5.49. LifeStance Health Group has a 52-week low of $3.74 and a 52-week high of $8.61. The company has a market capitalization of $1.96 billion, a P/E ratio of -101.00 and a beta of 1.17. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.19.

LifeStance Health Group (NASDAQ:LFST - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $345.31 million for the quarter, compared to the consensus estimate of $345.05 million. During the same period in the prior year, the business posted ($0.06) earnings per share. The firm's revenue for the quarter was up 10.6% compared to the same quarter last year. LifeStance Health Group has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, equities research analysts forecast that LifeStance Health Group will post -0.18 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Investors Weigh In On LifeStance Health Group

A number of hedge funds have recently bought and sold shares of the business. Squarepoint Ops LLC grew its stake in LifeStance Health Group by 259.1% during the 2nd quarter. Squarepoint Ops LLC now owns 1,360,054 shares of the company's stock valued at $7,031,000 after purchasing an additional 981,349 shares in the last quarter. Cim Investment Management Inc. grew its stake in LifeStance Health Group by 100.8% during the 2nd quarter. Cim Investment Management Inc. now owns 24,734 shares of the company's stock valued at $128,000 after purchasing an additional 12,414 shares in the last quarter. State of Wyoming grew its stake in LifeStance Health Group by 31.5% during the 2nd quarter. State of Wyoming now owns 86,629 shares of the company's stock valued at $448,000 after purchasing an additional 20,728 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings in LifeStance Health Group by 467.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 20,507 shares of the company's stock worth $106,000 after buying an additional 16,893 shares during the last quarter. Finally, Vident Advisory LLC lifted its holdings in LifeStance Health Group by 12.7% during the 2nd quarter. Vident Advisory LLC now owns 21,732 shares of the company's stock worth $112,000 after buying an additional 2,447 shares during the last quarter. Institutional investors and hedge funds own 85.50% of the company's stock.

LifeStance Health Group Company Profile

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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