In a recent transaction disclosed in an SEC filing, Erik Weaver, Executive Vice President and Chief Financial Officer of Life Time Group Holdings, Inc. (NYSE:LTH), sold 4,662 shares of the company's common stock. The shares were sold on October 15, 2024, at a price of $25.88 per share, resulting in a total transaction value of $120,652. Following the sale, Weaver holds 75,866 shares of Life Time Group. The sale was executed as part of a sell-to-cover transaction to satisfy tax withholding obligations, as mandated by the issuer's award agreement.
In other recent news, Life Time Group Holdings Inc (NYSE:LTH). has reported notable financial growth in the third quarter, with revenues increasing by 18.5% year-over-year to $693 million, surpassing the expected $675 million. Adjusted EBITDA also rose by 26% to $180 million, beating the forecast of $169 million. The company has seen consistent improvement in its net leverage ratio and reported its second consecutive quarter of positive free cash flow.
In the wake of these developments, both BofA Securities and the market maintain their ratings, with BofA setting a price target of $30.00. The firm's confidence in Life Time's financial health is reflected in its revised full-year 2024 adjusted EBITDA estimate for Life Time, which has been raised from $650 million to $655 million.
Life Time also announced plans to launch a public offering of 12 million shares of common stock, potentially to be used for debt repayment. Morgan Stanley and BofA Securities have been named as the lead active book-running managers for this offering. These are among the recent developments for Life Time Group Holdings Inc.
InvestingPro Insights
As Life Time Group Holdings, Inc. (NYSE:LTH) experiences insider activity, it's worth examining the company's financial health and market performance. According to InvestingPro data, Life Time Group has a market capitalization of $5.25 billion and is currently trading at a P/E ratio of 44.83, suggesting a premium valuation compared to many peers.
The company has shown strong growth, with revenue increasing by 17.97% over the last twelve months to $2.41 billion. This growth is complemented by a robust gross profit margin of 46.64%, indicating efficient cost management. Life Time Group's EBITDA has also seen significant improvement, growing by 39.49% over the same period.
InvestingPro Tips highlight that Life Time Group has been a strong performer in the market, with a 67.87% price return over the past year and an impressive 85.64% return over the last six months. This aligns with the insider sale occurring near the stock's 52-week high, as the price is currently at 93.1% of its peak.
However, investors should note that the company operates with a significant debt burden, which could impact financial flexibility. Additionally, Life Time Group is trading at a high earnings multiple, which may suggest that future growth expectations are already priced into the stock.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Life Time Group, providing a more comprehensive view of the company's prospects and potential risks.
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