Partners Group entities sell $13.57 million in Life Time Group Holdings stock By Investing.com

In recent market activity, several entities under the Partners Group umbrella have collectively sold shares of Life Time Group Holdings, Inc. (NYSE:LTH), a prominent operator of fitness centers. The sales, part of a public offering which concluded on August 14, 2024, amounted to a total of $13.57 million at a price of $20.88 per share.

Partners Group Private Equity (Master Fund), LLC, Partners Group Private Equity II, LLC, Partners Group Series Access II, LLC, and Partners Group Access 83 PF LP are the entities involved in the transaction. These sales are notable as they involve significant amounts of stock from a major player in the membership sports and recreation clubs industry.

The specific breakdown of the sales is detailed in the footnotes of the SEC filing, which indicates the number of shares sold by each entity. Partners Group Private Equity (Master Fund), LLC sold 342,285 shares, Partners Group Private Equity II, LLC disposed of 752 shares, Partners Group Access 83 PF LP sold 23,622 shares, and Partners Group Series Access II, LLC, Series 61 sold 283,341 shares.

Following the transaction, the reporting entities still hold a substantial number of shares, with Partners Group Private Equity (Master Fund), LLC directly holding 3,122,345 shares, Partners Group Private Equity II, LLC with 6,862 shares, Partners Group Access 83 PF LP holding 215,482 shares, and Partners Group Series Access II, LLC, Series 61 with 2,584,659 shares.

The entities have clarified their ownership status, with footnotes indicating that while they may be deemed to be members of a “group” for the purposes of the Securities Exchange Act of 1934, they disclaim beneficial ownership of any securities that they do not directly own, except to the extent of their pecuniary interest.

The sale was executed as part of a public offering of Life Time Group Holdings, Inc.’s common stock, with full exercise of the option granted to the underwriters to acquire additional shares. The reporting entities are part of a 10% owner group of Life Time Group Holdings, Inc.

Investors and market watchers often pay close attention to such filings to gauge the sentiment of significant shareholders regarding the company’s prospects. The sale of shares by Partners Group entities might be interpreted in various ways, but it remains a single data point in the broader analysis of Life Time Group Holdings, Inc.’s stock performance and potential.

In other recent news, Life Time Group Holdings announced plans for a public offering of 12 million shares, with the intention of using the proceeds for general corporate purposes, potentially including debt repayment. The offering is to be managed by Morgan Stanley, BofA Securities, Deutsche Bank Securities, and Wells Fargo Securities, among others. However, the final terms and completion of the offering are contingent upon market conditions and other factors.

In financial developments, Life Time reported a promising second quarter in 2024, with a 19% increase in total revenue to $668 million and a 5% growth in active memberships. The company’s net income for the quarter was reported at $53 million. Based on these results, Life Time raised its full-year revenue guidance to between $2.56 billion and $2.59 billion, and adjusted EBITDA guidance to a range of $642 million to $652 million.

CEO Bahram Akradi has highlighted strategic investments in technology, including AI, as a key factor in the company’s growth. Despite a deliberate slowdown in new club expansion to prioritize cash flow, Life Time has a significant pipeline for new club locations, potentially adding more than 30 new sites. These are among the recent developments at Life Time Group Holdings.

InvestingPro Insights

As investors evaluate the recent sale of Life Time Group Holdings, Inc. (NYSE:LTH) shares by Partners Group entities, it’s important to consider the company’s financial health and market performance. Life Time Group Holdings, Inc. is currently trading at a high earnings multiple with a P/E ratio of 44.83, which is above the industry average. This indicates that investors are expecting higher earnings growth in the future compared to the company’s current earnings.

One of the InvestingPro Tips highlights that Life Time Group Holdings, Inc. is trading at a high P/E ratio relative to near-term earnings growth, suggesting that the market may be pricing in optimistic growth projections. Additionally, the company has experienced a large price uptick over the last six months, with a 6-month price total return of 82.1%, reflecting strong market confidence.

When it comes to the company’s financials, Life Time Group Holdings, Inc. has reported revenue growth of 17.97% over the last twelve months as of Q2 2024. Furthermore, the company has an adjusted market cap of $4.49 billion and a gross profit margin of 46.64%, which underlines its ability to maintain profitability. These metrics, especially the strong revenue growth, are essential for investors to consider in light of the recent share sales by major stakeholders.

For those seeking more in-depth analysis, there are additional InvestingPro Tips available on the platform, which provide further insights into Life Time Group Holdings, Inc.’s financial health and market performance. These tips can be accessed at https://www.investing.com/pro/LTH, offering investors a more comprehensive understanding of the company’s outlook.

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