Leonard Green & Partners LP, a major shareholder of Life Time Group Holdings, Inc. (NYSE:LTH), has sold a substantial portion of its shares in the company. The transaction, which occurred on August 14, 2024, involved the sale of shares in a public offering, including the full exercise of the underwriters’ option to purchase additional shares.
The sale involved three separate transactions, the largest being the sale of 3,509,808 shares by Green LTF Holdings II LP, one of the companies under the Leonard Green & Partners umbrella. This sale alone totaled over $73 million. In addition, two smaller sales were conducted by affiliated companies, LGP Associates VI-A LLC and LGP Associates VI-B LLC, which sold 5,945 and 59,247 shares, respectively. Each share was sold at a price of $20.88.
Following these transactions, Green LTF Holdings II LP still holds a significant interest of 54,160,712 shares in Life Time Group Holdings. The remaining interests of LGP Associates VI-A LLC and LGP Associates VI-B LLC are 91,733 and 914,255 shares, respectively.
The series of sales by Leonard Green & Partners and its affiliates is notable because the firm and its partners are influential figures within Life Time Group Holdings. John Danhakl and J. Kristofer Galashan, partners at Leonard Green & Partners, sit on the board of Life Time Group Holdings and represent the interests of the Leonard Green companies.
Investors and market observers often follow the trading activities of key shareholders and board members with close attention, as these can provide insight into the company’s performance and future prospects. However, it is important to note that the reasons for these sales have not been publicly disclosed and the transactions do not necessarily indicate a change in the company’s fundamental value or operations.
In other recent news, Life Time Group Holdings, Inc. announced its plan to commence an underwritten public offering of 12 million shares of its common stock. The offering, which is being managed by Morgan Stanley, BofA Securities, Deutsche Bank Securities, Wells Fargo Securities, Evercore ISI and Guggenheim Securities, is subject to market conditions and other factors. The net proceeds will be used for general corporate purposes, including potentially for the repayment of indebtedness.
Life Time reported robust growth for the second quarter of 2024. Total revenue increased 19% to $668 million and active memberships increased 5%. Net income for the quarter was $53 million. The company raised its full-year revenue guidance to $2.56 billion to $2.59 billion, and adjusted EBITDA guidance for the year is now in the range of $642 million to $652 million.
Life Time CEO Bahram Akradi highlighted the company’s strategic investments in technology, including AI, and revealed plans for new club locations in the coming years. Despite a slowdown in new club expansion to become cash flow positive, Life Time has a significant pipeline of new club locations with the potential for more than 30 locations. These are recent developments that investors should keep an eye on.
InvestingPro Insights
Given the recent sale of Life Time Group Holdings, Inc. (NYSE:LTH) shares by Leonard Green & Partners, current and prospective investors can benefit from additional insights from InvestingPro. According to recent data, Life Time Group Holdings is trading at a high earnings multiple and a P/E ratio of 44.83. This is adjusted to 37.83 when looking at the trailing twelve months from the second quarter of 2024, which could suggest that the stock is optimistically valued relative to its earnings.
Life Time Group has shown a strong performance over the last twelve months to Q2 2024 with revenue growth of 17.97%, indicating a solid upward trajectory in its financials. This is further underpinned by a robust gross profit margin of 46.64% over the same period. In addition, the company has experienced a strong share price increase over the last six months with a total return of 82.1%. This increase in the share price is reflected in the positive returns over the last month and the last three months, which stand at 13.63% and 54.35%, respectively.
An InvestingPro tip for Life Time Group Holdings indicates that the company is expected to be profitable this year, which is consistent with the positive financial metrics observed. In addition, for investors who want a more detailed analysis, additional InvestingPro tips are available that can dig even deeper into the company’s financial health and stock performance. Specifically, there are 11 other tips listed on InvestingPro, including insights into the company’s debt load, short-term obligations, and analyst earnings revisions, which can be found at: https://www.investing.com/pro/LTH.
The recent sale by Leonard Green & Partners is a significant event for shareholders and these InvestingPro Insights could be crucial for investors to understand the broader context of Life Time Group Holdings’ market position and future prospects.
This article was created with the help of AI and reviewed by an editor. For more information, see our Terms and Conditions.
