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Bahram Akradi, the Founder and CEO of Life Time Group Holdings, Inc. (NYSE:LTH), recently executed a significant stock transaction, selling 5 million shares of common stock. The shares were sold at an average price of $30.13 each, totaling approximately $150.65 million. Following this transaction, Akradi holds 2,993,849 shares directly. The stock, which has shown remarkable strength with a 132% return over the past year according to InvestingPro data, currently trades at $31.43 with a market capitalization of $6.38 billion.
In addition to the sale, Akradi engaged in other transactions, including the acquisition of 9,388,000 shares through the exercise of stock options at $10 per share, valued at $93.88 million. Furthermore, he disposed of 2,999,361 shares at $31.30 per share, totaling nearly $93.88 million, to cover tax obligations. InvestingPro analysis indicates the company maintains a GOOD financial health score, despite trading at a relatively high P/E ratio of 42.7x.
Akradi also acquired additional shares without monetary exchange, receiving 376,506 shares and 188,255 shares in separate transactions, as performance stock units vested. These shares are subject to a lock-up agreement, preventing their sale for 180 days following February 27, 2025.
The transactions reflect Akradi’s strategic management of his holdings in Life Time Group, a company known for its membership sports and recreation clubs.
In other recent news, Life Time Group Holdings Inc. reported robust fourth-quarter earnings, significantly surpassing analyst expectations with an EPS of $0.27 compared to the forecast of $0.11. The company also reported a revenue of $663.3 million, exceeding projections by $19.55 million. Following these results, Craig-Hallum analyst Alex Fuhrman increased the price target for Life Time Group to $45, while maintaining a Buy rating, citing the company’s strong financial position and potential for growth. Similarly, Guggenheim raised its price target to $36, also maintaining a Buy rating, emphasizing Life Time’s ongoing growth despite market concerns.
In a strategic move, Life Time announced a $699.2 million secondary stock offering, with proceeds going to selling stockholders and not benefiting the company directly. This offering is managed by J.P. Morgan and BofA Securities, with the transaction expected to close in March 2025. Furthermore, S&P Global revised Life Time’s outlook to positive from stable, highlighting the company’s better-than-expected 2024 results and improved financial policy. Life Time’s debt to EBITDA ratio has decreased, and the company is expected to maintain a strong revenue growth trajectory in 2025.
Additionally, Life Time is projected to spend significantly on capital expenditure to expand its club network, aligning with its asset-light growth strategy. The company’s focus on enhancing its membership offerings and digital platforms is expected to drive further growth, supported by initiatives like wellness clinics and digital app monetization. These developments reflect Life Time’s strategic positioning for continued success in the health and wellness sector.
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