Partners Group Private Equity, a major holder at Life Time Group Holdings (LTH), recently added 277,777 more shares. The buy increased the fund’s holdings by over 4 percent, and came to a total cost of just under $5 million.
This marks the first insider transaction since the company went public earlier in the month. Overall, company insiders own nearly 15 percent of shares.
Since going public, the owner of health, fitness, and wellness facilities has seen shares trade roughly flat. Operationally, revenue is up over 300 percent in the past year, although the firm is not yet profitable.
With the company topping $1 billion in revenue, it will likely hit profitability in the next few quarters.
Action to take: Although the company has a limited operating history, shares could be a potential winner here, given the growth in recreational spending in the post-pandemic era.
Investors have a limited trading history to determine any specific patterns here, but with a large insider adding up more shares, they’re likely undervalued and ready to head higher.
For traders, options are still not available at this time, but will start trading in a few weeks, as is typical for most companies that have only recently gone public.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.