On March 3, 2025, TPG GP A, LLC (Trades, Portfolio) made a significant move by reducing its stake in Life Time Group Holdings Inc (LTH, Financial). The firm decreased its holdings by 7,067,299 shares, bringing its total to 29,748,906 shares. This transaction reflects a strategic decision by TPG GP A, LLC (Trades, Portfolio), impacting its portfolio with a trade impact of -3.44. The shares were traded at a price of $30.13, and the current position of LTH in the firm's portfolio stands at 14.98%, with 14.19% of the firm's holdings in LTH.
Profile of TPG GP A, LLC (Trades, Portfolio)
TPG GP A, LLC (Trades, Portfolio) is headquartered at 301 Commerce Street, Fort Worth, TX. While the firm's specific investment philosophy is not detailed, it is known for holding a diverse portfolio of 31 stocks. Among its top holdings are Vail Resorts Inc (MTN, Financial), LifeStance Health Group Inc (LFST, Financial), Life Time Group Holdings Inc (LTH, Financial), Viking Holdings Ltd (VIK, Financial), and ServiceTitan Inc (TTAN, Financial). The firm's equity value is estimated at $6.2 billion, with a focus on the Consumer Cyclical and Healthcare sectors.
About Life Time Group Holdings Inc
Life Time Group Holdings Inc is a prominent lifestyle brand that offers health, fitness, and wellness experiences. The company operates in the USA and Canada, designing and managing large, multi-use sports and fitness centers in a resort-like environment. With a market capitalization of $6.75 billion, Life Time Group Holdings Inc is a significant player in the Travel & Leisure industry. The stock is currently priced at $32.19, with a price-to-earnings (PE) ratio of 43.50.
Financial Metrics and Valuation
According to GuruFocus, Life Time Group Holdings Inc is considered significantly overvalued, with a GF Value of $22.53. The price to GF Value ratio stands at 1.43, indicating a premium over its intrinsic value. Year-to-date, the stock has seen a 43.77% increase, and it holds a GF Score of 73/100, suggesting likely average performance. The stock has gained 6.84% since the transaction.
Impact of the Transaction
The reduction in shares by TPG GP A, LLC (Trades, Portfolio) has a notable impact on its portfolio, decreasing the trade impact by -3.44. Despite the reduction, Life Time Group Holdings Inc remains a significant part of the firm's portfolio, accounting for 14.98% of its holdings. The stock has experienced a 6.84% increase since the transaction, reflecting positive market sentiment.
Analysis of Financial Health
Life Time Group Holdings Inc's financial health presents a mixed picture. The company has a Balance Sheet Rank of 4/10 and a Profitability Rank of 5/10. Its Growth Rank is more promising at 7/10. However, the cash to debt ratio is 0.00, indicating potential liquidity concerns. The interest coverage ratio is 2.41, which may raise questions about the company's ability to meet its interest obligations.
Market and Industry Context
Operating within the Travel & Leisure industry, Life Time Group Holdings Inc faces both opportunities and challenges. The company's Altman Z score of 1.28 suggests some financial distress, while its Piotroski F-Score of 8 indicates strong financial health. Gotham Asset Management, LLC holds the largest guru position in the company, highlighting its appeal to institutional investors.
Conclusion
TPG GP A, LLC (Trades, Portfolio)'s decision to reduce its holdings in Life Time Group Holdings Inc reflects a strategic portfolio adjustment. For value investors, the current valuation and market performance of LTH present both risks and opportunities. While the stock is significantly overvalued, its recent performance and industry position may offer potential for those willing to navigate its financial complexities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
