SCOTTSDALE, Ariz. - LifeStance Health Group, Inc. (NASDAQ: LFST), a major provider of outpatient mental health services, has announced that certain stockholders are planning to sell 20 million shares of the company's common stock. This sale is to be conducted under a shelf registration statement with the Securities and Exchange Commission (SEC). The underwriters, led by Morgan Stanley, Goldman Sachs & Co. LLC, and TPG Capital BD, LLC, have the option to purchase up to an additional 3 million shares from the selling stockholders.
The proceeds from the sale of shares will go entirely to the selling stockholders, with the company itself not selling any stock and therefore not receiving any proceeds from this offering. The shelf registration statement, which includes a prospectus, was filed by LifeStance with the SEC on May 21, 2024, and became effective immediately.
LifeStance was founded in 2017 and has since grown to be one of the largest providers of both virtual and in-person mental health care in the United States. The company employs approximately 6,800 mental health professionals across 33 states and over 550 centers. LifeStance focuses on delivering personalized care for a range of mental health conditions to children, adolescents, and adults.
The offering of the shares will be made solely by means of a prospectus and a related prospectus supplement, which are available upon request from the underwriters. Potential investors are encouraged to read the prospectus and other relevant documents filed with the SEC before investing.
InvestingPro Insights
As LifeStance Health Group, Inc. (NASDAQ: LFST) navigates a significant stock sale by its shareholders, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, LifeStance boasts a market capitalization of $2.86 billion, indicating a robust valuation in the outpatient mental health services sector. Despite challenges, the company has experienced a revenue growth of 21.39% over the last twelve months as of Q1 2024, showcasing its ability to expand its top-line figures.
Investors should note that LifeStance's stock has seen a strong return over the last month, with a 31.52% price total return, which could reflect market optimism about the company's future prospects. This is complemented by a 19.02% three-month price total return, further highlighting the stock's recent positive trajectory. However, it's important to consider the InvestingPro Tip that the stock is currently in overbought territory, according to the Relative Strength Index (RSI), which could signal a potential pullback.
For those considering an investment in LifeStance, it's worth noting that analysts, as per another InvestingPro Tip, do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. Additionally, the company does not pay dividends, which may influence investment decisions for those seeking regular income streams.
For a deeper dive into LifeStance's financials and stock performance, investors can access additional insights and metrics on InvestingPro. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of InvestingPro Tips, with a total of six tips currently listed for LFST.
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