LifeStance Health rallies after sponsors' $590 mln share offload

JPMorgan Chase & Co.

Mon 20:30

Updates stock activity, adds context
** Outpatient mental healthcare provider LifeStance Health's LFST.O shares reverse early losses and last up 6.6% at $14.69 on Mon after secondary offering priced
** LFST stock on course for biggest one-day pct gain in three months
** Scottsdale, Arizona-based LFST early Mon announced 45 mln share offering by certain holders at $13.12 for deal size of $590.4 mln
** Offering priced at 4.7% discount to stock's last sale on Fri
** Private equity firms TPG Capital TPG.O and Summit Partners selling ~37.2 mln shares and ~7.8 mln shares, respectively, per the prospectus
** In addition, LFST concurrently repurchasing 2 mln of offering shares from bookrunners Barclays and JP Morgan
** TPG and Summit sold LFST shares in a Sept secondary offering priced at $12.35
** LFST had ~380.2 mln shares outstanding as of Oct 28
** Co early on Thurs posted Q3 rev beat, driven primarily by higher visit volumes from net clinician growth, and hiked its 2026 outlook
** With move on the session, stock up 108% YTD
** 9 of 11 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT of $16.50 up from $13 three months ago, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))