LifeStance Health Group (NASDAQ:LFST) Shares Gap Up – What’s Next?

LifeStance Health Group, Inc. (NASDAQ:LFST)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $7.14, but opened at $7.99. LifeStance Health Group shares last traded at $7.5950, with a volume of 1,438,441 shares trading hands.

Key Stories Impacting LifeStance Health Group

Here are the key news stories impacting LifeStance Health Group this week:

• Positive Sentiment: Board authorizes a $100 million share repurchase (up to ~3.6% of shares), signaling management thinks the stock is undervalued and reducing float. LifeStance to Repurchase $100M
• Positive Sentiment: Multiple firms raised price targets and ratings (UBS to $12, Canaccord to $10, KeyCorp to $9), increasing visible upside and buy-side interest. Analyst Price Target Raises
• Positive Sentiment: Company set 2026 revenue target of $1.615B–$1.655B and highlighted progress on AI and EHR initiatives that can drive scale and margin expansion over time. 2026 Revenue Target & Initiatives
• Neutral Sentiment: Coverage roundup: several analysts reviewed the stock following the quarter; the market reaction depends on whether upgrades translate into sustained buy-side flows. 6 Analysts Assess LFST
• Negative Sentiment: Q4 EPS missed expectations (reported ~$0.03 vs. ~$0.06 expected) despite revenue beating estimates; EPS weakness and still-modest margins remain near-term headwinds. Q4 2025 Earnings Highlights
• Negative Sentiment: Selling stockholders filed a secondary offering of 25M shares (company not raising proceeds), creating potential supply/overhang that can cap near-term upside. Secondary Public Offering

Analyst Ratings Changes

LFST has been the topic of several analyst reports. Wall Street Zen upgraded shares of LifeStance Health Group from a “hold” rating to a “buy” rating in a report on Sunday, February 8th. BMO Capital Markets began coverage on LifeStance Health Group in a research note on Thursday, November 13th. They issued an “outperform” rating and a $8.00 price target on the stock. Barclays began coverage on LifeStance Health Group in a research report on Tuesday, December 9th. They issued an “overweight” rating and a $8.00 price target on the stock. BTIG Research upped their price objective on LifeStance Health Group from $10.00 to $11.00 and gave the company a “buy” rating in a report on Monday, February 2nd. Finally, UBS Group raised their target price on LifeStance Health Group from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $9.67.

LifeStance Health Group Price Performance

The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.18. The company has a fifty day moving average price of $7.12 and a two-hundred day moving average price of $6.18. The firm has a market cap of $2.82 billion, a P/E ratio of 362.18 and a beta of 1.12.

LifeStance Health Group (NASDAQ:LFST) last released its quarterly earnings results on Wednesday, February 25th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.02). LifeStance Health Group had a net margin of 0.68% and a return on equity of 0.66%. The company had revenue of $382.20 million during the quarter, compared to analyst estimates of $378.51 million. During the same quarter last year, the company earned ($0.01) EPS. The firm’s quarterly revenue was up 17.4% compared to the same quarter last year. Equities analysts anticipate that LifeStance Health Group, Inc. will post -0.18 earnings per share for the current year.

LifeStance Health Group announced that its Board of Directors has approved a share repurchase plan on Wednesday, February 25th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at LifeStance Health Group

In related news, Director Robert Bessler sold 119,942 shares of the firm’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $7.04, for a total value of $844,391.68. Following the completion of the transaction, the director owned 1,318,983 shares of the company’s stock, valued at approximately $9,285,640.32. This trade represents a 8.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Ann Varanakis sold 50,000 shares of the business’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $6.90, for a total transaction of $345,000.00. Following the sale, the insider directly owned 315,610 shares in the company, valued at $2,177,709. This trade represents a 13.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 270,086 shares of company stock valued at $1,891,264. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of LifeStance Health Group

Several institutional investors and hedge funds have recently bought and sold shares of LFST. Park Edge Advisors LLC increased its position in shares of LifeStance Health Group by 14.4% during the 4th quarter. Park Edge Advisors LLC now owns 11,863 shares of the company’s stock worth $84,000 after purchasing an additional 1,495 shares during the last quarter. California State Teachers Retirement System grew its position in shares of LifeStance Health Group by 1.6% in the 4th quarter. California State Teachers Retirement System now owns 125,682 shares of the company’s stock valued at $885,000 after acquiring an additional 1,966 shares during the period. Vident Advisory LLC grew its position in shares of LifeStance Health Group by 12.7% in the 2nd quarter. Vident Advisory LLC now owns 21,732 shares of the company’s stock valued at $112,000 after acquiring an additional 2,447 shares during the period. Xponance LLC increased its stake in shares of LifeStance Health Group by 26.4% during the 4th quarter. Xponance LLC now owns 13,144 shares of the company’s stock worth $93,000 after purchasing an additional 2,745 shares during the last quarter. Finally, State of Wyoming lifted its stake in LifeStance Health Group by 3.8% in the 3rd quarter. State of Wyoming now owns 89,927 shares of the company’s stock valued at $495,000 after purchasing an additional 3,298 shares during the last quarter. Institutional investors own 85.50% of the company’s stock.

About LifeStance Health Group

LifeStance Health Group (NASDAQ:LFST) is a leading provider of outpatient mental health services in the United States. Headquartered in New York City, the company operates a growing network of clinics that deliver integrated, patient-centered psychological and psychiatric care. LifeStance’s mission is to expand access to high-quality mental health treatment by combining evidence-based therapy modalities with personalized treatment plans.

The company’s service offerings include individual, family, and group psychotherapy, psychiatric medication management, psychological assessment, and telehealth services.