HSBC buys new $1.3M stake in LifeStance as revenue climbs 26%
What's the deal? HSBC HoldingsDealroom has a profile for this one. Try Dealroom → acquired a new position in mental health provider LifeStance Health GroupDealroom has a profile for this one. Try Dealroom → during the second quarter, buying 119,006 shares worth about $1,286,000, according to HoldingsChannel.
Why now? The purchase follows a strong earnings report. On August 6, LifeStance posted quarterly revenue of $435.35 million, up 26.1% year on year and ahead of the $414.58 million analysts expected.
The numbers: LifeStance reported earnings of $0.06 per share, double the $0.03 consensus and a turnaround from a $0.01 per share loss a year earlier. It logged a return on equity of 3.39% and a net margin of 3.19%.
The stock opened at $12.36 on Tuesday, near its 52-week high of $12.97 and well above the $4.77 low. It carries a market cap of $4.79 billion and a price-to-earnings ratio of 95.08.
What's the endgame? HSBC joined a wave of institutional buying. Larson Financial GroupDealroom has a profile for this one. Try Dealroom →, KBC GroupDealroom has a profile for this one. Try Dealroom →, EverSource Wealth AdvisorsDealroom has a profile for this one. Try Dealroom →, Bayesian Capital ManagementDealroom has a profile for this one. Try Dealroom →, and PNC Financial ServicesDealroom has a profile for this one. Try Dealroom → all added or opened positions in recent quarters. Institutions now own 85.50% of the company.
Wall Street view: Analysts are broadly positive. BarclaysDealroom has a profile for this one. Try Dealroom → and JPMorganDealroom has a profile for this one. Try Dealroom → both lifted their price targets from $9.00 to $13.00, though JPMorgan kept a "neutral" rating. Goldman SachsDealroom has a profile for this one. Try Dealroom → began coverage in June with a "neutral" call and a $9.00 target. LifeStance holds a "Moderate Buy" consensus and an average price target of $12.38.
The signal: Rising institutional stakes and a run of earnings beats point to growing investor confidence in outpatient mental health, even as LifeStance's lofty valuation leaves little room for missteps.
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