BUZZ-LifeStance Health shares rebound after sponsors sell $590 million worth of stock

Update stock price trend and supplement with background information.

November 9 - ** Outpatient mental health services provider LifeStance Health (stock code: LFST.O) reversed early losses on Monday to end up 6.6% at $14.69, after completing the pricing for a secondary offering.

** LFST shares are poised for the biggest single-day percentage gain in three months.

** Scottsdale, Arizona-based LFST announced Monday morning that certain shareholders will sell 45 million shares (link) at $13.12 each, in a deal worth $590.4 million.

** The offering price is a 4.7% discount to Friday’s closing price.

** According to the prospectus, private equity firms TPG Capital TPG.O and Summit Partners will sell approximately 37.2 million and 7.8 million shares, respectively (link) (link).

** In addition, LFST repurchased 2 million shares from bookrunners Barclays and JPMorgan as part of this offering.

** TPG and Summit also sold LFST shares in a secondary offering in September (link) at a price of $12.35 per share.

** As of October 28, LFST’s outstanding share count was approximately 380.2 million.

** On Thursday morning, the company reported better-than-expected third-quarter revenue (link), mainly driven by a net increase in clinicians and higher patient visits, and raised its outlook for 2026 results.

** Boosted by the day's rally, the stock is up 108% year-to-date.

** According to LSEG, 9 out of 11 analysts rate the stock as “strong buy” or “buy,” while 2 recommend “hold”; the median target price has risen to $16.50 from $13 three months ago.

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