Boston-based investment firm Silversmith Capital Partners has executed a significant sale of shares in LifeStance Health Group, Inc. (NASDAQ:LFST), a leading provider of outpatient mental health services. The transaction involved the disposal of 1,624,638 shares at a price of $5.89 per share, amounting to a total value of approximately $9.569 million.
The recent filing disclosed that the shares were sold on May 24, 2024, and following the transaction, Silversmith Capital Partners still holds a substantial number of shares in the company. The exact number of shares retained by the firm post-transaction totals 17,916,554.
Silversmith Capital Partners comprises several entities, including Silversmith Capital Partners I-A, L.P., Silversmith Capital Partners I-B, L.P., and Silversmith Capital Partners I-C, L.P., which collectively manage the shares. Jeffrey R. Crisan, the Manager of Silversmith Partners I GP, LLC, signed off on the transactions for each of the entities.
According to footnotes in the filing, Silversmith Capital Partners I-A, L.P. holds 12,327,585 shares, Silversmith Capital Partners I-B, L.P. holds 4,459,231 shares, and Silversmith Capital Partners I-C, L.P. holds 1,129,738 shares of LifeStance Health Group's common stock. The footnotes also clarify the nature of ownership and the relationships between the various Silversmith entities, noting that Silversmith Partners I GP, LLC is the general partner of the others and that the reported shares are held indirectly through these partnerships.
Moreover, the footnotes indicate that the Silversmith entities are part of a larger group of shareholders who, under a Stockholders Agreement, may collectively be considered a "group" owning more than 10% of LifeStance Health Group's outstanding common stock. This is important as it suggests a level of collective influence over the company by these major shareholders.
LifeStance Health Group, headquartered in Scottsdale, Arizona, operates across multiple states, offering a range of mental health services. The company's stock is publicly traded on the NASDAQ under the ticker symbol LFST.
This stock sale represents a notable realignment of Silversmith Capital Partners' investment in LifeStance Health Group, although the firm remains a significant shareholder. The transaction details provide investors and market observers with insight into the investment firm's movements and holdings within the healthcare sector.
InvestingPro Insights
As investors evaluate the implications of Silversmith Capital Partners' recent stock sale in LifeStance Health Group, Inc. (LFST), several key metrics from InvestingPro provide additional context to the company's financial health and market position. LifeStance, with a current market capitalization of $2.16 billion, has experienced a solid revenue growth of 21.39% over the last twelve months as of Q1 2024, reflecting its expanding footprint in the outpatient mental health service sector. Despite this growth, the company's profitability remains a concern, with a negative Price-to-Earnings (P/E) ratio of -18.17, indicating that analysts do not expect the company to be profitable this year.
InvestingPro Tips highlight that LifeStance has not been profitable over the last twelve months and does not pay a dividend to shareholders, which may influence the investment strategies of income-focused investors. Additionally, the company's stock price has seen a decline, with a 1-month price total return of -8.15% and a 3-month price total return of -31.14%, signaling recent market challenges.
For those looking to delve deeper into LifeStance's financials and future prospects, InvestingPro offers a comprehensive suite of analytical tools and additional tips. There are more InvestingPro Tips available at https://www.investing.com/pro/LFST, which could provide further insights into the company's performance and valuation. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, unlocking a wealth of data and expert analysis to inform their investment decisions.
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