Richard McGuire’s Marcato Reveals New 7% Activist Stake in Life Time Fitness, Inc. (LTM)

In a new filing with the Securities and Exchange Commission, Richard McGuire‘s Marcato Capital Management disclosed a big activist stake in Life Time Fitness, Inc. (NYSE:LTM). The new activist position contains almost 2.93 million shares, with an aggregate value of $162.58 million, at the current price of the stock. According to the filing, the holding amasses over 7% of the outstanding stock.

Mick McGuire

Life Time Fitness, Inc. (NYSE:LTM) is a $2.3 billion market cap company, which owns and operated several multi-use sports and spa centers in resort-like regions. Its stock raised by 18% since the beginning of the year, and trails a P/E of around 19.00, below the industry average of 25.00. The company has recently reported its financial results for the first three months of the year, posting a 7% increase in revenues on the year, which amounted to $312 million. Life Time Fitness, Inc. (NYSE:LTM) also posted a net income of $28.3 million, and earnings per share of $0.69, in comparison with $28.1 million and $0.67 a year earlier.

Moreover, in a statement the company reiterated its outlook for the current fiscal year. Life Time Fitness, Inc. (NYSE:LTM) forecasts a revenue increase in the range of 8 to 9.5%, which translates to $1.30-$1.32 billion, and a net income gain between 3% and 7% to $125-$130 million. The earnings per share are expected in the range of $3.05 and $3.15.

Among hedge funds tracked by Insider Monkey, Marcato Capital Management is currently the largest shareholder of Life Time Fitness, Inc. (NYSE:LTM). Phill Gross and Robert Atchinson‘s Adage Capital Management has initiated a stake in the company during the first quarter of the year, and currently holds 575,000 shares, followed by Glenn J. Krevlin‘s Glenhill Advisors, which reported ownership of 436,100 shares, up by almost 200% on the quarter. Steven Cohen is also bullish on Life Time Fitness, raising his stake by more than 340% to 352,100 shares.

NCR Corporation (NYSE:NCR) and American Realty Capital Properties Inc (NASDAQ:ARCP) currently represent two largest holdings in Marcato’s equity portfolio, the fund holding 10.30 million shares and 20.99 million shares respectively, worth $376.5 million and $294.3 million.

Disclosure: none

Recommended Reading:

Mick McGuire’s Marcato Capital Issues Another Presentation on Sotheby’s (BID)

Mick MsGuire and Marcato Capital’s Top Stock Picks

Mick McGuire, Marcato Reiterate 6.7% Stake in Sotheby’s, Issues Presentation

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!