Why Lifestance Health Group (LSFT) Stock Is Falling

LifeStance Health Group Inc LFST shares are trading lower by 19.8% to $6.00 during Wednesday’s session after the company announced pricing of a 20 million share offering by selling stockholders.

The company’s secondary public offering of 20 million shares of its common stock at $6.25 per share. The underwriters have a 30-day option to purchase an additional 3 million shares from certain stockholders.

The selling stockholders will receive all the proceeds, as LifeStance itself is not selling any shares or receiving any proceeds from the offering. The offering is anticipated to close around May 24, pending customary closing conditions.

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Should I Sell My LFST Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of LifeStance Health have lost 26.55% year to date. This compares to the average annual return of -30.1%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. LifeStance Health Gr stock currently has an RSI of 69.27, indicating neutral conditions.

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LFST has a 52-week high of $9.59 and a 52-week low of $4.74.