Club Industry is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Akradi Sells More Than Half a Million Shares of Life Time Fitness Stock

CHANHASSEN, MN -- Shares of Life Time Fitness stock fell to an all-time low after a margin loan call on Thursday forced Life Time CEO Bahram Akradi to sell 582,000 of his shares, worth $11 million and making up about 13 percent of Akradi’s entire direct holdings in the company.

On Friday, Life Time shares dropped $1.11, or 5.8 percent, to close at $17.90. Life Time had a six-month high of $41.50 in September. The stock has lost 64 percent this year.

Akradi, Life Time’s biggest shareholder, reportedly owned 4.3 million shares of Life Time stock in May. Approximately 3.5 million shares of Akradi’s stock remain subject to pledges under margin loans, according to a company statement.

The shares of stock were sold by one of the financial institutions that made some of the loans to cover Akradi’s obligations, according to the company. In light of current market conditions, further sales of Akradi’s Life Time stock may occur to satisfy the minimum margin requirements under the loans.

Margin loans are backed by stock, but the value of that stock must maintain preset levels, according to the Minneapolis/St. Paul Business Journal. When values fall below those benchmarks, the lender will issue a “margin call,” forcing the borrower to either liquidate some of his or her stock or add more cash to the account, according to the Business Journal.

Related Stories

TAGS: News
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.