LifeStance Health Group, Inc. (LFST) experienced a significant 24-hour decline, with its stock price plunging 7.34% intraday. The sharp drop follows the recent announcement and pricing of a substantial secondary public offering by existing stockholders.

The decline is directly attributed to news that certain company stockholders are selling 35 million shares in a secondary underwritten public offering priced at $8.15 per share. This offering price represents a discount to the stock's recent trading levels, creating downward pressure on the share price as the market absorbs the additional supply of shares.

While the company itself is not selling shares in this offering and will not receive proceeds, the market typically reacts negatively to such large secondary offerings due to dilution concerns and the potential signal that insiders may be seeking to reduce their holdings. The offering is expected to settle in the coming days, with J.P. Morgan acting as the sole underwriter for the transaction.