HealthStream (NASDAQ:HSTM) Given New $32.00 Price Target at Canaccord Genuity Group

Key Points

• Canaccord Genuity raised its HealthStream price target to $32 from $29 but maintained a Hold rating; the new target implies 1.48% downside from the prior close.
• Analyst sentiment remains cautious overall: MarketBeat reports a consensus Hold rating and $36 average price target, despite some recent upgrades and downgrades.
• HealthStream beat quarterly estimates, reporting earnings of $0.18 per share and $83.31 million in revenue; shares rose 2.6% to $32.48 on Wednesday.

HealthStream (NASDAQ:HSTM - Get Free Report) had its target price boosted by equities researchers at Canaccord Genuity Group from $29.00 to $32.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a "hold" rating on the technology company's stock. Canaccord Genuity Group's price objective would suggest a potential downside of 1.48% from the stock's previous close.

A number of other equities research analysts have also weighed in on HSTM. Weiss Ratings raised shares of HealthStream from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Citigroup reaffirmed a "market perform" rating on shares of HealthStream in a research note on Tuesday, October 27th. Freedom Capital upgraded shares of HealthStream to a "hold" rating in a report on Tuesday, October 13th. Wall Street Zen raised shares of HealthStream from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Craig Hallum downgraded HealthStream from a "buy" rating to a "hold" rating and set a $40.00 price objective for the company. in a report on Tuesday. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $36.00.

HealthStream Stock Up 2.6%

Shares of NASDAQ:HSTM traded up $0.81 during trading on Wednesday, hitting $32.48. 310,382 shares of the company were exchanged, compared to its average volume of 253,748. HealthStream has a 1-year low of $19.50 and a 1-year high of $35.60. The company has a market capitalization of $949.07 million, a P/E ratio of 46.40, a price-to-earnings-growth ratio of 4.00 and a beta of 0.45. The business's 50 day moving average is $31.11 and its 200-day moving average is $25.70.

HealthStream (NASDAQ:HSTM - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The technology company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.02. The business had revenue of $83.31 million for the quarter, compared to analyst estimates of $82.24 million. HealthStream had a return on equity of 6.58% and a net margin of 6.25%. As a group, sell-side analysts anticipate that HealthStream will post 0.72 earnings per share for the current year.

Insiders Place Their Bets

In other HealthStream news, CEO Robert Frist, Jr. sold 144,068 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $29.50, for a total transaction of $4,250,006.00. Following the sale, the chief executive officer owned 3,907,038 shares of the company's stock, valued at approximately $115,257,621. This represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Linda Rebrovick sold 12,000 shares of the stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $35.00, for a total value of $420,000.00. Following the sale, the director owned 39,329 shares of the company's stock, valued at approximately $1,376,515. The trade was a 23.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 20.40% of the company's stock.

Institutional Investors Weigh In On HealthStream

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in HealthStream during the second quarter worth $111,184,000. Dimensional Fund Advisors LP grew its holdings in HealthStream by 6.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,456,043 shares of the technology company's stock worth $30,156,000 after purchasing an additional 87,177 shares during the period. Copeland Capital Management LLC grew its holdings in HealthStream by 43.8% in the first quarter. Copeland Capital Management LLC now owns 1,276,739 shares of the technology company's stock worth $26,441,000 after purchasing an additional 389,186 shares during the period. Renaissance Technologies LLC increased its stake in HealthStream by 0.5% in the first quarter. Renaissance Technologies LLC now owns 477,848 shares of the technology company's stock valued at $9,896,000 after purchasing an additional 2,380 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of HealthStream by 21.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 377,945 shares of the technology company's stock valued at $7,827,000 after purchasing an additional 65,806 shares during the period. Institutional investors and hedge funds own 69.58% of the company's stock.

Key Headlines Impacting HealthStream

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: HealthStream reported Q3 EPS of $0.18 and revenue of $83.3 million, above estimates of about $0.15–$0.16 per share and $82.2 million, respectively. HealthStream Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The company forecast 2026 revenue of $331 million to $333 million, above the $329.5 million consensus estimate, while continuing its suite-and-bundle strategy. HealthStream forecasts 2026 revenue and advances suite-and-bundle strategy
• Neutral Sentiment: HealthStream declared a quarterly dividend of $0.035 per share, equivalent to $0.14 annualized and a yield of about 0.4%; this provides a modest shareholder return but is unlikely to be a major share-price catalyst. HealthStream declares dividend
• Negative Sentiment: Despite beating estimates, Q3 results drew attention to a margin squeeze, which may temper enthusiasm about the earnings beat and outlook. HealthStream stock drops after Q3 earnings margin squeeze
• Negative Sentiment: Craig-Hallum lowered its rating from Buy to Hold, citing high valuation. Its $40 price target remains above the referenced share price, but the downgrade signals caution about valuation. HealthStream downgraded on high valuation

About HealthStream

HealthStream, Inc provides workforce and provider solutions designed for healthcare organizations. Its software and services help hospitals, health systems, medical practices and other healthcare providers manage employee education, training, credentialing, compliance and professional development.

The company's offerings include learning management and education tools, competency and performance-management solutions, and systems for managing provider credentials, privileging and enrollment.

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