HealthStream (NASDAQ:HSTM) Stock Rating Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded HealthStream from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with one Buy rating, three Hold ratings, and a $27.00 average price target.
• HealthStream reported quarterly EPS of $0.23, exceeding the $0.17 consensus estimate, while revenue of $83.73 million also topped expectations. The stock opened at $33.13, near its 12-month high of $34.48.
• CEO Robert Frist Jr. sold 144,068 shares for approximately $4.25 million; insiders retain a 20.40% stake, while institutional investors own 69.58% of the company.

HealthStream (NASDAQ:HSTM - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other research analysts have also weighed in on the stock. Canaccord Genuity Group lifted their price objective on shares of HealthStream from $24.00 to $27.00 and gave the company a "hold" rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded HealthStream from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Finally, Freedom Capital upgraded HealthStream to a "hold" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $27.00.

HealthStream Stock Down 1.8%

HSTM opened at $33.13 on Friday. The company has a market capitalization of $968.06 million, a price-to-earnings ratio of 46.01, a PEG ratio of 3.91 and a beta of 0.42. The firm has a 50-day moving average price of $29.86 and a 200-day moving average price of $26.62. HealthStream has a twelve month low of $19.50 and a twelve month high of $34.48.

HealthStream (NASDAQ:HSTM - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The technology company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.06. The company had revenue of $83.73 million for the quarter, compared to analyst estimates of $80.82 million. HealthStream had a net margin of 6.60% and a return on equity of 6.81%. On average, sell-side analysts expect that HealthStream will post 0.72 earnings per share for the current fiscal year.

Insider Buying and Selling at HealthStream

In related news, CEO Robert Frist, Jr. sold 144,068 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $29.50, for a total value of $4,250,006.00. Following the transaction, the chief executive officer directly owned 3,907,038 shares in the company, valued at approximately $115,257,621. This represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 20.40% of the company's stock.

Institutional Investors Weigh In On HealthStream

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of HealthStream in the 2nd quarter worth about $111,184,000. Copeland Capital Management LLC increased its position in shares of HealthStream by 43.8% during the 1st quarter. Copeland Capital Management LLC now owns 1,276,739 shares of the technology company's stock valued at $26,441,000 after purchasing an additional 389,186 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of HealthStream during the 2nd quarter valued at about $6,199,000. Man Group plc purchased a new position in shares of HealthStream during the 2nd quarter valued at about $3,894,000. Finally, Bank of America Corp DE purchased a new position in shares of HealthStream during the 2nd quarter valued at about $3,349,000. Institutional investors own 69.58% of the company's stock.

HealthStream Company Profile

HealthStream, Inc provides workforce solutions for the healthcare industry. The company develops software and services designed to help healthcare organizations manage employee learning, performance, credentialing, and other workforce-related processes.

Its offerings include online learning and education management, workforce development tools, competency and performance management, and credentialing solutions. HealthStream also provides content and administrative services intended to support regulatory compliance, professional development, and operational efficiency for healthcare employers.

Based in Nashville, Tennessee, HealthStream primarily serves healthcare organizations in the United States, including hospitals, health systems, medical practices, and other healthcare providers.

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