Advent International L.P. Acquires New Shares in Waystar Holding Corp. $WAY

Key Points

• Advent International acquired 11.06 million Waystar shares worth approximately $227.1 million, giving it a 5.77% stake and making Waystar its fifth-largest portfolio holding.
• Waystar reported quarterly earnings of $0.43 per share, beating estimates by $0.03, while revenue rose 18.1% year over year to $319.7 million. The stock opened at $24.21, down 4.5%.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $35 target price, although several firms recently lowered their targets; CEO Matthew Hawkins also sold $1.5 million in shares under a pre-arranged trading plan.

Advent International L.P. purchased a new stake in Waystar Holding Corp. (NASDAQ:WAY - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 11,059,899 shares of the company's stock, valued at approximately $227,060,000. Waystar comprises 1.3% of Advent International L.P.'s portfolio, making the stock its 5th biggest position. Advent International L.P. owned 5.77% of Waystar at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Canada Pension Plan Investment Board bought a new position in shares of Waystar during the 2nd quarter worth approximately $390,593,000. BlackRock Inc. bought a new stake in shares of Waystar in the second quarter worth $357,950,000. Alliancebernstein L.P. lifted its position in shares of Waystar by 3,883.4% in the second quarter. Alliancebernstein L.P. now owns 3,268,932 shares of the company's stock worth $133,601,000 after purchasing an additional 3,186,869 shares in the last quarter. Jupiter Topco LLC acquired a new position in Waystar during the second quarter worth $58,960,000. Finally, Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Waystar in the 2nd quarter valued at $43,314,000.

Waystar Stock Down 4.5%

WAY opened at $24.21 on Wednesday. Waystar Holding Corp. has a 1-year low of $17.26 and a 1-year high of $41.47. The stock's fifty day simple moving average is $22.46 and its 200 day simple moving average is $22.66. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.36. The stock has a market cap of $4.64 billion, a PE ratio of 34.59, a price-to-earnings-growth ratio of 0.99 and a beta of 0.06.

Waystar (NASDAQ:WAY - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.03. The company had revenue of $319.67 million for the quarter, compared to analyst estimates of $316.21 million. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The company's revenue was up 18.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.36 earnings per share. As a group, research analysts expect that Waystar Holding Corp. will post 1.47 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Matthew J. Hawkins sold 60,038 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $25.01, for a total value of $1,501,550.38. Following the completion of the sale, the chief executive officer directly owned 1,835,081 shares in the company, valued at approximately $45,895,375.81. The trade was a 3.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.50% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Barclays upped their target price on Waystar from $25.00 to $27.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Truist Financial lowered their price target on Waystar from $38.00 to $33.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Citigroup reiterated a "buy" rating on shares of Waystar in a research note on Monday, July 20th. Weiss Ratings downgraded Waystar from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, June 24th. Finally, UBS Group decreased their target price on shares of Waystar from $37.00 to $33.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $35.00.

About Waystar

Waystar NASDAQ: WAY is a leading provider of cloud-based revenue cycle management and payment solutions for healthcare organizations. The company's unified platform streamlines the entire financial continuum of patient care, from eligibility verification and claim submission to payment reconciliation and patient billing. By automating key processes and improving claim accuracy, Waystar helps providers reduce administrative overhead, accelerate cash flow and enhance overall revenue performance.

At the core of Waystar's offering is a SaaS-based architecture that integrates seamlessly with existing electronic health record (EHR) systems and payer networks.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source