BlackRock Inc. Invests $357.95 Million in Waystar Holding Corp. $WAY

Key Points

• BlackRock acquired 17.4 million Waystar shares worth approximately $357.95 million, giving it a 9.09% stake in the healthcare technology company.
• Waystar exceeded quarterly expectations, reporting adjusted EPS of $0.43 versus $0.40 expected and revenue of $319.67 million, up 18.1% year over year.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $35, although several firms recently lowered their targets to $33; CEO Matthew Hawkins also sold about $1.5 million in shares under a pre-arranged trading plan.

BlackRock Inc. acquired a new stake in shares of Waystar Holding Corp. (NASDAQ:WAY - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 17,435,466 shares of the company's stock, valued at approximately $357,950,000. BlackRock Inc. owned approximately 9.09% of Waystar as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently added to or reduced their stakes in the company. Root Financial Partners LLC grew its stake in shares of Waystar by 6,475.0% in the 1st quarter. Root Financial Partners LLC now owns 1,052 shares of the company's stock valued at $25,000 after buying an additional 1,036 shares in the last quarter. Essential Partners LLC lifted its stake in Waystar by 1,432.7% in the first quarter. Essential Partners LLC now owns 1,548 shares of the company's stock valued at $37,000 after acquiring an additional 1,447 shares during the last quarter. Smartleaf Asset Management LLC grew its position in Waystar by 6,005.3% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,160 shares of the company's stock worth $38,000 after acquiring an additional 1,141 shares in the last quarter. Danske Bank A S bought a new stake in Waystar in the fourth quarter worth approximately $52,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Waystar by 3,219.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock worth $57,000 after purchasing an additional 1,352 shares during the last quarter.

Waystar Stock Performance

Shares of NASDAQ WAY opened at $24.21 on Wednesday. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.36. The business's 50 day moving average is $22.46 and its two-hundred day moving average is $22.66. The company has a market cap of $4.64 billion, a P/E ratio of 34.59, a P/E/G ratio of 0.99 and a beta of 0.06. Waystar Holding Corp. has a 12 month low of $17.26 and a 12 month high of $41.47.

Waystar (NASDAQ:WAY - Get Free Report) last posted 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 during the quarter, compared to analysts' expectations of $316.21 million. Waystar had a return on equity of 7.03% and a net margin of 11.18%.Waystar's revenue for the quarter was up 18.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.36 earnings per share. On average, equities analysts expect that Waystar Holding Corp. will post 1.47 EPS for the current year.

Insider Activity at Waystar

In other news, CEO Matthew J. Hawkins sold 60,038 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $25.01, for a total transaction of $1,501,550.38. Following the completion of the transaction, the chief executive officer owned 1,835,081 shares of the company's stock, valued at approximately $45,895,375.81. This represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Analysts Forecast Growth

A number of research analysts have recently commented on the company. KeyCorp reissued an "overweight" rating on shares of Waystar in a report on Friday, July 31st. Wells Fargo & Company reduced their target price on Waystar from $36.00 to $33.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Weiss Ratings cut Waystar from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, June 24th. Needham & Company LLC reiterated a "buy" rating and set a $33.00 price target on shares of Waystar in a report on Thursday, July 30th. Finally, Truist Financial reduced their price objective on shares of Waystar from $38.00 to $33.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average 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.

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