Dimensional Fund Advisors LP Grows Position in HealthStream, Inc. $HSTM

Key Points

• Dimensional Fund Advisors increased its HealthStream position by 6.4% in the first quarter, bringing its holdings to 1.46 million shares worth about $30.2 million. Institutional investors collectively own 69.58% of the company.
• HealthStream exceeded second-quarter expectations: EPS was $0.23 versus the $0.17 consensus, while revenue rose 12.5% year over year to a record $83.7 million. Operating income, net income and adjusted EBITDA also posted double-digit growth.
• The company issued a favorable 2026 outlook, projecting revenue of $327 million to $332 million, while maintaining a $0.035 quarterly dividend and repurchasing $9.3 million of stock in the first half of the year. Despite the strong results, analysts retain a consensus “Hold” rating with a $27 price target, below the stock’s recent $29.80 level.

Dimensional Fund Advisors LP increased its position in shares of HealthStream, Inc. (NASDAQ:HSTM - Free Report) by 6.4% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 1,456,043 shares of the technology company's stock after acquiring an additional 87,177 shares during the quarter. Dimensional Fund Advisors LP owned approximately 4.95% of HealthStream worth $30,156,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently modified their holdings of HSTM. Copeland Capital Management LLC boosted its holdings in shares of HealthStream by 43.8% in 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. JPMorgan Chase & Co. lifted its stake in shares of HealthStream by 302.0% in the second quarter. JPMorgan Chase & Co. now owns 247,905 shares of the technology company's stock worth $6,860,000 after acquiring an additional 186,231 shares in the last quarter. Qube Research & Technologies Ltd grew its position in shares of HealthStream by 77.3% during the second quarter. Qube Research & Technologies Ltd now owns 251,953 shares of the technology company's stock worth $6,972,000 after buying an additional 109,883 shares in the last quarter. Numerai GP LLC acquired a new stake in shares of HealthStream in the 3rd quarter valued at about $1,911,000. Finally, Jane Street Group LLC grew its position in shares of HealthStream by 180.4% in the 4th quarter. Jane Street Group LLC now owns 96,887 shares of the technology company's stock worth $2,235,000 after acquiring an additional 62,339 shares in the last quarter. 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: Strong Q2 earnings beat: HealthStream reported diluted EPS of $0.23, up from $0.18 a year earlier and above the $0.17 analyst consensus. Revenue reached a record $83.7 million, rising 12.5% year over year and exceeding the $80.8 million estimate. HealthStream Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved: Operating income rose 41.4% to $8.3 million, net income increased 23.8% to $6.7 million, and adjusted EBITDA grew 16.9% to $20.6 million. The results suggest operating leverage alongside continued revenue growth. HealthStream Announces Second Quarter 2026 Results
• Positive Sentiment: 2026 outlook updated: The company projected full-year revenue of $327 million to $332 million, versus consensus of approximately $327.2 million, and net income of $19.5 million to $22.2 million. The outlook update was viewed favorably following the quarterly beat. HealthStream Posts Strong Q2 Results and Raises Guidance
• Positive Sentiment: Shareholder returns: HealthStream declared a quarterly dividend of $0.035 per share, payable August 28 to shareholders of record August 17, and repurchased 432,476 shares for $9.3 million during the first half of 2026. The company also reported $66.7 million in cash and marketable securities and no borrowed-money debt. HealthStream Q2 Revenue Rises to Record $83.7 Million
• Neutral Sentiment: Management’s Q2 earnings call provided additional commentary on the results and 2026 outlook, which investors will monitor for evidence that the growth trajectory can continue. HealthStream Q2 2026 Earnings Call Transcript
• Negative Sentiment: Some insider activity was unfavorable: reported transactions showed three insider sales and no purchases over the past six months. This is a secondary concern compared with the earnings beat and improved outlook.

HealthStream Trading Up 5.2%

NASDAQ HSTM opened at $29.80 on Wednesday. The company has a market cap of $870.76 million, a P/E ratio of 44.48, a P/E/G ratio of 3.21 and a beta of 0.44. The company has a fifty day simple moving average of $27.00 and a 200 day simple moving average of $23.41. HealthStream, Inc. has a 1 year low of $19.50 and a 1 year high of $31.11.

HealthStream (NASDAQ:HSTM - Get Free Report) last announced its earnings results on Monday, August 3rd. The technology company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.17 by $0.06. The business 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 6.83%. Equities research analysts forecast that HealthStream, Inc. will post 0.74 EPS for the current fiscal year.

HealthStream Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Monday, August 17th will be given a dividend of $0.035 per share. This represents a $0.14 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Monday, August 17th. HealthStream's payout ratio is 20.90%.

Analysts Set New Price Targets

A number of brokerages have issued reports on HSTM. Canaccord Genuity Group raised their target price on shares of HealthStream from $24.00 to $27.00 and gave the stock a "hold" rating in a report on Tuesday, July 21st. Wall Street Zen upgraded shares of HealthStream from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, Weiss Ratings upgraded shares of HealthStream from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Three analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $27.00.

Insider Buying and Selling at HealthStream

In other news, Director Linda Rebrovick sold 6,000 shares of HealthStream stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $29.00, for a total value of $174,000.00. Following the completion of the transaction, the director owned 51,329 shares in the company, valued at approximately $1,488,541. The trade was a 10.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kevin P. O'hara sold 3,000 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $24.08, for a total value of $72,240.00. Following the completion of the sale, the executive vice president owned 20,982 shares of the company's stock, valued at approximately $505,246.56. This trade represents a 12.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 11,000 shares of company stock worth $296,240. 20.40% of the stock is owned by insiders.

About HealthStream

HealthStream, Inc is a Nashville, Tennessee–based provider of workforce development and learning management solutions for healthcare organizations. Since its founding in 1990, the company has focused on helping hospitals, clinics and other care providers streamline staff training, ensure regulatory compliance and monitor employee performance. HealthStream's platform integrates online courses, skill competency assessments and credential management tools to support workforce readiness across the healthcare continuum.

The company's core offerings include a learning management system (LMS) designed specifically for clinical and nonclinical personnel, a competency management suite that tracks skill acquisition and validation, and a content library featuring evidence-based clinical and compliance training modules.

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