Envestnet Asset Management Inc. Boosts Holdings in HealthStream, Inc. (NASDAQ:HSTM)

Key Points

• Envestnet Asset Management Inc. increased its stake in HealthStream, Inc. by 186.3%, owning a total of 125,457 shares valued at approximately $4.04 million.
• HealthStream announced a $25 million share repurchase program, indicative of management's belief that the stock is undervalued.
• The company's quarterly dividend of $0.031 per share results in an annual yield of 0.46%, with a dividend payout ratio of only 19.05%.

Envestnet Asset Management Inc. lifted its position in shares of HealthStream, Inc. (NASDAQ:HSTM - Free Report) by 186.3% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 125,457 shares of the technology company's stock after buying an additional 81,644 shares during the quarter. Envestnet Asset Management Inc. owned approximately 0.41% of HealthStream worth $4,037,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of HSTM. First Horizon Advisors Inc. increased its holdings in shares of HealthStream by 99.6% in the 1st quarter. First Horizon Advisors Inc. now owns 1,056 shares of the technology company's stock worth $34,000 after buying an additional 527 shares during the last quarter. GAMMA Investing LLC grew its holdings in HealthStream by 30.8% during the 1st quarter. GAMMA Investing LLC now owns 2,082 shares of the technology company's stock valued at $67,000 after purchasing an additional 490 shares during the last quarter. New Age Alpha Advisors LLC bought a new position in HealthStream during the 4th quarter valued at about $80,000. Meeder Asset Management Inc. bought a new position in HealthStream during the 4th quarter valued at about $114,000. Finally, Bessemer Group Inc. grew its holdings in HealthStream by 1,074.6% during the 4th quarter. Bessemer Group Inc. now owns 3,747 shares of the technology company's stock valued at $119,000 after purchasing an additional 3,428 shares during the last quarter. 69.58% of the stock is currently owned by institutional investors.

HealthStream Trading Up 0.1%

Shares of HSTM traded up $0.02 during mid-day trading on Tuesday, hitting $26.81. The company's stock had a trading volume of 4,037 shares, compared to its average volume of 175,791. The company's 50-day moving average is $27.50 and its 200-day moving average is $30.38. HealthStream, Inc. has a 52-week low of $25.72 and a 52-week high of $34.24. The firm has a market capitalization of $818.09 million, a price-to-earnings ratio of 42.55, a PEG ratio of 3.46 and a beta of 0.42.

HealthStream (NASDAQ:HSTM - Get Free Report) last announced its quarterly earnings results on Monday, May 5th. The technology company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02). HealthStream had a return on equity of 5.36% and a net margin of 6.54%. The business had revenue of $73.49 million during the quarter, compared to analysts' expectations of $74.93 million. During the same period in the previous year, the company posted $0.17 EPS. As a group, sell-side analysts predict that HealthStream, Inc. will post 0.63 earnings per share for the current fiscal year.

HealthStream announced that its board has approved a share buyback plan on Thursday, May 8th that permits the company to buyback $25.00 million in shares. This buyback authorization permits the technology company to reacquire up to 3% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

HealthStream Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Monday, May 19th were given a $0.031 dividend. The ex-dividend date was Monday, May 19th. This represents a $0.12 annualized dividend and a dividend yield of 0.46%. HealthStream's payout ratio is presently 19.05%.

Analysts Set New Price Targets

Separately, Canaccord Genuity Group cut their price target on shares of HealthStream from $30.00 to $29.00 and set a "hold" rating on the stock in a report on Thursday, May 15th. Two analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $31.50.

HealthStream Company Profile

HealthStream, Inc provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company's solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs.