Invesco Ltd. Trims Position in HealthStream, Inc. $HSTM

Key Points

• Invesco Ltd. has reduced its shareholding in HealthStream, Inc. by 35.8%, now owning approximately 0.52% of the company, valued at $5.13 million.
• HealthStream announced a $25 million stock buyback plan, indicating leadership's belief that the shares are undervalued.
• The company has disclosed a quarterly dividend of $0.031, with a dividend yield of 0.4% and a payout ratio of 17.91%.

Invesco Ltd. reduced its position in shares of HealthStream, Inc. (NASDAQ:HSTM - Free Report) by 35.8% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 159,391 shares of the technology company's stock after selling 88,830 shares during the period. Invesco Ltd. owned approximately 0.52% of HealthStream worth $5,129,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Diversified Trust Co grew its stake in HealthStream by 5.0% in the 1st quarter. Diversified Trust Co now owns 9,174 shares of the technology company's stock worth $295,000 after buying an additional 441 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of HealthStream by 30.8% during the 1st quarter. GAMMA Investing LLC now owns 2,082 shares of the technology company's stock worth $67,000 after acquiring an additional 490 shares during the last quarter. First Horizon Advisors Inc. grew its position in HealthStream by 99.6% in the first quarter. First Horizon Advisors Inc. now owns 1,056 shares of the technology company's stock worth $34,000 after acquiring an additional 527 shares in the last quarter. Comerica Bank increased its stake in HealthStream by 7.1% in the fourth quarter. Comerica Bank now owns 9,373 shares of the technology company's stock valued at $298,000 after acquiring an additional 618 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in HealthStream by 62.5% in the first quarter. PNC Financial Services Group Inc. now owns 2,625 shares of the technology company's stock valued at $84,000 after acquiring an additional 1,010 shares during the last quarter. Institutional investors own 69.58% of the company's stock.

Insider Activity at HealthStream

In related news, EVP Kevin P. O'hara sold 2,000 shares of HealthStream stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $27.97, for a total value of $55,940.00. Following the transaction, the executive vice president directly owned 17,137 shares of the company's stock, valued at $479,321.89. The trade was a 10.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 20.60% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group dropped their price target on HealthStream from $29.00 to $28.00 and set a "hold" rating for the company in a research note on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $31.00.

HealthStream Trading Up 0.3%

Shares of NASDAQ:HSTM traded up $0.09 on Tuesday, reaching $28.17. 4,712 shares of the company traded hands, compared to its average volume of 179,577. The stock has a market capitalization of $834.81 million, a P/E ratio of 41.98, a price-to-earnings-growth ratio of 3.52 and a beta of 0.47. The business's 50-day simple moving average is $26.96 and its 200 day simple moving average is $29.36. HealthStream, Inc. has a 52 week low of $25.36 and a 52 week high of $34.24.

HealthStream (NASDAQ:HSTM - Get Free Report) last released its earnings results on Monday, August 4th. The technology company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. The company had revenue of $74.40 million during the quarter, compared to analyst estimates of $74.39 million. HealthStream had a return on equity of 5.70% and a net margin of 6.89%. HealthStream has set its FY 2025 guidance at EPS. Sell-side analysts expect that HealthStream, Inc. will post 0.63 EPS for the current fiscal year.

HealthStream announced that its board has initiated a stock buyback program on Thursday, May 8th that allows the company to repurchase $25.00 million in outstanding shares. This repurchase authorization allows the technology company to purchase up to 3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

HealthStream Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, August 18th were issued a $0.031 dividend. The ex-dividend date was Monday, August 18th. This represents a $0.12 annualized dividend and a dividend yield of 0.4%. HealthStream's dividend payout ratio (DPR) is currently 17.91%.

HealthStream 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.