HealthStream (NASDAQ:HSTM) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• HealthStream reported a quarterly earnings per share (EPS) of $0.18, exceeding analysts' estimates of $0.16 by $0.02.
• The company has initiated a $25 million share buyback plan, indicating management's belief that the stock is currently undervalued.
• HealthStream's stock has a consensus rating of "Moderate Buy" with an average target price of $31.50, despite a recent decrease in target price from Canaccord Genuity Group.

HealthStream (NASDAQ:HSTM - Get Free Report) posted its quarterly earnings data on Monday. The technology company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.02, Zacks reports. HealthStream had a return on equity of 5.66% and a net margin of 6.89%. The company had revenue of $74.40 million during the quarter, compared to analysts' expectations of $74.39 million. HealthStream updated its FY 2025 guidance to EPS.

HealthStream Trading Up 0.8%

Shares of NASDAQ:HSTM traded up $0.21 on Wednesday, reaching $25.95. 153,125 shares of the company were exchanged, compared to its average volume of 178,872. The company has a 50-day moving average of $27.28 and a 200-day moving average of $30.16. HealthStream has a 1-year low of $25.36 and a 1-year high of $34.24. The firm has a market cap of $792.12 million, a price-to-earnings ratio of 38.73, a price-to-earnings-growth ratio of 3.37 and a beta of 0.43.

HealthStream Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, August 18th will be issued a $0.031 dividend. The ex-dividend date of this dividend is Monday, August 18th. This represents a $0.12 dividend on an annualized basis and a yield of 0.5%. HealthStream's dividend payout ratio (DPR) is 19.05%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Jane Street Group LLC purchased a new position in HealthStream in the 1st quarter valued at approximately $1,532,000. Royal Bank of Canada grew its position in shares of HealthStream by 194.2% in the first quarter. Royal Bank of Canada now owns 43,899 shares of the technology company's stock valued at $1,413,000 after purchasing an additional 28,977 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of HealthStream by 15.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 54,354 shares of the technology company's stock worth $1,749,000 after purchasing an additional 7,211 shares during the last quarter. 69.58% of the stock is owned by hedge funds and other institutional investors.

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

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group cut their price objective on shares of HealthStream from $30.00 to $29.00 and set a "hold" rating for the company in a research report on Thursday, May 15th. Two investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average 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.