HealthStream (NASDAQ:HSTM) Issues Earnings Results, Beats Estimates 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) issued its quarterly earnings data on Monday. The technology company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.02, Zacks reports. HealthStream had a return on equity of 5.70% and a net margin of 6.89%. The business had revenue of $74.40 million for the quarter, compared to analysts' expectations of $74.39 million. HealthStream updated its FY 2025 guidance to EPS.

HealthStream Stock Up 0.1%

Shares of HSTM stock traded up $0.02 on Friday, hitting $25.96. The stock had a trading volume of 22,695 shares, compared to its average volume of 178,700. HealthStream has a one year low of $25.36 and a one year high of $34.24. The business has a 50 day moving average price of $27.21 and a 200 day moving average price of $30.09. The company has a market cap of $792.28 million, a PE ratio of 38.74, a P/E/G ratio of 3.37 and a beta of 0.43.

HealthStream Announces Dividend

The company 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. This represents a $0.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Monday, August 18th. HealthStream's dividend payout ratio is currently 17.91%.

HealthStream declared that its Board of Directors has approved a stock repurchase plan on Thursday, May 8th that permits the company to buyback $25.00 million in outstanding shares. This buyback authorization permits the technology company to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On HealthStream

Large investors have recently modified their holdings of the business. Royal Bank of Canada increased its holdings in HealthStream by 194.2% during the first quarter. Royal Bank of Canada now owns 43,899 shares of the technology company's stock valued at $1,413,000 after buying an additional 28,977 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in HealthStream by 15.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 54,354 shares of the technology company's stock valued at $1,749,000 after purchasing an additional 7,211 shares in the last quarter. Finally, Jane Street Group LLC purchased a new position in HealthStream in the first quarter valued at about $1,532,000. Institutional investors own 69.58% of the company's stock.

Analysts Set New Price Targets

Separately, Canaccord Genuity Group cut their price target on shares of HealthStream from $29.00 to $28.00 and set a "hold" rating on the stock in a report on Thursday. Two research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $31.00.

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.