HealthStream (NASDAQ:HSTM) Posts Quarterly Earnings Results

Key Points

• Beat estimates: HealthStream reported EPS of $0.20 versus the $0.16 consensus and revenue of $81.2M versus $79.7M, with a 6.03% net margin.
• Capital returns ramped up: the company raised its quarterly dividend to $0.035 (annualized $0.14, ~0.7% yield) and authorized a $10.0 million share buyback (about 1.7% of shares).
• Market context: the stock carries a ~$625M market cap and a P/E of 34.8, trades in a 52-week range of $19.50–$33.95, and has an average analyst rating of Reduce with a $25 consensus target while institutions own ~69.6%.

HealthStream (NASDAQ:HSTM - Get Free Report) announced its earnings results on Monday. The technology company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.16 by $0.04, Zacks reports. HealthStream had a net margin of 6.03% and a return on equity of 5.98%. The company had revenue of $81.20 million during the quarter, compared to analysts' expectations of $79.68 million.

HealthStream Price Performance

HealthStream stock opened at $21.25 on Tuesday. HealthStream has a one year low of $19.50 and a one year high of $33.95. The company's fifty day moving average price is $21.04 and its two-hundred day moving average price is $22.64. The company has a market capitalization of $625.17 million, a price-to-earnings ratio of 34.84, a PEG ratio of 2.38 and a beta of 0.41.

HealthStream Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Monday, March 9th were given a $0.035 dividend. This is a positive change from HealthStream's previous quarterly dividend of $0.03. This represents a $0.14 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, March 9th. HealthStream's payout ratio is presently 22.95%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Invesco Ltd. raised its stake in shares of HealthStream by 0.9% in the 4th quarter. Invesco Ltd. now owns 151,691 shares of the technology company's stock valued at $3,500,000 after acquiring an additional 1,307 shares in the last quarter. Susquehanna Portfolio Strategies LLC bought a new stake in HealthStream during the fourth quarter worth approximately $721,000. Numerai GP LLC grew its holdings in HealthStream by 13.8% during the fourth quarter. Numerai GP LLC now owns 77,026 shares of the technology company's stock valued at $1,777,000 after purchasing an additional 9,339 shares during the last quarter. Millennium Management LLC grew its holdings in HealthStream by 188.2% during the fourth quarter. Millennium Management LLC now owns 64,507 shares of the technology company's stock valued at $1,488,000 after purchasing an additional 42,124 shares during the last quarter. Finally, Man Group plc grew its holdings in HealthStream by 177.0% during the fourth quarter. Man Group plc now owns 50,718 shares of the technology company's stock valued at $1,170,000 after purchasing an additional 32,406 shares during the last quarter. Institutional investors and hedge funds own 69.58% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on HSTM. Citigroup restated a "market perform" rating on shares of HealthStream in a report on Tuesday, January 6th. Canaccord Genuity Group set a $25.00 price target on HealthStream in a research report on Thursday, January 8th. Finally, Weiss Ratings downgraded HealthStream from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, March 18th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $25.00.

HealthStream announced that its Board of Directors has initiated a share buyback program on Friday, March 13th that allows the company to repurchase $10.00 million in shares. This repurchase authorization allows the technology company to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

HealthStream Company Profile

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.