HealthStream (NASDAQ:HSTM) Issues Quarterly Earnings Results

Key Points

• Huge reported EPS surprise: HealthStream said quarterly EPS of $999.00, beating the consensus $0.16 by $998.84, while posting a net margin of 6.03% and a return on equity of 5.98%.
• Capital returns initiated: The board authorized a $10.0 million share repurchase plan (up to 1.7% of shares) and raised the quarterly dividend to $0.035 ($0.14 annualized), a 0.7% yield and a 22.95% payout ratio.
• Market and analyst backdrop: Shares traded at $21.25 (52‑week range $19.50–$33.95) with a $625.2M market cap and P/E of 34.84; analysts' consensus is a Reduce rating and an average $25 price target.

HealthStream (NASDAQ:HSTM - Get Free Report) released its earnings results on Monday. The technology company reported $999.00 earnings per share for the quarter, beating the consensus estimate of $0.16 by $998.84, reports. HealthStream had a net margin of 6.03% and a return on equity of 5.98%.

HealthStream Stock Performance

Shares of NASDAQ:HSTM traded up $0.53 during trading hours on Monday, hitting $21.25. 357,055 shares of the company's stock traded hands, compared to its average volume of 307,841. HealthStream has a 52 week low of $19.50 and a 52 week high of $33.95. The company's fifty day simple moving average is $21.04 and its two-hundred day simple moving average is $22.64. The company has a market cap of $625.22 million, a price-to-earnings ratio of 34.84, a price-to-earnings-growth ratio of 2.38 and a beta of 0.41.

HealthStream Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Monday, March 9th were paid a dividend of $0.035 per share. This represents a $0.14 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, March 9th. This is an increase from HealthStream's previous quarterly dividend of $0.03. HealthStream's dividend payout ratio is 22.95%.

HealthStream declared that its Board of Directors has initiated a share repurchase plan on Friday, March 13th that permits the company to buyback $10.00 million in shares. This buyback authorization permits the technology company to purchase up to 1.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have weighed in on HSTM. Canaccord Genuity Group set a $25.00 target price on shares of HealthStream in a research note on Thursday, January 8th. Citigroup reaffirmed a "market perform" rating on shares of HealthStream in a report on Tuesday, January 6th. Finally, Weiss Ratings lowered HealthStream from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, March 18th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $25.00.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Lazard Asset Management LLC boosted its holdings in shares of HealthStream by 8.5% during the fourth quarter. Lazard Asset Management LLC now owns 42,697 shares of the technology company's stock worth $985,000 after purchasing an additional 3,340 shares during the period. Franklin Resources Inc. boosted its position in HealthStream by 9.7% during the fourth quarter. Franklin Resources Inc. now owns 37,450 shares of the technology company's stock valued at $864,000 after purchasing an additional 3,307 shares during the last quarter. Walleye Capital LLC acquired a new stake in HealthStream during the fourth quarter valued at $754,000. Campbell & CO Investment Adviser LLC boosted its position in HealthStream by 8.4% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 29,345 shares of the technology company's stock valued at $677,000 after purchasing an additional 2,282 shares during the last quarter. Finally, Engineers Gate Manager LP boosted its position in HealthStream by 24.1% during the fourth quarter. Engineers Gate Manager LP now owns 27,131 shares of the technology company's stock valued at $626,000 after purchasing an additional 5,267 shares during the last quarter. 69.58% of the stock is currently owned by institutional investors and hedge funds.

About HealthStream

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.

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