HealthStream (NASDAQ:HSTM) Hits New 12-Month Low - Here's Why

Key Points

• HealthStream's stock reached a new 52-week low of $25.54 after experiencing a decline, raising concerns about potential selling.
• Analysts have recently adjusted their price target for HealthStream, with Canaccord Genuity Group lowering it from $30.00 to $29.00 while maintaining a "hold" rating.
• The company declared a quarterly dividend of $0.031 per share, reflecting a dividend yield of 0.5%, and has also authorized a $25 million stock buyback program.

HealthStream, Inc. (NASDAQ:HSTM - Get Free Report) reached a new 52-week low during mid-day trading on Friday . The company traded as low as $25.67 and last traded at $25.54, with a volume of 10336 shares traded. The stock had previously closed at $26.16.

Wall Street Analysts Forecast Growth

Separately, Canaccord Genuity Group decreased their price objective on shares of HealthStream from $30.00 to $29.00 and set a "hold" rating for the company in a 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, HealthStream has a consensus rating of "Moderate Buy" and a consensus price target of $31.50.

HealthStream Price Performance

The stock has a market cap of $785.71 million, a PE ratio of 40.86, a P/E/G ratio of 3.31 and a beta of 0.43. The firm's 50 day moving average price is $27.33 and its two-hundred day moving average price is $30.19.

HealthStream (NASDAQ:HSTM - Get Free Report) last posted its earnings results on Monday, May 5th. The technology company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02). The business had revenue of $73.49 million during the quarter, compared to analysts' expectations of $74.93 million. HealthStream had a return on equity of 5.36% and a net margin of 6.54%. During the same quarter in the previous year, the business earned $0.17 EPS. Analysts anticipate that HealthStream, Inc. will post 0.63 earnings per share for the current year.

HealthStream declared that its board has approved a share repurchase plan on Thursday, May 8th that permits the company to repurchase $25.00 million in shares. This repurchase authorization permits the technology company to purchase up to 3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On HealthStream

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of HealthStream by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 3,055,060 shares of the technology company's stock valued at $97,151,000 after acquiring an additional 92,067 shares during the period. Copeland Capital Management LLC increased its stake in shares of HealthStream by 15.6% in the second quarter. Copeland Capital Management LLC now owns 882,950 shares of the technology company's stock worth $24,431,000 after buying an additional 119,260 shares during the period. Geode Capital Management LLC increased its position in HealthStream by 2.9% during the 4th quarter. Geode Capital Management LLC now owns 694,274 shares of the technology company's stock valued at $22,082,000 after purchasing an additional 19,510 shares during the period. Harbor Capital Advisors Inc. increased its position in HealthStream by 2.4% during the 1st quarter. Harbor Capital Advisors Inc. now owns 424,790 shares of the technology company's stock valued at $13,670,000 after purchasing an additional 10,003 shares during the period. Finally, Northern Trust Corp increased its position in HealthStream by 26.0% during the 1st quarter. Northern Trust Corp now owns 386,127 shares of the technology company's stock valued at $12,426,000 after purchasing an additional 79,687 shares during the period. 69.58% of the stock is currently owned by institutional investors.

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.