HealthStream (NASDAQ:HSTM) Share Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• HealthStream shares crossed above their 200-day moving average, trading as high as $26.76 and last changing hands near $26.00. This move comes after the stock had been below that long-term technical level of $22.45.
• Recent analyst updates were mixed but generally cautious: several firms maintained or upgraded ratings, yet the consensus remains “Hold” with an average price target of $24.00. Canaccord Genuity raised its target to $24.00, while Wall Street Zen upgraded the stock to “buy.”
• HealthStream posted better-than-expected quarterly results, earning $0.20 per share versus estimates of $0.16 and generating $81.2 million in revenue. The company also declared a small quarterly dividend and has an authorized $10 million share buyback plan.

HealthStream, Inc. (NASDAQ:HSTM - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $22.45 and traded as high as $26.76. HealthStream shares last traded at $26.00, with a volume of 242,723 shares trading hands.

Analyst Ratings Changes

A number of research firms recently weighed in on HSTM. Canaccord Genuity Group increased their price objective on shares of HealthStream to $24.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Weiss Ratings raised shares of HealthStream from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, June 3rd. Finally, Wall Street Zen upgraded shares of HealthStream from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $24.00.

HealthStream Price Performance

The stock has a market cap of $759.72 million, a P/E ratio of 38.81, a PEG ratio of 2.92 and a beta of 0.47. The company has a fifty day moving average of $23.25 and a 200 day moving average of $22.45.

HealthStream (NASDAQ:HSTM - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The technology company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.04. HealthStream had a return on equity of 6.47% and a net margin of 6.39%.The company had revenue of $81.20 million for the quarter, compared to analysts' expectations of $79.68 million. As a group, analysts anticipate that HealthStream, Inc. will post 0.74 EPS for the current year.

HealthStream Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Monday, May 18th were issued a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Monday, May 18th. HealthStream's dividend payout ratio is presently 20.90%.

HealthStream announced that its Board of Directors has authorized a share buyback plan 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 shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Insider Activity at HealthStream

In related news, Director Linda Rebrovick sold 2,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $25.00, for a total value of $50,000.00. Following the sale, the director directly owned 54,181 shares in the company, valued at $1,354,525. The trade was a 3.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kevin P. O'hara sold 3,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $24.08, for a total transaction of $72,240.00. Following the sale, the executive vice president directly owned 20,982 shares of the company's stock, valued at approximately $505,246.56. This represents a 12.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 20.40% of the company's stock.

Institutional Investors Weigh In On HealthStream

Institutional investors and hedge funds have recently modified their holdings of the stock. Danske Bank A S grew its holdings in shares of HealthStream by 175.0% in the 4th quarter. Danske Bank A S now owns 1,100 shares of the technology company's stock worth $25,000 after acquiring an additional 700 shares during the last quarter. Essential Partners LLC purchased a new stake in shares of HealthStream during the first quarter valued at $25,000. Hantz Financial Services Inc. lifted its holdings in shares of HealthStream by 2,035.5% during the fourth quarter. Hantz Financial Services Inc. now owns 1,324 shares of the technology company's stock valued at $31,000 after purchasing an additional 1,262 shares during the last quarter. Aquatic Capital Management LLC acquired a new position in shares of HealthStream in the 3rd quarter valued at $40,000. Finally, Tower Research Capital LLC TRC boosted its position in shares of HealthStream by 241.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,407 shares of the technology company's stock valued at $67,000 after purchasing an additional 1,702 shares during the period. Institutional investors and hedge funds own 69.58% of the company's stock.

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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