HealthStream (NASDAQ:HSTM) Shares Pass Above 200-Day Moving Average - Here's What Happened

Key Points

• HealthStream shares moved above their 200-day moving average on Thursday, trading as high as $26.31 before last changing hands near $25.70. The move came on volume of 181,073 shares.
• The company beat quarterly earnings and revenue expectations, reporting $0.20 EPS versus $0.16 expected and $81.2 million in revenue versus $79.68 million expected. Analysts currently have a consensus Hold rating with an average price target of $24.00.
• HealthStream also recently paid a quarterly dividend and authorized a $10 million share buyback, while insiders made recent stock sales. The dividend is $0.035 per share, and the buyback covers up to about 1.7% of shares outstanding.

Shares of HealthStream, Inc. (NASDAQ:HSTM - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $22.48 and traded as high as $26.31. HealthStream shares last traded at $25.70, with a volume of 181,073 shares traded.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Weiss Ratings upgraded HealthStream from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday. Canaccord Genuity Group raised their price objective on shares of HealthStream to $24.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. 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 analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $24.00.

HealthStream Stock Performance

The firm's 50-day moving average is $23.90 and its 200 day moving average is $22.48. The firm has a market capitalization of $750.95 million, a PE ratio of 38.36, a price-to-earnings-growth ratio of 2.96 and a beta of 0.47.

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

HealthStream Dividend Announcement

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

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

Insider Activity at HealthStream

In related news, Director Linda Rebrovick sold 2,000 shares of HealthStream stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $25.00, for a total transaction of $50,000.00. Following the completion of the transaction, 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 sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 company's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $24.08, for a total value of $72,240.00. Following the completion of the sale, the executive vice president directly owned 20,982 shares in the company, valued at approximately $505,246.56. The trade was a 12.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 20.40% of the company's stock.

Institutional Trading of HealthStream

Several institutional investors and hedge funds have recently made changes to their positions in HSTM. Danske Bank A S increased its position in HealthStream by 175.0% during the 4th quarter. Danske Bank A S now owns 1,100 shares of the technology company's stock worth $25,000 after purchasing an additional 700 shares in the last quarter. Essential Partners LLC acquired a new position in HealthStream in the 1st quarter valued at about $25,000. Hantz Financial Services Inc. lifted its holdings in HealthStream by 2,035.5% in the 4th 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 in the last quarter. Aquatic Capital Management LLC purchased a new position in HealthStream in the 3rd quarter valued at about $40,000. Finally, Tower Research Capital LLC TRC boosted its stake in shares of HealthStream by 241.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,407 shares of the technology company's stock worth $67,000 after purchasing an additional 1,702 shares during the last quarter. 69.58% of the stock is currently owned by hedge funds and other institutional investors.

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.

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