Waystar (NASDAQ:WAY) Stock Sees Unusually High Put Option Buying

Key Points

• Waystar saw unusually heavy put-option activity, with traders purchasing 3,100 puts—969% above the average daily volume of 290.
• The stock closed at $28.13, while the company reported quarterly EPS of $0.43 and revenue of $319.67 million, exceeding analyst estimates; revenue increased 18.1% year over year.
• Analysts remain broadly positive, assigning Waystar a consensus “Moderate Buy” rating and an average price target of $34.90, although insiders—including the CEO—have sold shares recently.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders acquired 3,100 put options on the stock. This is an increase of 969% compared to the average daily volume of 290 put options.

Waystar Price Performance

WAY traded down $0.08 on Friday, hitting $28.13. 319,528 shares of the company's stock were exchanged, compared to its average volume of 2,533,760. The stock has a market cap of $5.39 billion, a price-to-earnings ratio of 40.31, a P/E/G ratio of 1.13 and a beta of 0.18. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.36. Waystar has a fifty-two week low of $17.26 and a fifty-two week high of $38.10. The firm has a 50-day moving average price of $26.10 and a 200-day moving average price of $24.00.

Waystar (NASDAQ:WAY - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.40 by $0.03. Waystar had a return on equity of 7.03% and a net margin of 11.18%. The business had revenue of $319.67 million for the quarter, compared to analyst estimates of $316.21 million. During the same quarter in the prior year, the company posted $0.36 EPS. The company's quarterly revenue was up 18.1% on a year-over-year basis. As a group, equities analysts anticipate that Waystar will post 1.47 earnings per share for the current year.

Insider Buying and Selling at Waystar

In related news, CEO Matthew Hawkins sold 82,500 shares of the stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $26.23, for a total value of $2,163,975.00. Following the transaction, the chief executive officer directly owned 1,804,794 shares in the company, valued at $47,339,746.62. This trade represents a 4.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 247,500 shares of company stock worth $6,370,499 in the last quarter. 3.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of WAY. Mountain Pacific Investment Advisers LLC lifted its stake in shares of Waystar by 7.5% during the third quarter. Mountain Pacific Investment Advisers LLC now owns 61,456 shares of the company's stock valued at $1,557,000 after buying an additional 4,292 shares during the period. Oregon Public Employees Retirement Fund boosted its holdings in shares of Waystar by 3.4% during the third quarter. Oregon Public Employees Retirement Fund now owns 27,100 shares of the company's stock worth $687,000 after purchasing an additional 900 shares during the last quarter. ARGA Investment Management LP grew its position in shares of Waystar by 99.9% in the third quarter. ARGA Investment Management LP now owns 128,827 shares of the company's stock valued at $3,264,000 after purchasing an additional 64,377 shares during the period. VCI Wealth Management LLC purchased a new position in Waystar during the third quarter worth about $1,204,000. Finally, Salomon & Ludwin LLC lifted its position in Waystar by 310.6% during the third quarter. Salomon & Ludwin LLC now owns 1,010 shares of the company's stock worth $26,000 after buying an additional 764 shares during the period.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $39.00 target price on shares of Waystar in a research report on Friday, July 31st. Wolfe Research upgraded shares of Waystar to an "outperform" rating in a report on Thursday, August 13th. BMO Capital Markets restated an "outperform" rating on shares of Waystar in a research note on Thursday, August 27th. Canaccord Genuity Group boosted their price objective on Waystar from $30.00 to $33.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. Finally, Wells Fargo & Company decreased their price objective on shares of Waystar from $36.00 to $33.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $34.90.

About Waystar

Waystar Holding Corp. is a healthcare technology company that provides cloud-based software designed to simplify administrative and financial processes across the healthcare industry. Its platform connects healthcare providers, health plans and patients, helping organizations manage revenue cycle operations and improve the flow of information and payments.

The company's products and services include electronic claims management, eligibility and benefits verification, prior authorization, payment integrity, denial management, patient estimates and payments, billing automation, and healthcare analytics.

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