Phreesia (NYSE:PHR) Downgraded to Neutral Rating by Piper Sandler

Key Points

• Piper Sandler downgraded Phreesia from overweight to neutral and kept a $12 price target, implying modest upside from the prior close.
• Phreesia’s latest quarterly results beat expectations, with EPS of $0.05 versus $0.02 estimated and revenue of $130.94 million, up 12.9% year over year.
• The stock has drawn mixed sentiment from analysts and faces added uncertainty from a shareholder class-action lawsuit tied to alleged misleading statements about growth outlook and the Network Solutions segment.

Phreesia (NYSE:PHR - Get Free Report) was downgraded by Piper Sandler from an "overweight" rating to a "neutral" rating in a report issued on Thursday. They presently have a $12.00 price target on the stock. Piper Sandler's target price would suggest a potential upside of 24.56% from the company's previous close.

A number of other analysts have also recently weighed in on the stock. Mizuho decreased their price target on shares of Phreesia from $22.00 to $19.00 and set an "outperform" rating for the company in a research note on Tuesday, March 24th. Barclays restated an "equal weight" rating and set a $10.00 price objective (down from $24.00) on shares of Phreesia in a research report on Thursday, May 14th. KeyCorp cut their price objective on shares of Phreesia from $15.00 to $12.00 and set an "overweight" rating for the company in a research report on Monday, April 13th. Wall Street Zen downgraded shares of Phreesia from a "buy" rating to a "hold" rating in a research report on Saturday, April 4th. Finally, Needham & Company LLC cut their price objective on shares of Phreesia from $35.00 to $14.00 and set a "buy" rating for the company in a research report on Tuesday, March 31st. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $16.53.

Phreesia Stock Up 5.5%

Shares of NYSE:PHR traded up $0.50 during trading hours on Thursday, reaching $9.63. The stock had a trading volume of 3,759,465 shares, compared to its average volume of 1,825,877. Phreesia has a 1 year low of $7.77 and a 1 year high of $32.76. The firm's 50 day moving average is $9.53 and its 200-day moving average is $13.69. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.53 and a current ratio of 1.53. The stock has a market capitalization of $595.09 million, a price-to-earnings ratio of 326.30 and a beta of 0.89.

Phreesia (NYSE:PHR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The company reported $0.05 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. Phreesia had a net margin of 0.48% and a return on equity of 3.23%. The company had revenue of $130.94 million for the quarter, compared to the consensus estimate of $130.08 million. During the same period in the prior year, the firm posted ($0.07) EPS. The company's quarterly revenue was up 12.9% compared to the same quarter last year. Research analysts predict that Phreesia will post 0.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Phreesia

In other Phreesia news, CFO Balaji Gandhi sold 3,829 shares of the firm's stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $11.26, for a total transaction of $43,114.54. Following the completion of the transaction, the chief financial officer directly owned 146,740 shares in the company, valued at approximately $1,652,292.40. This trade represents a 2.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Yvonne Hui sold 10,063 shares of the firm's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $9.08, for a total transaction of $91,372.04. Following the transaction, the insider owned 25,991 shares of the company's stock, valued at $235,998.28. This trade represents a 27.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 50,493 shares of company stock valued at $461,983. Insiders own 5.20% of the company's stock.

Hedge Funds Weigh In On Phreesia

Several hedge funds have recently added to or reduced their stakes in the business. Raymond James Financial Inc. raised its stake in Phreesia by 2.7% in the 2nd quarter. Raymond James Financial Inc. now owns 14,049 shares of the company's stock valued at $400,000 after purchasing an additional 375 shares during the last quarter. Alliancebernstein L.P. boosted its stake in shares of Phreesia by 1.3% during the 3rd quarter. Alliancebernstein L.P. now owns 62,712 shares of the company's stock worth $1,475,000 after purchasing an additional 812 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Phreesia by 78.7% during the 4th quarter. Van ECK Associates Corp now owns 2,502 shares of the company's stock worth $42,000 after purchasing an additional 1,102 shares during the last quarter. Arizona State Retirement System boosted its stake in shares of Phreesia by 8.1% during the 3rd quarter. Arizona State Retirement System now owns 17,608 shares of the company's stock worth $414,000 after purchasing an additional 1,313 shares during the last quarter. Finally, Federated Hermes Inc. acquired a new stake in shares of Phreesia during the 3rd quarter worth about $32,000. 92.10% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Phreesia

Here are the key news stories impacting Phreesia this week:

• Positive Sentiment: Phreesia reported fiscal Q1 2027 earnings of $0.05 per share, beating estimates of $0.02, while revenue of $130.94 million also edged past expectations and grew 12.9% year over year. Phreesia Announces First Quarter Fiscal 2027 Results
• Positive Sentiment: DA Davidson reaffirmed its Buy rating on Phreesia and set a $14 price target, implying meaningful upside from recent trading levels. DA Davidson Reiterates Buy Rating on Phreesia Inc. (PHR)
• Neutral Sentiment: Management also outlined fiscal 2027 revenue guidance of $510 million to $520 million while keeping adjusted EBITDA guidance at $125 million to $135 million, which suggests continued growth but no major surprise versus the earnings update. Phreesia, Inc. Q1 2027 Earnings Call Summary
• Negative Sentiment: Multiple law firms issued reminders about an ongoing shareholder class-action lawsuit alleging Phreesia made misleading statements about its growth outlook and Network Solutions segment, with a lead-plaintiff deadline of July 13, 2026. Deadline Approaching: Phreesia Inc. (PHR) Shareholders Who Lost Money Urged To Contact Law Offices of Howard G. Smith
• Negative Sentiment: The class-action filings and investor alerts may pressure sentiment by reinforcing legal risk and uncertainty around prior disclosures. Lost Money on Phreesia, Inc. (PHR)? Join Class Action Suit Seeking Recovery - Contact SueWallSt

Phreesia Company Profile

Phreesia, Inc NYSE: PHR is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company's cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.

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