Phreesia (NYSE:PHR) Shares Gap Down - Here's Why

Key Points

• Phreesia shares opened lower after the stock gapped down from $9.17 to $8.84, falling about 3.5% as investors reacted to fresh headlines.
• Class action lawsuit concerns are weighing on sentiment, with multiple law firms promoting securities litigation tied to alleged misstatements about growth durability and the AccessOne acquisition.
• Analysts have turned more cautious, cutting price targets at several firms; Wells Fargo lowered its target to $9 and the current consensus rating is now Hold with a $19.06 target.

Phreesia, Inc. (NYSE:PHR - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $9.17, but opened at $8.84. Phreesia shares last traded at $8.7870, with a volume of 367,992 shares trading hands.

Key Headlines Impacting Phreesia

Here are the key news stories impacting Phreesia this week:

• Negative Sentiment: Multiple law firms are publicizing a class action lawsuit against Phreesia, increasing legal uncertainty and potentially pressuring sentiment. Article Title
• Negative Sentiment: The allegations focus on possible misstatements about growth durability and the AccessOne acquisition, which could raise concerns about management credibility. Article Title
• Neutral Sentiment: Several firms are reminding investors of upcoming lead-plaintiff deadlines, but these notices mainly reinforce the already-known litigation overhang. Article Title

Analysts Set New Price Targets

Several brokerages have recently issued reports on PHR. Wells Fargo & Company reissued an "equal weight" rating and set a $9.00 price target (down from $15.00) on shares of Phreesia in a report on Wednesday. JPMorgan Chase & Co. reissued a "neutral" rating and set a $16.00 price target (down from $24.00) on shares of Phreesia in a report on Tuesday, March 31st. DA Davidson reduced their price target on shares of Phreesia from $35.00 to $30.00 and set a "buy" rating for the company in a report on Friday, January 23rd. Stephens reduced their price target on shares of Phreesia from $32.00 to $20.00 and set an "overweight" rating for the company in a report on Tuesday, March 31st. Finally, Robert W. Baird reissued a "neutral" rating and set a $10.00 price target (down from $25.00) on shares of Phreesia in a report on Tuesday, March 31st. Ten research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $19.06.

Phreesia Trading Down 3.5%

The business's 50 day moving average is $9.82 and its two-hundred day moving average is $14.27. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $546.39 million, a P/E ratio of 294.50 and a beta of 0.89.

Phreesia (NYSE:PHR - Get Free Report) last issued its quarterly earnings results on Monday, March 30th. The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.05). Phreesia had a net margin of 0.48% and a return on equity of 3.23%. The firm had revenue of $127.07 million for the quarter, compared to analyst estimates of $126.75 million. During the same quarter last year, the business posted ($0.11) earnings per share. The firm's revenue for the quarter was up 15.9% compared to the same quarter last year. Analysts expect that Phreesia, Inc. will post 0.28 EPS for the current year.

Insider Buying and Selling at Phreesia

In other Phreesia news, General Counsel Allison C. Hoffman sold 6,176 shares of the company's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $9.06, for a total value of $55,954.56. Following the completion of the sale, the general counsel directly owned 157,309 shares of the company's stock, valued at approximately $1,425,219.54. This represents a 3.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yvonne Hui sold 10,063 shares of the company'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 completion of the sale, the insider directly owned 25,991 shares of the company's stock, valued at $235,998.28. The trade was 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. Insiders sold a total of 50,493 shares of company stock valued at $461,983 over the last 90 days. Insiders own 5.50% of the company's stock.

Institutional Trading of Phreesia

Institutional investors and hedge funds have recently bought and sold shares of the stock. Pale Fire Capital SE purchased a new stake in Phreesia during the first quarter valued at about $72,481,000. Vanguard Group Inc. lifted its stake in Phreesia by 0.7% during the fourth quarter. Vanguard Group Inc. now owns 5,744,326 shares of the company's stock valued at $97,194,000 after buying an additional 39,540 shares in the last quarter. Greenhouse Funds LLLP lifted its stake in Phreesia by 16.8% during the third quarter. Greenhouse Funds LLLP now owns 3,882,527 shares of the company's stock valued at $91,317,000 after buying an additional 557,265 shares in the last quarter. Granahan Investment Management LLC lifted its stake in Phreesia by 73.8% during the fourth quarter. Granahan Investment Management LLC now owns 2,399,613 shares of the company's stock valued at $40,601,000 after buying an additional 1,018,987 shares in the last quarter. Finally, Franklin Resources Inc. lifted its stake in Phreesia by 28.8% during the fourth quarter. Franklin Resources Inc. now owns 2,000,082 shares of the company's stock valued at $33,841,000 after buying an additional 446,890 shares in the last quarter. Institutional investors and hedge funds own 92.10% of the company's stock.

About Phreesia

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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