Phreesia (NYSE:PHR) Stock Rating Lowered by Barclays

Key Points

• Barclays downgraded Phreesia from strong-buy to hold, adding to a wave of mixed analyst sentiment around the stock. Other firms have also cut price targets, though the consensus rating remains Moderate Buy with a $20 average target.
• Phreesia’s latest quarter was mixed: revenue of $127.07 million slightly beat expectations, but EPS of $0.02 missed the $0.07 consensus estimate. The company also reported year-over-year revenue growth of 15.9%.
• The stock is under pressure from insider sales and new class-action lawsuit activity, which could add legal costs and weigh on investor sentiment. Despite that, institutional investors still own about 92.1% of the shares.

Phreesia (NYSE:PHR - Get Free Report) was downgraded by research analysts at Barclays from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Mizuho dropped their target price on shares of Phreesia from $22.00 to $19.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 24th. DA Davidson decreased their price objective on shares of Phreesia from $35.00 to $30.00 and set a "buy" rating for the company in a research note on Friday, January 23rd. Citizens Jmp reiterated a "market perform" rating on shares of Phreesia in a research note on Wednesday, April 1st. Citigroup reiterated a "neutral" rating and issued a $10.00 target price (down from $25.00) on shares of Phreesia in a research note on Tuesday, March 31st. Finally, BMO Capital Markets reduced their price objective on shares of Phreesia from $32.00 to $14.00 and set an "outperform" rating for the company in a research report on Tuesday, March 31st. Eleven analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Phreesia has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

Phreesia Trading Up 0.1%

NYSE:PHR opened at $8.78 on Thursday. The firm has a 50-day simple moving average of $9.94 and a 200-day simple moving average of $14.53. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.53 and a current ratio of 1.53. Phreesia has a one year low of $7.77 and a one year high of $32.76. The firm has a market cap of $533.29 million, a P/E ratio of 292.57 and a beta of 0.89.

Phreesia (NYSE:PHR - Get Free Report) last issued its quarterly earnings data on Monday, March 30th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.05). Phreesia had a return on equity of 3.23% and a net margin of 0.48%.The firm had revenue of $127.07 million during the quarter, compared to analysts' expectations of $126.75 million. During the same period in the previous year, the firm earned ($0.11) EPS. The firm's quarterly revenue was up 15.9% on a year-over-year basis. Equities analysts anticipate that Phreesia will post 0.28 EPS for the current fiscal year.

Insider Activity

In other news, insider David Linetsky sold 8,332 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $8.07, for a total transaction of $67,239.24. Following the completion of the sale, the insider owned 224,056 shares in the company, valued at $1,808,131.92. This trade represents a 3.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, CFO Balaji Gandhi sold 3,829 shares of the stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $11.26, for a total transaction of $43,114.54. Following the transaction, the chief financial officer directly owned 146,740 shares of the company's stock, valued at approximately $1,652,292.40. This trade represents a 2.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 50,493 shares of company stock worth $461,983 over the last quarter. 5.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Raymond James Financial Inc. boosted its stake in Phreesia by 2.7% during the second quarter. Raymond James Financial Inc. now owns 14,049 shares of the company's stock worth $400,000 after buying an additional 375 shares during the period. Alliancebernstein L.P. boosted its stake in Phreesia by 1.3% during the third quarter. Alliancebernstein L.P. now owns 62,712 shares of the company's stock worth $1,475,000 after buying an additional 812 shares during the period. Van ECK Associates Corp boosted its stake in Phreesia by 78.7% during the fourth quarter. Van ECK Associates Corp now owns 2,502 shares of the company's stock worth $42,000 after buying an additional 1,102 shares during the period. Arizona State Retirement System boosted its stake in Phreesia by 8.1% during the third quarter. Arizona State Retirement System now owns 17,608 shares of the company's stock worth $414,000 after buying an additional 1,313 shares during the period. Finally, Federated Hermes Inc. purchased a new position in Phreesia during the third quarter worth about $32,000. Hedge funds and other institutional investors own 92.10% of the company's stock.

Phreesia News Roundup

Here are the key news stories impacting Phreesia this week:

• Negative Sentiment: Multiple law firms, including Rosen Law Firm, Faruqi & Faruqi, Pomerantz, Bragar Eagel & Squire, Gross Law Firm, Robbins LLP, and Gainey McKenna & Egleston, announced or promoted class-action lawsuits against Phreesia, alleging potential securities fraud tied to the period from May 8, 2025 through March 30, 2026. Article Title
• Negative Sentiment: The lawsuits and related investor alerts may increase legal costs, management distraction, and uncertainty around prior disclosures, which can weigh on investor sentiment toward the stock. Article Title
• Neutral Sentiment: Phreesia’s latest quarterly results were mixed: revenue came in slightly above expectations, but EPS missed consensus, which may still be influencing how investors view the company’s fundamentals.
• Neutral Sentiment: Despite the recent news flow, analysts previously remained constructive overall, with several Buy/Outperform ratings and a median price target above the current share price, suggesting some longer-term optimism remains.

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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