DA Davidson Upgrades Phreesia (NYSE:PHR) to Strong-Buy

Key Points

• Phreesia has received a "strong-buy" rating upgrade from DA Davidson, indicating a positive outlook for the stock.
• The company reported a quarterly profit of $0.01 per share, exceeding analysts' expectations, alongside a 14.9% increase in revenue compared to the previous year.
• Phreesia's stock has seen significant interest from institutional investors, with 92.10% of its shares currently owned by this group.

Phreesia (NYSE:PHR - Get Free Report) was upgraded by equities research analysts at DA Davidson to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

Several other research firms have also recently weighed in on PHR. JMP Securities increased their price objective on shares of Phreesia from $30.00 to $34.00 and gave the stock a "market outperform" rating in a research report on Monday. Stephens reissued an "overweight" rating and set a $32.00 target price on shares of Phreesia in a research note on Wednesday, September 3rd. Truist Financial increased their target price on shares of Phreesia from $35.00 to $36.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Wall Street Zen raised shares of Phreesia from a "hold" rating to a "buy" rating in a research note on Sunday, June 1st. Finally, Mizuho initiated coverage on shares of Phreesia in a research note on Wednesday, August 27th. They set an "outperform" rating and a $36.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $34.08.

Phreesia Price Performance

NYSE:PHR traded down $1.28 on Monday, hitting $24.20. The company had a trading volume of 1,348,119 shares, compared to its average volume of 583,941. The stock has a market capitalization of $1.45 billion, a price-to-earnings ratio of -57.62 and a beta of 0.72. The company has a current ratio of 2.12, a quick ratio of 1.95 and a debt-to-equity ratio of 0.02. The firm has a 50 day moving average of $28.12 and a two-hundred day moving average of $26.48. Phreesia has a 52 week low of $17.07 and a 52 week high of $32.76.

Phreesia (NYSE:PHR - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.08. Phreesia had a negative net margin of 5.35% and a negative return on equity of 8.75%. The firm had revenue of $117.26 million during the quarter, compared to analysts' expectations of $116.39 million. During the same period in the prior year, the company posted ($0.03) EPS. The company's revenue was up 14.9% on a year-over-year basis. Phreesia has set its FY 2026 guidance at EPS. On average, research analysts anticipate that Phreesia will post -1.1 earnings per share for the current year.

Insider Activity at Phreesia

In related news, SVP David Linetsky sold 23,729 shares of the firm's stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $28.50, for a total transaction of $676,276.50. Following the transaction, the senior vice president directly owned 193,510 shares of the company's stock, valued at $5,515,035. This trade represents a 10.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Lisa Egbuonu-Davis sold 2,802 shares of Phreesia stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $27.67, for a total transaction of $77,531.34. Following the completion of the sale, the director directly owned 22,037 shares in the company, valued at approximately $609,763.79. This represents a 11.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 109,292 shares of company stock valued at $3,295,323 over the last three months. Insiders own 5.50% of the company's stock.

Institutional Trading of Phreesia

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Phreesia by 2.4% in the first quarter. Vanguard Group Inc. now owns 4,936,515 shares of the company's stock worth $126,177,000 after acquiring an additional 113,405 shares during the period. Greenhouse Funds LLLP increased its stake in shares of Phreesia by 12.5% in the second quarter. Greenhouse Funds LLLP now owns 3,325,262 shares of the company's stock worth $94,637,000 after purchasing an additional 368,352 shares in the last quarter. Champlain Investment Partners LLC increased its stake in shares of Phreesia by 20.0% in the first quarter. Champlain Investment Partners LLC now owns 2,946,489 shares of the company's stock worth $75,312,000 after purchasing an additional 490,340 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Phreesia by 108.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,644,988 shares of the company's stock worth $67,606,000 after purchasing an additional 1,377,904 shares in the last quarter. Finally, Franklin Resources Inc. increased its stake in shares of Phreesia by 0.6% in the second quarter. Franklin Resources Inc. now owns 1,524,251 shares of the company's stock worth $43,380,000 after purchasing an additional 9,057 shares in the last quarter. Institutional investors own 92.10% of the company's stock.

Phreesia Company Profile

Phreesia, Inc provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients.