HealthStream (NASDAQ:HSTM) Reaches New 1-Year High - Should You Buy?

Key Points

• HealthStream shares reached a new 52-week high of $31.37, with the stock last trading near $31.45. Its market capitalization is approximately $917.8 million, while valuation metrics include a P/E ratio of 43.6.
• The company reported quarterly earnings of $0.23 per share, exceeding the $0.17 consensus estimate, while revenue of $83.73 million also topped expectations. HealthStream declared a quarterly dividend of $0.035, equivalent to a 0.4% annualized yield.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with a $27 price target, below the recent trading price. CEO Robert Frist Jr. also sold 144,068 shares for approximately $4.25 million, though insiders still own 20.4% of the company.

Shares of HealthStream, Inc. (NASDAQ:HSTM - Get Free Report) reached a new 52-week high during trading on Monday. The company traded as high as $31.37 and last traded at $31.4540, with a volume of 6598 shares trading hands. The stock had previously closed at $30.36.

Analyst Ratings Changes

HSTM has been the subject of several recent analyst reports. Weiss Ratings raised shares of HealthStream from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, August 28th. Canaccord Genuity Group raised their price target on shares of HealthStream from $24.00 to $27.00 and gave the company a "hold" rating in a report on Tuesday, July 21st. Finally, Wall Street Zen raised shares of HealthStream from a "hold" rating to a "buy" rating in a report on Sunday, August 30th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $27.00.

HealthStream Stock Performance

The stock has a market cap of $917.77 million, a P/E ratio of 43.60, a P/E/G ratio of 3.57 and a beta of 0.42. The stock has a 50-day moving average price of $29.01 and a 200-day moving average price of $25.82.

HealthStream (NASDAQ:HSTM - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The technology company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.06. The company had revenue of $83.73 million for the quarter, compared to analysts' expectations of $80.82 million. HealthStream had a net margin of 6.60% and a return on equity of 6.81%. Sell-side analysts forecast that HealthStream, Inc. will post 0.72 earnings per share for the current fiscal year.

HealthStream Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Monday, August 17th were issued a $0.0350 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 0.4%. HealthStream's dividend payout ratio is presently 19.44%.

Insider Buying and Selling at HealthStream

In other news, CEO Robert Frist, Jr. sold 144,068 shares of HealthStream stock in a transaction on Monday, September 14th. The shares were sold at an average price of $29.50, for a total transaction of $4,250,006.00. Following the completion of the sale, the chief executive officer directly owned 3,907,038 shares of the company's stock, valued at approximately $115,257,621. The trade was a 3.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 20.40% of the company's stock.

Institutional Investors Weigh In On HealthStream

Large investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC bought a new stake in HealthStream during the second quarter worth about $222,000. Tidal Investments LLC purchased a new position in shares of HealthStream in the 2nd quarter worth about $575,000. Integrated Wealth Concepts LLC bought a new position in shares of HealthStream during the 2nd quarter valued at about $27,000. Squarepoint Ops LLC bought a new position in shares of HealthStream during the 2nd quarter valued at about $222,000. Finally, Amundi raised its holdings in shares of HealthStream by 29.8% during the 2nd quarter. Amundi now owns 20,371 shares of the technology company's stock valued at $555,000 after buying an additional 4,680 shares in the last quarter. Hedge funds and other institutional investors own 69.58% of the company's stock.

About HealthStream

HealthStream, Inc provides workforce solutions for the healthcare industry. The company develops software and services designed to help healthcare organizations manage employee learning, performance, credentialing, and other workforce-related processes.

Its offerings include online learning and education management, workforce development tools, competency and performance management, and credentialing solutions. HealthStream also provides content and administrative services intended to support regulatory compliance, professional development, and operational efficiency for healthcare employers.

Based in Nashville, Tennessee, HealthStream primarily serves healthcare organizations in the United States, including hospitals, health systems, medical practices, and other healthcare providers.

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