HealthStream (NASDAQ:HSTM) Sets New 52-Week High - Still a Buy?

Key Points

• HealthStream shares reached a new 52-week high of $33.21, giving the company a market capitalization of approximately $977 million.
• The company exceeded quarterly expectations, reporting earnings of $0.23 per share versus the $0.17 consensus estimate and revenue of $83.73 million versus $80.82 million expected.
• Despite recent analyst upgrades, Wall Street’s overall rating remains “Hold”, with a consensus price target of $27—below the current share price. CEO Robert Frist Jr. also sold 144,068 shares, while institutional investors own 69.58% of the stock.

HealthStream, Inc. (NASDAQ:HSTM - Get Free Report)'s stock price hit a new 52-week high on Monday. The company traded as high as $33.21 and last traded at $33.1880, with a volume of 217,975 shares. The stock had previously closed at $33.13.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on HSTM shares. Wall Street Zen upgraded HealthStream from a "hold" rating to a "buy" rating in a report on Sunday, August 30th. Weiss Ratings raised HealthStream from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday. Finally, Canaccord Genuity Group raised their price target on shares of HealthStream from $24.00 to $27.00 and gave the stock a "hold" rating in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $27.00.

HealthStream Stock Performance

The firm has a market cap of $977.41 million, a price-to-earnings ratio of 46.46, a P/E/G ratio of 3.83 and a beta of 0.42. The company's 50-day moving average is $29.37 and its 200-day moving average is $26.22.

HealthStream (NASDAQ:HSTM - Get Free Report) last released its earnings results on Monday, August 3rd. The technology company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.17 by $0.06. HealthStream had a return on equity of 6.81% and a net margin of 6.60%. The company had revenue of $83.73 million during the quarter, compared to the consensus estimate of $80.82 million. On average, analysts predict that HealthStream, Inc. will post 0.72 EPS for the current year.

HealthStream Dividend Announcement

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

Insider Buying and Selling

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

Institutional Investors Weigh In On HealthStream

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in HealthStream in the 2nd quarter valued at $111,184,000. Dimensional Fund Advisors LP raised its position in shares of HealthStream by 6.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,456,043 shares of the technology company's stock worth $30,156,000 after acquiring an additional 87,177 shares during the last quarter. Copeland Capital Management LLC raised its position in shares of HealthStream by 43.8% in the 1st quarter. Copeland Capital Management LLC now owns 1,276,739 shares of the technology company's stock worth $26,441,000 after acquiring an additional 389,186 shares in the last quarter. Renaissance Technologies LLC raised its holdings in shares of HealthStream by 0.5% during the first quarter. Renaissance Technologies LLC now owns 477,848 shares of the technology company's stock valued at $9,896,000 after purchasing an additional 2,380 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in HealthStream by 21.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 377,945 shares of the technology company's stock valued at $7,827,000 after purchasing an additional 65,806 shares in the last quarter. 69.58% of the stock is owned by institutional investors.

HealthStream Company Profile

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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