HealthStream (NASDAQ:HSTM) Share Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• HealthStream shares rose above their 200-day moving average, reaching $29.76 and last trading near $29.74, compared with the moving average of $25.61.
• Analyst sentiment remains mixed but generally cautious: the consensus rating is “Hold” with a $27.00 target price, although one rating was upgraded to “Buy.”
• The company exceeded quarterly expectations, reporting $0.23 in earnings per share versus a $0.17 estimate and revenue of $83.73 million versus $80.82 million; it also pays a small 0.5% dividend.

HealthStream, Inc. (NASDAQ:HSTM - Get Free Report) shares crossed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $25.61 and traded as high as $29.76. HealthStream shares last traded at $29.74, with a volume of 153,663 shares traded.

Wall Street Analyst Weigh In

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

HealthStream Price Performance

The stock has a 50-day simple moving average of $28.80 and a 200-day simple moving average of $25.61. The stock has a market cap of $869.00 million, a P/E ratio of 41.31, a PEG ratio of 3.37 and a beta of 0.44.

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

HealthStream Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Monday, August 17th were given a dividend of $0.0350 per share. This represents a $0.14 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Monday, August 17th. HealthStream's dividend payout ratio is currently 19.44%.

Insider Activity at HealthStream

In related news, Director Linda Rebrovick sold 6,000 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $29.00, for a total value of $174,000.00. Following the completion of the transaction, the director owned 51,329 shares of the company's stock, valued at $1,488,541. This represents a 10.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Frist, Jr. sold 144,068 shares of the firm's stock in a transaction that occurred 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 owned 3,907,038 shares in the company, valued at $115,257,621. This represents a 3.56% decrease in their position. The disclosure for this sale is available in the SEC filing. 20.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On HealthStream

Hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in HealthStream in the 2nd quarter worth about $111,184,000. Copeland Capital Management LLC boosted its stake in shares of HealthStream by 43.8% during the first quarter. Copeland Capital Management LLC now owns 1,276,739 shares of the technology company's stock valued at $26,441,000 after purchasing an additional 389,186 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of HealthStream during the second quarter valued at about $6,199,000. Man Group plc acquired a new stake in shares of HealthStream during the second quarter valued at about $3,894,000. Finally, Bank of America Corp DE bought a new stake in shares of HealthStream during the second quarter worth about $3,349,000. Institutional investors and hedge funds own 69.58% of the company's stock.

HealthStream Company Profile

HealthStream, Inc provides workforce and provider solutions designed for healthcare organizations. Its cloud-based offerings help hospitals, health systems and other healthcare providers manage employee training, education, credentialing, compliance and professional development.

The company's products and services include learning and talent-management tools, provider credentialing and enrollment solutions, performance assessment, clinical development resources, and patient-experience measurement services.

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