HealthStream (NASDAQ:HSTM) Stock Price Down 6.6% - Should You Sell?

Key Points

• HealthStream shares fell 6.6% to about $32.29 in midday trading, despite volume running below its average.
• The company reported strong third-quarter results, with revenue of $83.3 million and EPS of $0.18, both ahead of analyst expectations; full-year revenue guidance also exceeded consensus.
• Analyst sentiment remains cautious, with an overall “Hold” rating and an average price target of $27, while recent insider share sales add another consideration for investors.

HealthStream, Inc. (NASDAQ:HSTM - Get Free Report)'s share price was down 6.6% during mid-day trading on Tuesday. The stock traded as low as $33.56 and last traded at $32.2860. 159,033 shares changed hands during trading, a decline of 36% from the average daily volume of 250,321 shares. The stock had previously closed at $34.58.

HealthStream News Summary

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: HealthStream reported third-quarter revenue of $83.3 million, up 8.9% year over year and above the $82.2 million-$82.3 million analyst estimates. HealthStream Announces Third Quarter 2026 Results
• Positive Sentiment: Third-quarter EPS was $0.18, beating consensus estimates ranging from $0.15 to $0.16 by $0.02-$0.03. HealthStream Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management issued fiscal 2026 revenue guidance of $331.0 million to $333.0 million, above the $329.5 million consensus forecast, signaling continued confidence in demand and execution.
• Positive Sentiment: HealthStream also declared a dividend, providing an additional shareholder-return benefit. HealthStream Reports Third-Quarter Results and Declares Dividend

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on HSTM shares. Citigroup reaffirmed a "market perform" rating on shares of HealthStream in a research note on Tuesday, October 27th. Freedom Capital raised HealthStream to a "hold" rating in a research note on Tuesday, October 13th. Canaccord Genuity Group upped their target price 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 HealthStream from a "hold" rating to a "buy" rating in a report on Saturday. Finally, Weiss Ratings upgraded shares of HealthStream from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $27.00.

HealthStream Trading Down 5.1%

The stock has a market cap of $958.60 million, a P/E ratio of 45.58, a P/E/G ratio of 3.90 and a beta of 0.45. The company has a 50-day moving average price of $31.05 and a two-hundred day moving average price of $25.65.

HealthStream (NASDAQ:HSTM - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The technology company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.16 by $0.02. The firm had revenue of $83.31 million during the quarter, compared to the consensus estimate of $82.24 million. HealthStream had a net margin of 6.60% and a return on equity of 6.81%. As a group, equities analysts forecast that HealthStream, Inc. will post 0.72 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Robert A. Frist, Jr. sold 144,068 shares of the firm's stock in a transaction 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 transaction, the chief executive officer directly owned 3,907,038 shares in the company, valued at $115,257,621. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Linda Rebrovick sold 12,000 shares of HealthStream stock in a transaction on Friday, October 23rd. The stock was sold at an average price of $35.00, for a total transaction of $420,000.00. Following the completion of the transaction, the director directly owned 39,329 shares of the company's stock, valued at approximately $1,376,515. This represents a 23.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On HealthStream

A number of institutional investors have recently modified their holdings of the business. Bridge City Capital LLC raised its position in shares of HealthStream by 17.6% during the 3rd quarter. Bridge City Capital LLC now owns 60,860 shares of the technology company's stock worth $1,808,000 after purchasing an additional 9,095 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of HealthStream in the 3rd quarter worth approximately $160,000. Vise Technologies Inc. boosted its position in HealthStream by 35.4% during the 3rd quarter. Vise Technologies Inc. now owns 14,043 shares of the technology company's stock valued at $417,000 after purchasing an additional 3,671 shares during the period. Summit Global Investments grew its stake in HealthStream by 7.5% during the 3rd quarter. Summit Global Investments now owns 14,696 shares of the technology company's stock worth $437,000 after buying an additional 1,022 shares during the last quarter. Finally, Signaturefd LLC lifted its stake in HealthStream by 107.9% in the third quarter. Signaturefd LLC now owns 3,194 shares of the technology company's stock valued at $95,000 after buying an additional 1,658 shares during the last quarter. Institutional investors own 69.58% of the company's stock.

About HealthStream

HealthStream, Inc provides workforce and provider solutions designed for healthcare organizations. Its software and services help hospitals, health systems, medical practices and other healthcare providers manage employee education, training, credentialing, compliance and professional development.

The company's offerings include learning management and education tools, competency and performance-management solutions, and systems for managing provider credentials, privileging and enrollment.

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