Phreesia (NYSE:PHR) Shares Gap Down After Analyst Downgrade

Key Points

• JPMorgan downgraded Phreesia to underweight from neutral, setting a $13 price target; shares opened at $12.32 after previously closing at $13.13.
• Analyst views remain mixed: eight rate the stock a buy, nine a hold, and two a sell. MarketBeat’s consensus is Hold, with an average price target of $13.87.
• In its latest reported quarter, Phreesia’s revenue rose 10.4% year over year to $129.46 million, slightly above estimates, while EPS of $0.03 missed the $0.09 consensus.

Phreesia, Inc. (NYSE:PHR - Get Free Report) gapped down before the market opened on Wednesday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. The stock had previously closed at $13.13, but opened at $12.32. JPMorgan Chase & Co. now has a $13.00 price target on the stock. Phreesia shares last traded at $12.6350, with a volume of 105,100 shares traded.

Other equities research analysts also recently issued reports about the stock. Needham & Company LLC reaffirmed a "buy" rating and issued a $14.00 target price on shares of Phreesia in a research note on Monday, August 31st. Weiss Ratings raised shares of Phreesia from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, October 19th. Royal Bank Of Canada reissued an "outperform" rating and issued a $19.00 price target on shares of Phreesia in a report on Thursday, September 3rd. Raymond James Financial cut shares of Phreesia from an "outperform" rating to a "market perform" rating in a research report on Tuesday, September 8th. Finally, Canaccord Genuity Group restated a "buy" rating and set a $16.00 price objective on shares of Phreesia in a research report on Thursday, September 3rd. Eight analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $13.87.

Insider Transactions at Phreesia

In other Phreesia news, General Counsel Allison C. Hoffman sold 6,662 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $10.08, for a total transaction of $67,152.96. Following the transaction, the general counsel directly owned 266,574 shares in the company, valued at $2,687,065.92. This trade represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 5.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Phreesia

Institutional investors have recently made changes to their positions in the business. Focus Advisor Solutions LLC grew its holdings in shares of Phreesia by 20.4% during the 3rd quarter. Focus Advisor Solutions LLC now owns 19,810 shares of the company's stock valued at $205,000 after purchasing an additional 3,362 shares during the last quarter. Voya Investment Management LLC lifted its stake in Phreesia by 3.6% in the third quarter. Voya Investment Management LLC now owns 63,460 shares of the company's stock worth $656,000 after purchasing an additional 2,206 shares during the last quarter. Edgestream Partners L.P. bought a new stake in Phreesia in the third quarter worth $212,000. Diversified Trust Co boosted its position in Phreesia by 56.9% during the third quarter. Diversified Trust Co now owns 29,956 shares of the company's stock valued at $309,000 after buying an additional 10,868 shares during the period. Finally, Russell Investments Group Ltd. boosted its position in Phreesia by 3.2% during the third quarter. Russell Investments Group Ltd. now owns 326,167 shares of the company's stock valued at $3,329,000 after buying an additional 10,172 shares during the period. Hedge funds and other institutional investors own 92.10% of the company's stock.

Phreesia Trading Down 3.4%

The firm has a market capitalization of $787.31 million, a PE ratio of 74.62 and a beta of 0.75. The firm's 50-day simple moving average is $11.17 and its 200-day simple moving average is $10.87. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.33.

Phreesia (NYSE:PHR - Get Free Report) last released its earnings results on Wednesday, September 2nd. The company reported $0.03 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.06). Phreesia had a net margin of 2.06% and a return on equity of 5.22%. The company had revenue of $129.46 million during the quarter, compared to the consensus estimate of $129.06 million. During the same period last year, the firm posted $0.01 EPS. The company's revenue was up 10.4% on a year-over-year basis. Equities analysts expect that Phreesia, Inc. will post 0.33 earnings per share for the current year.

Phreesia Company Profile

Phreesia, Inc. provides software and services that help healthcare organizations manage interactions with patients. Its platform supports tasks such as patient registration and intake, appointment scheduling, payments, and communications before and after visits. Phreesia's tools include digital and mobile options for completing forms and sharing information, as well as services designed to help providers engage patients and streamline administrative workflows. The company serves healthcare providers and organizations primarily in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.