Waystar (NASDAQ:WAY) Shares Gap Down - What's Next?

Key Points

• Waystar shares fell sharply: The stock opened at $25.43 versus a previous close of $28.14, though it later recovered to about $26.75.
• Third-quarter results exceeded expectations: Revenue rose 21% year over year to $325.6 million, while non-GAAP EPS of $0.44 beat the $0.41 consensus estimate.
• Guidance offered limited upside: Fiscal 2026 revenue projections were broadly in line with—or slightly below—consensus, potentially prompting profit-taking despite the earnings beat. Analysts remain generally bullish, with a “Moderate Buy” consensus and an average price target of $34.95.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report)'s stock price gapped down before the market opened on Tuesday. The stock had previously closed at $28.14, but opened at $25.43. Waystar shares last traded at $26.7460, with a volume of 411,770 shares.

Trending Headlines about Waystar

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Waystar reported third-quarter revenue of $325.6 million, up 21% from a year earlier, while non-GAAP EPS of $0.44 exceeded the $0.41 consensus estimate. Adjusted EBITDA margin was 43%, and net income reached $31.0 million. Waystar Reports Third Quarter 2026 Results
• Positive Sentiment: Canaccord Genuity raised its price target from $33 to $34 and assigned a Buy rating, indicating analyst confidence in Waystar’s longer-term growth prospects. Canaccord Genuity Group recommendations
• Neutral Sentiment: Management provided fiscal 2026 EPS guidance of $1.63-$1.71, with the low end matching consensus, and revenue guidance of approximately $1.3 billion, also broadly in line with expectations.
• Positive Sentiment: Separate coverage indicated that Waystar raised its adjusted EBITDA outlook to approximately $543 million-$549 million, suggesting continued operating leverage despite the more measured revenue outlook. Waystar forecasts revenue and adjusted EBITDA outlook
• Negative Sentiment: The full-year forecast did not clearly exceed Wall Street expectations; reported revenue guidance of $1.277 billion-$1.287 billion in some coverage was below the approximately $1.3 billion consensus figure. That limited guidance upside may have prompted profit-taking even after the quarterly beat. Waystar third-quarter earnings results

Wall Street Analyst Weigh In

A number of analysts recently weighed in on WAY shares. KeyCorp upped their target price on shares of Waystar from $30.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, October 16th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $39.00 target price on shares of Waystar in a research note on Friday, July 31st. Weiss Ratings raised Waystar from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 2nd. BMO Capital Markets restated an "outperform" rating on shares of Waystar in a research note on Thursday, August 27th. Finally, Wells Fargo & Company dropped their price objective on Waystar from $36.00 to $33.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Waystar has a consensus rating of "Moderate Buy" and a consensus price target of $34.95.

Waystar Stock Performance

The company has a market cap of $5.27 billion, a PE ratio of 39.09, a PEG ratio of 1.13 and a beta of 0.18. The stock has a 50 day simple moving average of $26.23 and a two-hundred day simple moving average of $23.97. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.85 and a quick ratio of 1.85.

Waystar (NASDAQ:WAY - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.03. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The company had revenue of $325.62 million for the quarter, compared to analyst estimates of $323.43 million. During the same period in the previous year, the business posted $0.37 earnings per share. Waystar's quarterly revenue was up 21.2% on a year-over-year basis. Equities analysts predict that Waystar Holding Corp. will post 1.47 EPS for the current year.

Insider Activity

In other news, CEO Matthew Hawkins sold 82,500 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $26.23, for a total transaction of $2,163,975.00. Following the completion of the sale, the chief executive officer owned 1,804,794 shares in the company, valued at $47,339,746.62. This represents a 4.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 247,500 shares of company stock valued at $6,370,499 over the last quarter. Insiders own 3.50% of the company's stock.

Hedge Funds Weigh In On Waystar

Several institutional investors have recently bought and sold shares of WAY. Canada Pension Plan Investment Board bought a new stake in shares of Waystar in the 2nd quarter worth approximately $390,593,000. BlackRock Inc. bought a new position in Waystar during the 2nd quarter worth $357,950,000. Advent International L.P. bought a new position in Waystar during the 2nd quarter worth $227,060,000. Jupiter Topco LLC bought a new position in Waystar during the 2nd quarter worth $58,960,000. Finally, Bank of America Corp DE acquired a new stake in Waystar in the second quarter worth $53,031,000.

About Waystar

Waystar Holding Corp. is a healthcare technology company that provides cloud-based software designed to simplify administrative and financial processes across the healthcare industry. Its platform connects healthcare providers, health plans and patients, helping organizations manage revenue cycle operations and improve the flow of information and payments.

The company's products and services include electronic claims management, eligibility and benefits verification, prior authorization, payment integrity, denial management, patient estimates and payments, billing automation, and healthcare analytics.

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