Waystar (NASDAQ:WAY) Shares Gap Up - Still a Buy?

Key Points

• Waystar shares jumped 8.2%, opening at $27.03 after closing at $24.90, with the latest trade at $26.81.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $35.14, despite UBS lowering its target to $33.
• Waystar beat quarterly expectations, reporting $0.43 in EPS versus $0.40 expected and $319.67 million in revenue, up 18.1% year over year. However, insiders sold 165,000 shares worth about $4.2 million during the last quarter.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $24.90, but opened at $27.03. Waystar shares last traded at $26.81, with a volume of 971,585 shares.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on WAY. Citigroup reaffirmed a "buy" rating on shares of Waystar in a research note on Monday, July 20th. KeyCorp restated an "overweight" rating on shares of Waystar in a research note on Friday, July 31st. Wolfe Research upgraded shares of Waystar to an "outperform" rating in a research report on Thursday, August 13th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $39.00 target price on shares of Waystar in a research report on Friday, July 31st. Finally, UBS Group cut their price objective on shares of Waystar from $37.00 to $33.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Waystar has a consensus rating of "Moderate Buy" and an average price target of $35.14.

Waystar Trading Up 8.2%

The stock has a market capitalization of $5.17 billion, a P/E ratio of 38.26, a PEG ratio of 0.91 and a beta of 0.16. The stock's fifty day moving average price is $23.81 and its 200 day moving average price is $22.75. 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 issued its earnings results on Wednesday, July 29th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.03. The company had revenue of $319.67 million for the quarter, compared to analysts' expectations of $316.21 million. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The firm's quarterly revenue was up 18.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.36 EPS. Research analysts forecast that Waystar Holding Corp. will post 1.47 earnings per share for the current year.

Insider Buying and Selling at Waystar

In other news, CEO Matthew Hawkins sold 82,500 shares of the company's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $25.97, for a total value of $2,142,525.00. Following the sale, the chief executive officer directly owned 1,804,794 shares of the company's stock, valued at $46,870,500.18. This represents a 4.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 165,000 shares of company stock valued at $4,206,524 over the last quarter. 3.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Waystar

A number of large investors have recently bought and sold shares of WAY. Tidal Investments LLC raised its position in shares of Waystar by 127.1% in the second quarter. Tidal Investments LLC now owns 29,070 shares of the company's stock valued at $597,000 after buying an additional 16,270 shares during the last quarter. WINTON GROUP Ltd acquired a new position in Waystar during the 2nd quarter worth about $3,488,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Waystar in the second quarter valued at approximately $292,000. California State Teachers Retirement System lifted its holdings in Waystar by 1,898.9% during the 2nd quarter. California State Teachers Retirement System now owns 2,813,062 shares of the company's stock worth $57,752,000 after buying an additional 2,672,333 shares in the last quarter. Finally, Wedmont Private Capital purchased a new position in Waystar in the second quarter valued at $1,292,000.

Waystar Company Profile

Waystar Holding Corp. is a healthcare payments technology company that provides cloud-based software for managing administrative and financial processes across the healthcare system. Its platform connects healthcare providers, health plans and patients, helping organizations simplify complex transactions and improve the efficiency of the revenue cycle.

The company's products and services include patient eligibility and coverage verification, claims management and submission, payment processing, prior authorization, denial and appeal management, patient billing, and related workflow automation.

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