Waystar (NASDAQ:WAY) Shares Up 5.8% - Here's Why

Key Points

• Waystar shares rose 5.8% to $26.71 in Friday’s midday trading, although volume was 83% below the stock’s average daily volume.
• Recent quarterly results exceeded expectations: EPS was $0.43 versus $0.40 estimated, revenue reached $319.67 million, and sales increased 18.1% year over year.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $35.39; however, CEO Matthew Hawkins sold 60,038 shares under a pre-arranged trading plan.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report)'s stock price was up 5.8% during mid-day trading on Friday . The company traded as high as $26.75 and last traded at $26.71. 440,616 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 2,664,124 shares. The stock had previously closed at $25.25.

Wall Street Analyst Weigh In

Several research firms have commented on WAY. Barclays lifted their price target on Waystar from $25.00 to $27.00 and gave the company an "overweight" rating in a report on Friday, August 7th. KeyCorp reissued an "overweight" rating on shares of Waystar in a research report on Friday, July 31st. Raymond James Financial restated a "strong-buy" rating and issued a $32.00 target price on shares of Waystar in a report on Thursday, April 30th. Needham & Company LLC reaffirmed a "buy" rating and set a $33.00 price target on shares of Waystar in a research report on Wednesday. Finally, Wells Fargo & Company cut their price target on shares of Waystar from $36.00 to $33.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Three research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $35.39.

Waystar Price Performance

The stock has a market cap of $5.01 billion, a PE ratio of 37.34, a price-to-earnings-growth ratio of 0.94 and a beta of 0.06. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.36. The company's fifty day moving average is $22.71 and its 200 day moving average is $22.66.

Waystar (NASDAQ:WAY - Get Free Report) last released its quarterly earnings data 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. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The company had revenue of $319.67 million during the quarter, compared to analyst estimates of $316.21 million. During the same quarter in the prior year, the business earned $0.36 earnings per share. The business's quarterly revenue was up 18.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Waystar Holding Corp. will post 1.47 earnings per share for the current fiscal year.

Insider Transactions at Waystar

In other Waystar news, CEO Matthew J. Hawkins sold 60,038 shares of the firm's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $25.01, for a total value of $1,501,550.38. Following the transaction, the chief executive officer directly owned 1,835,081 shares of the company's stock, valued at $45,895,375.81. This trade represents a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On Waystar

Institutional investors and hedge funds have recently modified their holdings of the stock. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Waystar during the 2nd quarter valued at about $292,000. California State Teachers Retirement System boosted its holdings in Waystar by 1,898.9% in the 2nd quarter. California State Teachers Retirement System now owns 2,813,062 shares of the company's stock worth $57,752,000 after acquiring an additional 2,672,333 shares during the period. Wedmont Private Capital acquired a new stake in Waystar in the second quarter valued at approximately $1,292,000. Wellington Management Group LLP grew its position in Waystar by 23.1% in the second quarter. Wellington Management Group LLP now owns 793,481 shares of the company's stock valued at $16,290,000 after acquiring an additional 148,846 shares in the last quarter. Finally, Empowered Funds LLC acquired a new stake in Waystar in the second quarter valued at approximately $259,000.

About Waystar

Waystar NASDAQ: WAY is a leading provider of cloud-based revenue cycle management and payment solutions for healthcare organizations. The company's unified platform streamlines the entire financial continuum of patient care, from eligibility verification and claim submission to payment reconciliation and patient billing. By automating key processes and improving claim accuracy, Waystar helps providers reduce administrative overhead, accelerate cash flow and enhance overall revenue performance.

At the core of Waystar's offering is a SaaS-based architecture that integrates seamlessly with existing electronic health record (EHR) systems and payer networks.

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