Waystar (NASDAQ:WAY) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Waystar beat quarterly expectations, reporting adjusted earnings of $0.43 per share versus the $0.40 analyst consensus. Revenue reached $319.67 million, slightly above estimates of $316.22 million.
• Shares rose $0.83 to $24.52 in mid-day trading, though the stock remains well below its one-year high of $41.47. Waystar has a market capitalization of approximately $4.70 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $35.23 price target, despite several recent target-price reductions and one downgrade to “sell.”

Waystar (NASDAQ:WAY - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.03, FiscalAI reports. The firm had revenue of $319.67 million for the quarter, compared to analyst estimates of $316.22 million. Waystar had a net margin of 10.90% and a return on equity of 6.99%.

Waystar Price Performance

Waystar stock traded up $0.83 during mid-day trading on Wednesday, reaching $24.52. The company had a trading volume of 3,575,703 shares, compared to its average volume of 2,624,156. The stock's 50-day simple moving average is $20.62 and its 200-day simple moving average is $23.37. The company has a market capitalization of $4.70 billion, a P/E ratio of 36.60, a P/E/G ratio of 0.91 and a beta of 0.08. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.76 and a quick ratio of 1.76. Waystar has a 1 year low of $17.26 and a 1 year high of $41.47.

Institutional Trading of Waystar

Institutional investors have recently bought and sold shares of the company. Advent International L.P. purchased a new position in shares of Waystar in the fourth quarter valued at $362,212,000. Alliancebernstein L.P. raised its position in shares of Waystar by 3,883.4% during the 2nd quarter. Alliancebernstein L.P. now owns 3,268,932 shares of the company's stock worth $133,601,000 after purchasing an additional 3,186,869 shares during the last quarter. Alyeska Investment Group L.P. lifted its stake in Waystar by 4,717.4% in the 3rd quarter. Alyeska Investment Group L.P. now owns 1,814,648 shares of the company's stock valued at $68,811,000 after buying an additional 1,776,979 shares in the last quarter. Bamco Inc. NY purchased a new stake in Waystar in the 4th quarter valued at approximately $45,642,000. Finally, Invesco Ltd. grew its holdings in Waystar by 63.0% during the 3rd quarter. Invesco Ltd. now owns 3,130,230 shares of the company's stock valued at $118,698,000 after buying an additional 1,209,276 shares during the last quarter.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on WAY. Bank of America lowered their target price on shares of Waystar from $45.00 to $38.00 and set a "buy" rating on the stock in a report on Friday, April 10th. Barclays reduced their price objective on shares of Waystar from $36.00 to $25.00 and set an "overweight" rating for the company in a research report on Wednesday, May 20th. Weiss Ratings lowered Waystar from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, June 24th. UBS Group set a $34.00 target price on Waystar in a research note on Monday, July 20th. Finally, KeyCorp began coverage on Waystar in a report on Wednesday, July 1st. They issued an "overweight" rating and a $30.00 price target for the company. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $35.23.

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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