Waystar (NASDAQ:WAY) Sets New 1-Year Low on Analyst Downgrade

Key Points

• Waystar hit a new 52-week low after JPMorgan trimmed its price target from $40 to $38 while keeping an overweight rating; shares traded as low as $20.35 and last at $21.38 on ~8.04M volume, down roughly 15% from the prior close.
• Analysts remain broadly positive—three Strong Buy, 17 Buy, 2 Hold and 1 Sell—with a consensus price target of $36.38, implying significant upside versus current levels.
• Fundamentals are mixed: Q1 beat estimates (EPS $0.42 vs. $0.39; revenue $313.9M, +22% YoY) and FY‑26 guidance was roughly in line with the Street, but management warned of flat-to‑slightly down Q2 sequential growth, likely contributing to the selloff.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report)'s stock price hit a new 52-week low on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $40.00 to $38.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Waystar traded as low as $20.35 and last traded at $21.38, with a volume of 8044196 shares traded. The stock had previously closed at $25.27.

WAY has been the subject of several other reports. Evercore set a $27.00 target price on Waystar in a research report on Wednesday, February 18th. BMO Capital Markets decreased their target price on Waystar from $47.00 to $30.00 and set an "outperform" rating for the company in a research report on Wednesday, February 18th. UBS Group decreased their target price on Waystar from $41.00 to $37.00 and set a "buy" rating for the company in a research report on Thursday. Wells Fargo & Company decreased their target price on Waystar from $41.00 to $36.00 and set an "overweight" rating for the company in a research report on Thursday, February 19th. Finally, Canaccord Genuity Group decreased their target price on Waystar from $54.00 to $30.00 and set a "buy" rating for the company in a research report on Wednesday, February 18th. Three analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $36.38.

Key Waystar News

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q1 results beat estimates: Waystar reported $0.42 EPS on $313.9M revenue, with revenue up ~22% YoY and healthy margins — the fundamental beat and strong topline growth support the stock’s valuation. Waystar Reports First Quarter 2026 Results
• Positive Sentiment: Analyst support: Needham reiterated a "buy" rating with a $33 price target, which signals continued analyst conviction that Waystar has meaningful upside from current levels. Needham Reaffirms Buy
• Positive Sentiment: Product/strategy upside: Coverage highlights Waystar’s new AltitudeAI tools as potentially strengthening its data moat and margins — a positive read for medium‑term revenue and profitability expansion if adoption accelerates. Could Waystar’s New AltitudeAI Tools Redefine Its Data Moat
• Neutral Sentiment: FY‑2026 guidance roughly in line with Street: Management set FY26 EPS at $1.590–1.680 and revenue guidance around $1.3B — close to consensus, which moderates both upside surprises and downside risk. Waystar Press Release / Guidance
• Neutral Sentiment: Earnings call & transcripts available: Management commentary (transcripts) will be important for color on margin drivers, product rollouts and customer trends — read the call for items that could swing sentiment. Q1 2026 Earnings Call Transcript
• Neutral Sentiment: JPMorgan trimmed its price target from $40 to $38 but kept an "overweight" rating — the cut narrows some upside expectations but the firm still projects significant upside vs. current levels. JPMorgan Lowers PT to $38
• Negative Sentiment: Mgmt flagged softer Q2 sequential growth (shifted to flat to -1%), and Seeking Alpha noted FY revenue signaling of $1.274B–$1.294B — the slowdown in near‑term sequential growth likely drove some of the selloff given expectations for continued strong cadence. Waystar Signals 2026 Revenue Range; Q2 Growth Reduced

Hedge Funds Weigh In On Waystar

Institutional investors and hedge funds have recently modified their holdings of the business. Salomon & Ludwin LLC acquired a new position in shares of Waystar in the 3rd quarter valued at approximately $25,000. ANTIPODES PARTNERS Ltd grew its position in shares of Waystar by 120.1% in the 3rd quarter. ANTIPODES PARTNERS Ltd now owns 823 shares of the company's stock valued at $31,000 after purchasing an additional 449 shares during the period. First Horizon Corp acquired a new position in shares of Waystar in the 3rd quarter valued at approximately $38,000. Root Financial Partners LLC grew its position in shares of Waystar by 6,475.0% in the 1st quarter. Root Financial Partners LLC now owns 1,052 shares of the company's stock valued at $25,000 after purchasing an additional 1,036 shares during the period. Finally, Smartleaf Asset Management LLC boosted its position in Waystar by 6,005.3% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,160 shares of the company's stock worth $38,000 after acquiring an additional 1,141 shares during the last quarter.

Waystar Trading Down 15.4%

The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.41 and a current ratio of 1.41. The business has a 50-day simple moving average of $24.57 and a two-hundred day simple moving average of $29.74. The stock has a market cap of $4.10 billion, a price-to-earnings ratio of 31.91, a P/E/G ratio of 0.98 and a beta of 0.87.

Waystar (NASDAQ:WAY - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. Waystar had a return on equity of 7.25% and a net margin of 10.90%.The firm had revenue of $313.87 million during the quarter, compared to the consensus estimate of $311.74 million. During the same quarter in the prior year, the firm posted $0.32 EPS. The business's revenue was up 22.4% on a year-over-year basis. Waystar has set its FY 2026 guidance at 1.590-1.680 EPS. As a group, research analysts forecast that Waystar Holding Corp. will post 1.46 EPS for the current year.

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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