Waystar (NASDAQ:WAY) Shares Gap Down After Insider Selling

Key Points

• Waystar Holding Corp. experienced a significant stock price drop, opening at $38.99 after an insider sold 19,404 shares at an average price of $40.03, reducing their ownership by 3.93%.
• Despite the insider selling, equities analysts have generally rated Waystar positively, with several upgrades to "strong-buy" and a consensus price target of $44.67.
• The company reported a 15.4% increase in revenue year-over-year, achieving $270.65 million in the last quarter, and exceeded earnings expectations with an EPS of $0.36.

Waystar Holding Corp. (NASDAQ:WAY - Get Free Report) gapped down before the market opened on Thursday after an insider sold shares in the company. The stock had previously closed at $40.50, but opened at $38.99. Waystar shares last traded at $38.62, with a volume of 1,077,283 shares changing hands.

Specifically, insider Eric L. (Ric) Sinclair III sold 19,404 shares of Waystar stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $40.03, for a total value of $776,742.12. Following the sale, the insider directly owned 474,826 shares in the company, valued at $19,007,284.78. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider T. Craig Bridge sold 85,000 shares of Waystar stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $40.06, for a total transaction of $3,405,100.00. Following the completion of the sale, the insider owned 583,355 shares in the company, valued at $23,369,201.30. This trade represents a 12.72% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on WAY shares. TD Cowen upgraded shares of Waystar to a "strong-buy" rating in a report on Thursday, June 5th. Baird R W raised shares of Waystar to a "strong-buy" rating in a research report on Friday, September 5th. Mizuho began coverage on shares of Waystar in a research report on Monday, June 30th. They issued an "outperform" rating and a $48.00 price objective for the company. Citigroup began coverage on shares of Waystar in a research report on Wednesday, June 25th. They issued a "buy" rating and a $45.00 price objective for the company. Finally, Truist Financial lifted their price objective on shares of Waystar from $50.00 to $51.00 and gave the company a "buy" rating in a research report on Thursday, July 17th. Three research analysts have rated the stock with a Strong Buy rating and eleven have issued a Buy rating to the company. According to data from MarketBeat.com, Waystar presently has an average rating of "Buy" and a consensus price target of $44.67.

Waystar Stock Performance

The stock has a market capitalization of $6.76 billion, a price-to-earnings ratio of 80.72, a P/E/G ratio of 0.75 and a beta of 0.78. The company's fifty day simple moving average is $36.83 and its 200 day simple moving average is $37.99. The company has a quick ratio of 3.43, a current ratio of 3.43 and a debt-to-equity ratio of 0.39.

Waystar (NASDAQ:WAY - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.33 by $0.03. Waystar had a net margin of 8.50% and a return on equity of 5.65%. The business had revenue of $270.65 million for the quarter, compared to the consensus estimate of $255.26 million. During the same period in the prior year, the company posted $0.04 earnings per share. Waystar's revenue was up 15.4% compared to the same quarter last year. Waystar has set its FY 2025 guidance at 1.360-1.400 EPS. On average, equities research analysts expect that Waystar Holding Corp. will post 0.39 earnings per share for the current year.

Institutional Trading of Waystar

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Squarepoint Ops LLC raised its stake in Waystar by 473.9% in the 2nd quarter. Squarepoint Ops LLC now owns 54,891 shares of the company's stock worth $2,243,000 after purchasing an additional 45,326 shares in the last quarter. Munro Partners acquired a new stake in Waystar in the 2nd quarter worth about $3,523,000. State of Wyoming raised its stake in Waystar by 45.1% in the 2nd quarter. State of Wyoming now owns 2,098 shares of the company's stock worth $86,000 after purchasing an additional 652 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in Waystar in the 2nd quarter worth about $2,333,000. Finally, Castleark Management LLC grew its stake in Waystar by 15.8% during the second quarter. Castleark Management LLC now owns 176,595 shares of the company's stock worth $7,217,000 after buying an additional 24,090 shares in the last quarter.

Waystar Company Profile

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

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