Waystar (NASDAQ:WAY) Shares Gap Down Following 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) shares 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 trading hands.

Specifically, CFO Steven M. Oreskovich sold 16,666 shares of the firm's stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $40.49, for a total transaction of $674,806.34. Following the sale, the chief financial officer directly owned 354,512 shares of the company's stock, valued at $14,354,190.88. This trade represents a 4.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Christopher L. Schremser sold 8,623 shares of the stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $40.49, for a total value of $349,145.27. Following the sale, the chief technology officer owned 422,371 shares of the company's stock, valued at $17,101,801.79. This represents a 2.00% decrease in their position. The disclosure for this sale can be found here. In related news, insider Eric L. (Ric) Sinclair III sold 19,404 shares of the business's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $40.03, for a total value of $776,742.12. Following the transaction, the insider directly owned 474,826 shares of the company's stock, valued at approximately $19,007,284.78. The trade was a 3.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

WAY has been the topic of several recent analyst reports. Mizuho initiated coverage on shares of Waystar in a research report on Monday, June 30th. They set an "outperform" rating and a $48.00 price objective on the stock. Citigroup began coverage on Waystar in a research report on Wednesday, June 25th. They set a "buy" rating and a $45.00 target price for the company. TD Cowen raised shares of Waystar to a "strong-buy" rating in a report on Thursday, June 5th. Truist Financial upped their price target on shares of Waystar from $50.00 to $51.00 and gave the company a "buy" rating in a research note on Thursday, July 17th. Finally, Baird R W upgraded shares of Waystar to a "strong-buy" rating in a research report on Friday, September 5th. Three equities 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, the stock has a consensus rating of "Buy" and a consensus target price of $44.67.

Waystar Stock Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 3.43 and a current ratio of 3.43. The firm's fifty day moving average price is $36.76 and its 200 day moving average price is $37.84. The firm has a market cap of $6.68 billion, a P/E ratio of 79.74, a price-to-earnings-growth ratio of 0.68 and a beta of 0.78.

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

Institutional Investors Weigh In On Waystar

A number of hedge funds have recently made changes to their positions in WAY. PNC Financial Services Group Inc. lifted its position in shares of Waystar by 2.1% during the first quarter. PNC Financial Services Group Inc. now owns 14,687 shares of the company's stock valued at $549,000 after buying an additional 304 shares during the last quarter. Verdence Capital Advisors LLC lifted its position in Waystar by 5.2% during the second quarter. Verdence Capital Advisors LLC now owns 7,076 shares of the company's stock valued at $289,000 after acquiring an additional 348 shares during the last quarter. Nisa Investment Advisors LLC boosted its stake in Waystar by 50.6% in the second quarter. Nisa Investment Advisors LLC now owns 1,065 shares of the company's stock valued at $44,000 after acquiring an additional 358 shares in the last quarter. State of Wyoming grew its holdings in Waystar by 45.1% in the second quarter. State of Wyoming now owns 2,098 shares of the company's stock worth $86,000 after purchasing an additional 652 shares during the last quarter. Finally, Central Pacific Bank Trust Division purchased a new position in Waystar in the second quarter worth $33,000.

About Waystar

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