William Blair Raises Earnings Estimates for HealthStream

Key Points

• William Blair has raised its FY2025 earnings per share estimate for HealthStream to $0.66, up from $0.64, contrasting with the current consensus estimate of $0.63.
• HealthStream reported Q2 earnings of $0.18 per share, exceeding analysts' expectations, alongside revenue of $74.40 million, slightly above the consensus estimate.
• The company is initiating a stock buyback program authorizing up to $25 million in repurchases, indicating management’s confidence in the company's valuation.

HealthStream, Inc. (NASDAQ:HSTM - Free Report) - Equities research analysts at William Blair lifted their FY2025 EPS estimates for shares of HealthStream in a research note issued on Wednesday, August 6th. William Blair analyst R. Daniels now expects that the technology company will earn $0.66 per share for the year, up from their previous estimate of $0.64. The consensus estimate for HealthStream's current full-year earnings is $0.63 per share. William Blair also issued estimates for HealthStream's Q4 2025 earnings at $0.17 EPS and FY2026 earnings at $0.73 EPS.

Separately, Canaccord Genuity Group decreased their price objective on shares of HealthStream from $29.00 to $28.00 and set a "hold" rating on the stock in a report on Thursday, August 7th. Two analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $31.00.

HealthStream Stock Up 2.1%

NASDAQ:HSTM traded up $0.54 during mid-day trading on Friday, reaching $26.50. 60,641 shares of the company were exchanged, compared to its average volume of 178,536. HealthStream has a 12 month low of $25.36 and a 12 month high of $34.24. The company has a fifty day moving average of $27.12 and a 200 day moving average of $29.98. The stock has a market cap of $785.46 million, a PE ratio of 39.54, a PEG ratio of 3.31 and a beta of 0.43.

HealthStream (NASDAQ:HSTM - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The technology company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.02. HealthStream had a net margin of 6.89% and a return on equity of 5.70%. The firm had revenue of $74.40 million for the quarter, compared to analyst estimates of $74.39 million.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. First Horizon Advisors Inc. lifted its position in HealthStream by 99.6% during the 1st quarter. First Horizon Advisors Inc. now owns 1,056 shares of the technology company's stock valued at $34,000 after purchasing an additional 527 shares during the period. GAMMA Investing LLC raised its position in shares of HealthStream by 30.8% in the 1st quarter. GAMMA Investing LLC now owns 2,082 shares of the technology company's stock valued at $67,000 after acquiring an additional 490 shares during the period. PNC Financial Services Group Inc. raised its position in shares of HealthStream by 62.5% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,625 shares of the technology company's stock valued at $84,000 after acquiring an additional 1,010 shares during the period. Bessemer Group Inc. raised its position in shares of HealthStream by 1,074.6% in the 4th quarter. Bessemer Group Inc. now owns 3,747 shares of the technology company's stock valued at $119,000 after acquiring an additional 3,428 shares during the period. Finally, Virtus Advisers LLC acquired a new stake in shares of HealthStream in the 1st quarter valued at approximately $161,000. 69.58% of the stock is currently owned by institutional investors and hedge funds.

HealthStream Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, August 18th will be given a dividend of $0.031 per share. The ex-dividend date is Monday, August 18th. This represents a $0.12 dividend on an annualized basis and a yield of 0.5%. HealthStream's dividend payout ratio is presently 17.91%.

HealthStream announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 8th that permits the company to repurchase $25.00 million in outstanding shares. This repurchase authorization permits the technology company to purchase up to 3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

HealthStream Company Profile

HealthStream, Inc provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company's solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs.