William Blair Increases 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 researchers at William Blair boosted their FY2025 earnings per share (EPS) estimates for HealthStream in a research report issued to clients and investors on Wednesday, August 6th. William Blair analyst R. Daniels now forecasts that the technology company will post earnings per share of $0.66 for the year, up from their previous forecast 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.

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

Separately, Canaccord Genuity Group dropped their target price on HealthStream from $29.00 to $28.00 and set a "hold" rating on the stock in a research report on Thursday. Two investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, HealthStream presently has an average rating of "Moderate Buy" and an average target price of $31.00.

HealthStream Stock Up 0.8%

HealthStream stock opened at $26.14 on Friday. HealthStream has a 12 month low of $25.36 and a 12 month high of $34.24. The stock has a market cap of $797.92 million, a P/E ratio of 39.02, a P/E/G ratio of 3.37 and a beta of 0.43. The company's fifty day simple moving average is $27.21 and its 200-day simple moving average is $30.09.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC lifted its stake in shares of HealthStream by 30.8% in the first quarter. GAMMA Investing LLC now owns 2,082 shares of the technology company's stock valued at $67,000 after buying an additional 490 shares during the period. SG Americas Securities LLC boosted its stake in HealthStream by 9.3% during the first quarter. SG Americas Securities LLC now owns 18,648 shares of the technology company's stock worth $600,000 after buying an additional 1,584 shares in the last quarter. Principal Financial Group Inc. increased its holdings in HealthStream by 2.5% in the 1st quarter. Principal Financial Group Inc. now owns 129,830 shares of the technology company's stock valued at $4,178,000 after buying an additional 3,157 shares during the period. Harbor Capital Advisors Inc. lifted its holdings in shares of HealthStream by 2.4% during the 1st quarter. Harbor Capital Advisors Inc. now owns 424,790 shares of the technology company's stock worth $13,670,000 after acquiring an additional 10,003 shares during the period. Finally, Polar Asset Management Partners Inc. lifted its holdings in shares of HealthStream by 62.2% during the 4th quarter. Polar Asset Management Partners Inc. now owns 91,952 shares of the technology company's stock worth $2,924,000 after acquiring an additional 35,252 shares during the period. Institutional investors own 69.58% of the company's stock.

HealthStream announced that its Board of Directors has approved a stock buyback plan on Thursday, May 8th that authorizes the company to repurchase $25.00 million in outstanding shares. This repurchase authorization authorizes the technology company to reacquire up to 3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

HealthStream Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, August 18th will be paid a $0.031 dividend. 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 (DPR) is presently 17.91%.

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.

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