HealthStream (NASDAQ:HSTM) Sets New 1-Year Low – What’s Next?

HealthStream, Inc. (NASDAQ:HSTM)’s share price reached a new 52-week low on Monday . The stock traded as low as $22.72 and last traded at $22.90, with a volume of 185320 shares changing hands. The stock had previously closed at $23.07.

Analyst Upgrades and Downgrades

HSTM has been the subject of several research reports. Wall Street Zen downgraded HealthStream from a “buy” rating to a “hold” rating in a research note on Saturday, November 22nd. Weiss Ratings restated a “hold (c)” rating on shares of HealthStream in a research report on Wednesday, October 8th. Canaccord Genuity Group reaffirmed a “hold” rating and issued a $28.00 price target on shares of HealthStream in a report on Wednesday, December 17th. Finally, Citigroup reissued a “market perform” rating on shares of HealthStream in a research note on Tuesday. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $28.00.

HealthStream Stock Performance

The company has a market capitalization of $686.86 million, a PE ratio of 34.04, a price-to-earnings-growth ratio of 2.49 and a beta of 0.43. The stock’s fifty day simple moving average is $24.39 and its 200-day simple moving average is $26.26.

HealthStream (NASDAQ:HSTM) last issued its quarterly earnings results on Monday, November 3rd. The technology company reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The business had revenue of $76.47 million during the quarter, compared to the consensus estimate of $75.52 million. HealthStream had a net margin of 6.93% and a return on equity of 5.82%. On average, equities analysts anticipate that HealthStream, Inc. will post 0.63 EPS for the current year.

HealthStream Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, November 28th. Shareholders of record on Monday, November 17th were issued a $0.031 dividend. The ex-dividend date was Monday, November 17th. This represents a $0.12 annualized dividend and a yield of 0.5%. HealthStream’s payout ratio is 17.65%.

HealthStream declared that its board has approved a stock buyback plan on Tuesday, November 11th that allows the company to repurchase $10.00 million in shares. This repurchase authorization allows the technology company to purchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Kevin P. O’hara sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $24.26, for a total value of $48,520.00. Following the completion of the sale, the executive vice president directly owned 16,373 shares in the company, valued at approximately $397,208.98. The trade was a 10.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Tate Deborah Taylor sold 1,580 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $25.46, for a total transaction of $40,226.80. Following the transaction, the director directly owned 23,127 shares of the company’s stock, valued at $588,813.42. This trade represents a 6.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 5,680 shares of company stock valued at $139,336. Insiders own 20.60% of the company’s stock.

Institutional Trading of HealthStream

Several institutional investors have recently made changes to their positions in HSTM. Aquatic Capital Management LLC purchased a new position in shares of HealthStream in the 3rd quarter worth $40,000. Tower Research Capital LLC TRC raised its holdings in shares of HealthStream by 241.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,407 shares of the technology company’s stock worth $67,000 after purchasing an additional 1,702 shares during the period. GAMMA Investing LLC lifted its stake in shares of HealthStream by 131.4% in the 4th quarter. GAMMA Investing LLC now owns 3,649 shares of the technology company’s stock valued at $84,000 after purchasing an additional 2,072 shares in the last quarter. State of Wyoming acquired a new position in shares of HealthStream in the 2nd quarter valued at about $106,000. Finally, PNC Financial Services Group Inc. grew its holdings in shares of HealthStream by 149.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 4,760 shares of the technology company’s stock worth $134,000 after purchasing an additional 2,854 shares during the period. 69.58% of the stock is owned by hedge funds and other institutional investors.

About HealthStream

HealthStream, Inc is a Nashville, Tennessee–based provider of workforce development and learning management solutions for healthcare organizations. Since its founding in 1990, the company has focused on helping hospitals, clinics and other care providers streamline staff training, ensure regulatory compliance and monitor employee performance. HealthStream’s platform integrates online courses, skill competency assessments and credential management tools to support workforce readiness across the healthcare continuum.

The company’s core offerings include a learning management system (LMS) designed specifically for clinical and nonclinical personnel, a competency management suite that tracks skill acquisition and validation, and a content library featuring evidence-based clinical and compliance training modules.