HealthStream (NASDAQ:HSTM) Stock Price Up 7.5% on Earnings Beat

HealthStream, Inc. (NASDAQ:HSTM)’s share price traded up 7.5% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $26.72 and last traded at $25.91. 56,462 shares changed hands during trading, a decline of 44% from the average session volume of 100,298 shares. The stock had previously closed at $24.11.

The technology company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.07. HealthStream had a net margin of 5.45% and a return on equity of 4.71%. The business had revenue of $72.80 million for the quarter, compared to analysts’ expectations of $71.88 million. During the same quarter in the prior year, the business earned $0.12 EPS. The business’s revenue for the quarter was up 5.7% compared to the same quarter last year.

HealthStream Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 22nd. Shareholders of record on Monday, March 11th were paid a dividend of $0.028 per share. This represents a $0.11 annualized dividend and a yield of 0.43%. This is a positive change from HealthStream’s previous quarterly dividend of $0.03. The ex-dividend date was Friday, March 8th. HealthStream’s payout ratio is presently 22.00%.

Analyst Ratings Changes

Several research firms have recently weighed in on HSTM. William Blair reiterated an “outperform” rating on shares of HealthStream in a research report on Tuesday, February 20th. Barclays began coverage on HealthStream in a research note on Wednesday, January 3rd. They set an “overweight” rating and a $32.00 price target on the stock. Finally, StockNews.com upgraded HealthStream from a “buy” rating to a “strong-buy” rating in a research note on Thursday, April 11th. One equities research analyst has rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $32.00.

Insider Transactions at HealthStream

In related news, EVP Michael Sousa sold 15,000 shares of the stock in a transaction dated Monday, February 26th. The stock was sold at an average price of $27.25, for a total transaction of $408,750.00. Following the transaction, the executive vice president now owns 42,525 shares of the company’s stock, valued at approximately $1,158,806.25. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, EVP Michael Sousa sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, February 26th. The stock was sold at an average price of $27.25, for a total transaction of $408,750.00. Following the transaction, the executive vice president now owns 42,525 shares in the company, valued at approximately $1,158,806.25. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Trisha L. Coady sold 7,000 shares of HealthStream stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $26.34, for a total value of $184,380.00. Following the completion of the transaction, the senior vice president now owns 14,693 shares in the company, valued at $387,013.62. The disclosure for this sale can be found here. Company insiders own 20.60% of the company’s stock.

Institutional Trading of HealthStream

A number of institutional investors have recently modified their holdings of HSTM. SG Americas Securities LLC purchased a new stake in shares of HealthStream in the third quarter valued at approximately $252,000. Summit Global Investments acquired a new position in HealthStream during the third quarter worth $286,000. Exchange Traded Concepts LLC raised its holdings in HealthStream by 126.2% during the third quarter. Exchange Traded Concepts LLC now owns 58,353 shares of the technology company’s stock worth $1,259,000 after purchasing an additional 32,553 shares during the last quarter. Strs Ohio raised its holdings in HealthStream by 10.7% during the third quarter. Strs Ohio now owns 27,900 shares of the technology company’s stock worth $602,000 after purchasing an additional 2,700 shares during the last quarter. Finally, Cambiar Investors LLC raised its holdings in HealthStream by 21.2% during the third quarter. Cambiar Investors LLC now owns 111,321 shares of the technology company’s stock worth $2,402,000 after purchasing an additional 19,499 shares during the last quarter. 69.58% of the stock is currently owned by hedge funds and other institutional investors.

HealthStream Stock Up 8.8 %

The firm has a fifty day moving average of $26.17 and a 200-day moving average of $25.85. The stock has a market capitalization of $797.70 million, a price-to-earnings ratio of 48.22, a PEG ratio of 4.06 and a beta of 0.36.

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.