HealthStream (NASDAQ:HSTM) Trading Up 7.5% on Better-Than-Expected Earnings

HealthStream, Inc. (NASDAQ:HSTM) 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. Approximately 56,462 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 100,298 shares. The stock had previously closed at $24.11.

The technology company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.10 by $0.07. HealthStream had a net margin of 6.30% and a return on equity of 5.22%. The company had revenue of $72.80 million during the quarter, compared to analysts’ expectations of $71.88 million. During the same quarter in the previous year, the company earned $0.12 EPS. HealthStream’s revenue was up 5.7% on a year-over-year basis.

HealthStream Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 17th. Stockholders of record on Monday, May 6th will be given a dividend of $0.028 per share. This represents a $0.11 annualized dividend and a dividend yield of 0.43%. The ex-dividend date of this dividend is Friday, May 3rd. HealthStream’s dividend payout ratio is 18.97%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. StockNews.com cut shares of HealthStream from a “strong-buy” rating to a “buy” rating in a research report on Wednesday. Barclays began coverage on shares of HealthStream in a research report on Wednesday, January 3rd. They set an “overweight” rating and a $32.00 price target for the company. Finally, William Blair reissued an “outperform” rating on shares of HealthStream in a research note on Tuesday, February 20th. One analyst has rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $32.00.

Insider Buying and Selling

In related news, 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 transaction of $184,380.00. Following the transaction, the senior vice president now owns 14,693 shares of the company’s stock, valued at approximately $387,013.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other HealthStream news, EVP Michael Sousa sold 15,000 shares of HealthStream stock in a transaction that occurred on Monday, February 26th. The shares were sold at an average price of $27.25, for a total value of $408,750.00. Following the transaction, the executive vice president now owns 42,525 shares of the company’s stock, valued at $1,158,806.25. The sale was disclosed in a legal filing with the SEC, which is accessible through 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 transaction of $184,380.00. Following the completion of the transaction, the senior vice president now directly owns 14,693 shares in the company, valued at approximately $387,013.62. The disclosure for this sale can be found here. 20.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Parallel Advisors LLC lifted its stake in HealthStream by 79.4% in the fourth quarter. Parallel Advisors LLC now owns 1,132 shares of the technology company’s stock valued at $31,000 after buying an additional 501 shares in the last quarter. Signaturefd LLC lifted its stake in HealthStream by 568.2% in the third quarter. Signaturefd LLC now owns 1,156 shares of the technology company’s stock valued at $25,000 after buying an additional 983 shares in the last quarter. DekaBank Deutsche Girozentrale bought a new position in HealthStream in the third quarter valued at approximately $30,000. Quantbot Technologies LP bought a new position in HealthStream in the third quarter valued at approximately $34,000. Finally, Diversified Trust Co bought a new position in HealthStream in the first quarter valued at approximately $213,000. Institutional investors own 69.58% of the company’s stock.

HealthStream Price Performance

The stock’s 50 day simple moving average is $26.16 and its two-hundred day simple moving average is $25.88. The stock has a market cap of $787.97 million, a P/E ratio of 44.69, a price-to-earnings-growth ratio of 3.94 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.