HealthStream (NASDAQ:HSTM) Hits New 1-Year High After Earnings Beat

Shares of HealthStream, Inc. (NASDAQ:HSTM) reached a new 52-week high during trading on Tuesday following a better than expected earnings announcement. The company traded as high as $30.29 and last traded at $29.8850, with a volume of 28468 shares changing hands. The stock had previously closed at $28.33.

The technology company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.06. The firm had revenue of $83.73 million for the quarter, compared to analyst estimates of $80.82 million. HealthStream had a net margin of 6.39% and a return on equity of 6.47%.

HealthStream Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Monday, August 17th will be paid a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Monday, August 17th. HealthStream’s payout ratio is currently 20.90%.

HealthStream News Summary

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. HealthStream reported second-quarter revenue of $83.7 million, up 12.5% year over year and a company record. Adjusted earnings were $0.23 per share, above the $0.17 analyst consensus and up from $0.18 a year earlier. HealthStream Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved substantially. Operating income increased 41.4% to $8.3 million, net income rose 23.8% to $6.7 million, and adjusted EBITDA grew 16.9% to $20.6 million. The results suggest operating leverage as the healthcare technology platform expands. HealthStream Announces Second Quarter 2026 Results
• Positive Sentiment: Full-year revenue guidance was maintained or updated near analyst expectations. HealthStream projected 2026 revenue of $327 million to $332 million, broadly aligned with the approximately $327.2 million consensus estimate. The company also forecast full-year net income of $19.5 million to $22.2 million. HealthStream Posts Strong Q2 Results and Raises Guidance
• Positive Sentiment: Capital returns provide additional support. The board declared a quarterly dividend of $0.035 per share, equivalent to $0.14 annually and an indicated yield of about 0.5%. HealthStream also repurchased 432,476 shares for $9.3 million during the first half of 2026. HealthStream Q2 Revenue Rises 12.5%
• Neutral Sentiment: Balance-sheet flexibility remains favorable. HealthStream held $66.7 million in cash, cash equivalents and marketable securities at June 30 and reported no outstanding borrowed debt.
• Negative Sentiment: Recent insider selling may temper sentiment. Executives reported three open-market sales totaling 11,000 shares over the past six months, with no purchases disclosed. The shares also trade at a relatively elevated valuation, which could increase sensitivity to future execution or guidance changes.

Analyst Upgrades and Downgrades

HSTM has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of HealthStream from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Canaccord Genuity Group boosted their target price on shares of HealthStream from $24.00 to $27.00 and gave the company a “hold” rating in a report on Tuesday, July 21st. Finally, Weiss Ratings upgraded HealthStream from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $27.00.

Insider Buying and Selling at HealthStream

In other news, EVP Kevin P. O’hara sold 3,000 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $24.08, for a total transaction of $72,240.00. Following the transaction, the executive vice president owned 20,982 shares of the company’s stock, valued at $505,246.56. This represents a 12.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Linda Rebrovick sold 6,000 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $29.00, for a total value of $174,000.00. Following the completion of the sale, the director owned 51,329 shares of the company’s stock, valued at approximately $1,488,541. This represents a 10.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 11,000 shares of company stock worth $296,240. 20.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in HSTM. MassMutual Private Wealth & Trust FSB increased its position in shares of HealthStream by 76.4% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 1,025 shares of the technology company’s stock valued at $28,000 after purchasing an additional 444 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in HealthStream by 6.7% during the second quarter. The Manufacturers Life Insurance Company now owns 9,354 shares of the technology company’s stock valued at $259,000 after buying an additional 586 shares during the period. Danske Bank A S grew its position in HealthStream by 175.0% during the fourth quarter. Danske Bank A S now owns 1,100 shares of the technology company’s stock valued at $25,000 after buying an additional 700 shares during the period. Snowden Capital Advisors LLC increased its holdings in HealthStream by 8.7% during the second quarter. Snowden Capital Advisors LLC now owns 10,196 shares of the technology company’s stock worth $282,000 after buying an additional 816 shares during the last quarter. Finally, Jane Street Group LLC increased its holdings in HealthStream by 1.9% during the second quarter. Jane Street Group LLC now owns 48,533 shares of the technology company’s stock worth $1,343,000 after buying an additional 922 shares during the last quarter. Institutional investors own 69.58% of the company’s stock.

HealthStream Stock Up 5.8%

The firm has a market cap of $875.72 million, a P/E ratio of 44.74, a price-to-earnings-growth ratio of 3.18 and a beta of 0.45. The firm’s 50-day simple moving average is $26.89 and its 200 day simple moving average is $23.36.

HealthStream Company Profile

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.