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

HealthStream, Inc. (NASDAQ:HSTM)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $21.33 and last traded at $21.5350, with a volume of 11103 shares. The stock had previously closed at $21.81.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Citigroup reissued a “market perform” rating on shares of HealthStream in a research note on Tuesday, January 6th. Canaccord Genuity Group set a $25.00 price target on shares of HealthStream in a report on Thursday, January 8th. Weiss Ratings reissued a “hold (c)” rating on shares of HealthStream in a research report on Wednesday, October 8th. Finally, Wall Street Zen lowered HealthStream from a “buy” rating to a “hold” rating in a research report on Saturday, November 22nd. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, HealthStream currently has an average rating of “Hold” and a consensus price target of $25.00.

HealthStream Trading Up 1.1%

The stock has a market capitalization of $637.01 million, a price-to-earnings ratio of 31.57, a price-to-earnings-growth ratio of 2.30 and a beta of 0.43. The company has a fifty day moving average of $23.68 and a two-hundred day moving average of $25.82.

HealthStream (NASDAQ:HSTM) last released its quarterly earnings results on Monday, November 3rd. The technology company reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.03. HealthStream had a net margin of 6.93% and a return on equity of 5.82%. The company had revenue of $76.47 million for the quarter, compared to analyst estimates of $75.52 million. As a group, sell-side analysts predict that HealthStream, Inc. will post 0.63 earnings per share for the current fiscal year.

HealthStream Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, November 28th. Stockholders of record on Monday, November 17th were given a dividend of $0.031 per share. The ex-dividend date of this dividend was Monday, November 17th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.6%. HealthStream’s dividend payout ratio (DPR) is currently 17.65%.

HealthStream announced that its board has approved a stock repurchase plan on Tuesday, November 11th that authorizes the company to repurchase $10.00 million in outstanding shares. This repurchase authorization authorizes the technology company to purchase up to 1.3% of its shares through open market purchases. Shares repurchase plans are generally 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 HealthStream stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $24.26, for a total value of $48,520.00. Following the sale, the executive vice president owned 16,373 shares of the company’s stock, valued at approximately $397,208.98. This trade represents a 10.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Tate Deborah Taylor sold 1,580 shares of the business’s stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $25.46, for a total value of $40,226.80. Following the completion of the sale, the director owned 23,127 shares in the company, valued at $588,813.42. The trade was a 6.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 5,680 shares of company stock worth $139,336. Corporate insiders own 20.50% of the company’s stock.

Institutional Trading of HealthStream

A number of institutional investors have recently made changes to their positions in HSTM. Legal & General Group Plc boosted its holdings in shares of HealthStream by 0.6% during the 2nd quarter. Legal & General Group Plc now owns 68,883 shares of the technology company’s stock valued at $1,906,000 after acquiring an additional 424 shares in the last quarter. Bridge City Capital LLC lifted its stake in shares of HealthStream by 0.8% in the second quarter. Bridge City Capital LLC now owns 58,977 shares of the technology company’s stock worth $1,632,000 after acquiring an additional 441 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in HealthStream by 6.7% in the second quarter. The Manufacturers Life Insurance Company now owns 9,354 shares of the technology company’s stock valued at $259,000 after acquiring an additional 586 shares during the last quarter. Police & Firemen s Retirement System of New Jersey raised its holdings in HealthStream by 14.9% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 5,843 shares of the technology company’s stock worth $162,000 after purchasing an additional 758 shares during the last quarter. Finally, Snowden Capital Advisors LLC lifted its position in shares of HealthStream by 8.7% in the 2nd quarter. Snowden Capital Advisors LLC now owns 10,196 shares of the technology company’s stock worth $282,000 after purchasing an additional 816 shares during the period. Institutional investors own 69.58% of the company’s stock.

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.