HealthStream Inc (NASDAQ:HSTM) director Deborah Taylor Tate has sold 1,400 shares of the company's common stock, according to a recent SEC filing. The transaction, which took place on August 29, 2024, was executed at a weighted average price of $28.5268 per share, with the sale amounting to a total value of $39,937. The sales were conducted in a series of trades at prices ranging from $28.47 to $28.58.
Following the transaction, Tate's holdings in HealthStream have decreased, leaving her with a total of 22,326 shares in the company. HealthStream, based in Nashville, Tennessee, operates in the computer programming and data processing sector, providing solutions for workforce development, patient experience, and provider solutions among other services.
The sale by Tate, who serves as a director of HealthStream, is a routine disclosure reported through the SEC's Form 4 filing. The disclosure includes a commitment by the reporting person to provide full information regarding the number of shares and the prices at which the transactions were effected upon request.
Investors often monitor insider transactions as they can provide insights into the executive's view of the company's stock value and future performance. However, such transactions are common and can be motivated by various factors unrelated to the company's outlook.
HealthStream's stock is publicly traded on the NASDAQ, where investors can follow its performance under the ticker symbol HSTM.
In other recent news, HealthStream has seen significant growth in the second quarter of 2024 despite facing a few challenges. The company's revenues rose to $71.6 million, a year-over-year increase primarily driven by subscription products which accounted for 96% of total revenues. Operating income and net income also increased, despite a $1 million loss due to the bankruptcy of Steward Health, a strategic account.
Canaccord Genuity maintained a Hold rating on HealthStream, while increasing the price target to $28 from $27, following the company's consistent performance in the recent quarter. The firm noted that HealthStream successfully implemented a 3.5% annual pricing increase with a west coast client and its e-commerce channels contributed $0.8 million to the quarter's revenue.
Despite a 15% decline in ANSOS revenue, HealthStream's ShiftWizard scheduling solution added eight new customers in the quarter, growing its revenue by 34%. The company also generated over 110,000 new hStream IDs and focused on expanding into the health plan market with Network (LON:NETW) by HealthStream. HealthStream reiterated its 2024 guidance ranges and remains committed to its healthcare technology solutions, expressing optimism for the future.
InvestingPro Insights
HealthStream Inc (NASDAQ:HSTM) has shown a robust financial performance in recent times, as reflected in the real-time metrics from InvestingPro. With a market capitalization of $875.45 million, HealthStream operates with a moderate level of debt and has been able to maintain a gross profit margin of 66.36% over the last twelve months as of Q2 2024. This indicates the company's efficiency in managing its costs relative to its revenue.
InvestingPro Tips highlight that HealthStream has a perfect Piotroski Score of 9, suggesting strong financial health and potentially lower bankruptcy risk. Additionally, management has been actively involved in repurchasing shares, which can often be interpreted as a signal of confidence in the company's future prospects. On the flip side, analysts have revised their earnings downwards for the upcoming period, which could be a point of consideration for investors looking at near-term performance.
The stock's valuation, with a P/E ratio of 49.01 and an adjusted P/E ratio for the last twelve months as of Q2 2024 of 50.05, suggests that HealthStream is trading at a high earnings multiple. This could indicate that the stock is priced on the higher side relative to its earnings. However, the company's valuation implies a strong free cash flow yield, which can be attractive to investors looking for cash-generating investments.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for HealthStream, which can be found at InvestingPro's HealthStream page. These insights provide further details on the company's trading patterns, valuation multiples, and profitability forecasts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.