Stock Traders Buy Large Volume of HealthStream Call Options (NASDAQ:HSTM)

HealthStream, Inc. (NASDAQ:HSTM) was the recipient of unusually large options trading on Monday. Traders acquired 5,401 call options on the company. This is an increase of approximately 1,352% compared to the average daily volume of 372 call options.

HealthStream Stock Down 0.2%

HealthStream stock opened at $27.21 on Wednesday. HealthStream has a 52 week low of $19.50 and a 52 week high of $29.63. The company has a market capitalization of $794.96 million, a price-to-earnings ratio of 40.66, a price-to-earnings-growth ratio of 3.08 and a beta of 0.47. The stock has a 50-day moving average price of $24.24 and a 200 day moving average price of $22.54.

HealthStream (NASDAQ:HSTM) last issued its quarterly earnings results on Monday, May 4th. The technology company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. HealthStream had a net margin of 6.39% and a return on equity of 6.47%. The company had revenue of $81.20 million for the quarter, compared to the consensus estimate of $79.68 million. Research analysts anticipate that HealthStream will post 0.74 EPS for the current fiscal year.

HealthStream Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were issued a dividend of $0.035 per share. This represents a $0.14 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Monday, May 18th. HealthStream’s dividend payout ratio (DPR) is 20.90%.

HealthStream declared that its Board of Directors has initiated a stock buyback program on Friday, March 13th that allows the company to buyback $10.00 million in shares. This buyback authorization allows the technology company to reacquire up to 1.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at HealthStream

In other HealthStream news, Director Linda Rebrovick sold 2,000 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $25.00, for a total value of $50,000.00. Following the completion of the sale, the director owned 54,181 shares of the company’s stock, valued at approximately $1,354,525. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kevin P. O’hara sold 3,000 shares of the business’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $24.08, for a total value of $72,240.00. Following the sale, the executive vice president owned 20,982 shares in the company, valued at $505,246.56. The trade was a 12.51% decrease in their position. The disclosure for this sale is available in the SEC filing. 20.40% of the stock is owned by insiders.

Institutional Investors Weigh In On HealthStream

Hedge funds have recently added to or reduced their stakes in the business. The Manufacturers Life Insurance Company raised its stake in shares of HealthStream by 6.7% during the 2nd 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 last quarter. Danske Bank A S boosted its stake in shares of HealthStream by 175.0% in the fourth quarter. Danske Bank A S now owns 1,100 shares of the technology company’s stock worth $25,000 after buying an additional 700 shares during the last quarter. Snowden Capital Advisors LLC grew 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 acquiring an additional 816 shares during the period. Jane Street Group LLC grew 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 acquiring an additional 922 shares during the period. Finally, Essential Partners LLC purchased a new position in HealthStream during the first quarter valued at approximately $25,000. 69.58% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

HSTM has been the topic of several research analyst reports. Weiss Ratings raised shares of HealthStream from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Canaccord Genuity Group raised their price target on shares of HealthStream to $24.00 and gave the stock a “hold” rating in a report on Wednesday, May 6th. Finally, Wall Street Zen upgraded shares of HealthStream from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $24.00.

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.