HealthStream (NASDAQ:HSTM) Stock Price Down 6.6% – Time to Sell?

HealthStream, Inc. (NASDAQ:HSTM)’s stock price was down 6.6% on Tuesday. The stock traded as low as $33.56 and last traded at $32.2860. Approximately 159,033 shares were traded during mid-day trading, a decline of 36% from the average session volume of 250,321 shares. The stock had previously closed at $34.58.

HealthStream News Roundup

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: HealthStream reported third-quarter revenue of $83.3 million, up 8.9% year over year and above the $82.2 million-$82.3 million analyst estimates. HealthStream Announces Third Quarter 2026 Results
• Positive Sentiment: Third-quarter EPS was $0.18, beating consensus estimates ranging from $0.15 to $0.16 by $0.02-$0.03. HealthStream Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management issued fiscal 2026 revenue guidance of $331.0 million to $333.0 million, above the $329.5 million consensus forecast, signaling continued confidence in demand and execution.
• Positive Sentiment: HealthStream also declared a dividend, providing an additional shareholder-return benefit. HealthStream Reports Third-Quarter Results and Declares Dividend

Wall Street Analyst Weigh In

Several research analysts have commented on HSTM shares. Weiss Ratings upgraded shares of HealthStream from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Citigroup reaffirmed a “market perform” rating on shares of HealthStream in a report on Tuesday, October 27th. Canaccord Genuity Group boosted their price objective on HealthStream from $24.00 to $27.00 and gave the stock a “hold” rating in a research report on Tuesday, July 21st. Wall Street Zen raised HealthStream from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Freedom Capital upgraded HealthStream to a “hold” rating in a research report on Tuesday, October 13th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $27.00.

HealthStream Trading Down 5.1%

The stock has a market cap of $958.60 million, a P/E ratio of 45.58, a price-to-earnings-growth ratio of 3.90 and a beta of 0.45. The stock’s 50-day moving average is $31.05 and its 200-day moving average is $25.65.

HealthStream (NASDAQ:HSTM) last issued its quarterly earnings results on Monday, November 2nd. The technology company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.02. HealthStream had a net margin of 6.60% and a return on equity of 6.81%. The company had revenue of $83.31 million during the quarter, compared to analyst estimates of $82.24 million. On average, equities analysts forecast that HealthStream, Inc. will post 0.72 EPS for the current year.

Insider Buying and Selling at HealthStream

In other HealthStream news, Director Linda Rebrovick sold 12,000 shares of the business’s stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $35.00, for a total value of $420,000.00. Following the sale, the director directly owned 39,329 shares in the company, valued at approximately $1,376,515. The trade was a 23.38% 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 this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert A. Frist, Jr. sold 144,068 shares of the company’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $29.50, for a total transaction of $4,250,006.00. Following the completion of the sale, the chief executive officer directly owned 3,907,038 shares of the company’s stock, valued at $115,257,621. The trade was a 3.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 20.40% of the company’s stock.

Institutional Trading of HealthStream

A number of hedge funds and other institutional investors have recently made changes to their positions in HSTM. Arrowstreet Capital Limited Partnership grew its position in HealthStream by 21.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 377,945 shares of the technology company’s stock worth $7,827,000 after buying an additional 65,806 shares during the last quarter. Quantinno Capital Management LP grew its holdings in shares of HealthStream by 283.5% in the 1st quarter. Quantinno Capital Management LP now owns 50,169 shares of the technology company’s stock worth $1,039,000 after acquiring an additional 37,088 shares during the last quarter. Lazard Asset Management LLC raised its position in shares of HealthStream by 268.2% during the first quarter. Lazard Asset Management LLC now owns 157,208 shares of the technology company’s stock worth $3,256,000 after purchasing an additional 114,511 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of HealthStream during the second quarter worth $6,199,000. Finally, Dimensional Fund Advisors LP raised its position in shares of HealthStream by 6.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,456,043 shares of the technology company’s stock worth $30,156,000 after purchasing an additional 87,177 shares during the period. 69.58% of the stock is currently owned by institutional investors.

About HealthStream

HealthStream, Inc provides workforce and provider solutions designed for healthcare organizations. Its software and services help hospitals, health systems, medical practices and other healthcare providers manage employee education, training, credentialing, compliance and professional development.

The company’s offerings include learning management and education tools, competency and performance-management solutions, and systems for managing provider credentials, privileging and enrollment.