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

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

Insider Transactions at HealthStream

In related news, EVP Kevin P. O’hara sold 3,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $24.08, for a total transaction of $72,240.00. Following the completion of the sale, the executive vice president owned 20,982 shares of the company’s stock, valued at $505,246.56. This trade represents a 12.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Linda Rebrovick sold 2,000 shares of HealthStream stock in a transaction that occurred on 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. The trade was a 3.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. The Manufacturers Life Insurance Company grew its holdings in shares of 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 last quarter. Danske Bank A S raised its holdings in shares of HealthStream by 175.0% in the 4th quarter. Danske Bank A S now owns 1,100 shares of the technology company’s stock worth $25,000 after acquiring an additional 700 shares during the last quarter. Snowden Capital Advisors LLC raised its holdings 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 acquiring an additional 816 shares during the last quarter. Jane Street Group LLC lifted its position in HealthStream by 1.9% in the 2nd quarter. Jane Street Group LLC now owns 48,533 shares of the technology company’s stock valued at $1,343,000 after acquiring an additional 922 shares in the last quarter. Finally, Essential Partners LLC acquired a new position in HealthStream during the 1st quarter valued at about $25,000. 69.58% of the stock is owned by institutional investors.

HealthStream Trading Up 2.0%

HealthStream stock traded up $0.55 during midday trading on Monday, reaching $27.28. The stock had a trading volume of 165,255 shares, compared to its average volume of 293,285. The company has a fifty day moving average price of $24.01 and a two-hundred day moving average price of $22.50. HealthStream has a 12 month low of $19.50 and a 12 month high of $29.63. The company has a market capitalization of $797.00 million, a P/E ratio of 40.85, a PEG ratio of 3.03 and a beta of 0.47.

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

HealthStream Announces Dividend

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

HealthStream announced that its board has initiated a stock repurchase plan on Friday, March 13th that allows the company to repurchase $10.00 million in shares. This repurchase authorization allows the technology company to reacquire up to 1.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

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