Phreesia (NYSE:PHR) Shares Gap Down Following Analyst Downgrade

Phreesia, Inc. (NYSE:PHR) gapped down prior to trading on Wednesday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $9.17, but opened at $8.84. Wells Fargo & Company now has a $9.00 price target on the stock. Phreesia shares last traded at $8.7870, with a volume of 367,992 shares trading hands.

A number of other equities analysts also recently issued reports on the company. Wall Street Zen downgraded Phreesia from a “buy” rating to a “hold” rating in a research report on Saturday, April 4th. Barclays reaffirmed an “equal weight” rating and issued a $10.00 price target (down from $24.00) on shares of Phreesia in a research report on Thursday, May 14th. Canaccord Genuity Group reduced their price objective on shares of Phreesia from $33.00 to $22.00 and set a “buy” rating for the company in a research note on Tuesday, March 31st. Stephens lowered their target price on Phreesia from $32.00 to $20.00 and set an “overweight” rating for the company in a report on Tuesday, March 31st. Finally, JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $16.00 price target (down from $24.00) on shares of Phreesia in a report on Tuesday, March 31st. Ten research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $19.06.

Insiders Place Their Bets

In other news, insider Yvonne Hui sold 10,063 shares of the company’s stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $9.08, for a total transaction of $91,372.04. Following the transaction, the insider owned 25,991 shares in the company, valued at $235,998.28. This represents a 27.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David Linetsky sold 8,332 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $8.07, for a total transaction of $67,239.24. Following the completion of the transaction, the insider directly owned 224,056 shares of the company’s stock, valued at $1,808,131.92. The trade was a 3.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 50,493 shares of company stock worth $461,983 in the last three months. Insiders own 5.50% of the company’s stock.

More Phreesia News

Here are the key news stories impacting Phreesia this week:

• Positive Sentiment: Phreesia is approaching Wall Street’s lowered target price, which may limit further downside if investors view the selloff as overdone. The Fly / Zacks / Tickerreport downgrade coverage
• Neutral Sentiment: Several firms, including Rosen, Pomerantz, Faruqi & Faruqi, and others, issued reminders and alerts about the already-filed securities class action, with a lead-plaintiff deadline of July 13, 2026. These notices reinforce the litigation overhang but do not add new operating information. Rosen Law Firm article
• Neutral Sentiment: Analysts are also looking ahead to Phreesia’s next quarterly results, with coverage focused on expectations for key operating metrics ahead of the report. Zacks preview
• Negative Sentiment: The securities fraud lawsuit and related investor alerts raise the risk of legal costs, management distraction, and reputational damage, which is likely weighing on Phreesia’s stock. Kirby McInerney shareholder alert
• Negative Sentiment: Wells Fargo’s downgrade from strong-buy to hold and the sharp target reduction signal reduced confidence in Phreesia’s near-term outlook. Motley Fool downgrade commentary

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its position in Phreesia by 1,119.8% during the first quarter. EverSource Wealth Advisors LLC now owns 3,269 shares of the company’s stock valued at $27,000 after acquiring an additional 3,001 shares in the last quarter. Federated Hermes Inc. acquired a new position in Phreesia in the 3rd quarter valued at about $32,000. Van ECK Associates Corp lifted its stake in shares of Phreesia by 78.7% in the 4th quarter. Van ECK Associates Corp now owns 2,502 shares of the company’s stock valued at $42,000 after purchasing an additional 1,102 shares during the last quarter. New York State Teachers Retirement System acquired a new position in Phreesia during the 1st quarter worth about $44,000. Finally, Rockefeller Capital Management L.P. boosted its stake in shares of Phreesia by 354.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,755 shares of the company’s stock valued at $47,000 after buying an additional 2,149 shares during the period. 92.10% of the stock is currently owned by institutional investors and hedge funds.

Phreesia Price Performance

The firm has a fifty day moving average of $9.70 and a 200 day moving average of $14.07. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.41. The stock has a market cap of $542.34 million, a PE ratio of 292.13 and a beta of 0.89.

Phreesia (NYSE:PHR) last released its quarterly earnings data on Monday, March 30th. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.05). Phreesia had a return on equity of 3.23% and a net margin of 0.48%.The company had revenue of $127.07 million for the quarter, compared to analyst estimates of $126.75 million. During the same period in the previous year, the business posted ($0.11) EPS. The firm’s revenue for the quarter was up 15.9% compared to the same quarter last year. On average, equities research analysts anticipate that Phreesia, Inc. will post 0.28 EPS for the current fiscal year.

About Phreesia

Phreesia, Inc (NYSE: PHR) is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company’s cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.