HealthStream (NASDAQ:HSTM) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

HealthStream (NASDAQ:HSTM) posted its earnings results on Monday. The technology company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.02, FiscalAI reports. HealthStream had a return on equity of 6.58% and a net margin of 6.25%. The company had revenue of $83.31 million for the quarter, compared to analyst estimates of $82.24 million.

HealthStream Stock Performance

HSTM stock opened at $32.02 on Wednesday. The firm has a market cap of $935.48 million, a P/E ratio of 45.74, a price-to-earnings-growth ratio of 4.00 and a beta of 0.45. HealthStream has a 1 year low of $19.50 and a 1 year high of $35.60. The stock has a 50-day simple moving average of $31.11 and a 200-day simple moving average of $25.70.

HealthStream Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Monday, November 16th will be issued a $0.0350 dividend. This represents a $0.14 annualized dividend and a yield of 0.4%. The ex-dividend date is Monday, November 16th. HealthStream’s dividend payout ratio is currently 19.44%.

Key HealthStream News

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: Q3 revenue rose 8.9% year over year to $83.3 million, beating estimates, while EPS of $0.18 also topped consensus. The company forecast 2026 revenue of $331 million–$333 million, above the analyst consensus cited in reports. HealthStream Announces Third Quarter 2026 Results
• Neutral Sentiment: HealthStream declared a quarterly dividend of $0.035 per share, equivalent to $0.14 annually and a yield of about 0.4%; the modest payout is unlikely to materially change the investment outlook. HealthStream declares $0.035 dividend
• Negative Sentiment: Despite the earnings beat, operating income declined 13% to $6.6 million and net income fell 11.7% to $5.4 million year over year. The profit declines point to margin pressure and appear to be weighing on the market’s response to the quarter. HealthStream Stock Drops After Q3 Earnings Margin Squeeze
• Negative Sentiment: Craig-Hallum downgraded HSTM from Buy to Hold, citing its high valuation. Although the firm’s $40 price target remains above the quoted share price, the rating change adds a cautious signal. HealthStream downgraded at Craig-Hallum on high valuation

Analyst Ratings Changes

Several research analysts recently issued reports on HSTM shares. Craig Hallum downgraded HealthStream from a “buy” rating to a “hold” rating and set a $40.00 price objective for the company. in a research report on Tuesday. Canaccord Genuity Group increased their target price on HealthStream from $24.00 to $27.00 and gave the company a “hold” rating in a report on Tuesday, July 21st. Freedom Capital raised HealthStream to a “hold” rating in a research report on Tuesday, October 13th. Weiss Ratings raised HealthStream from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Finally, Wall Street Zen raised HealthStream from a “hold” rating to a “buy” rating in a report on Saturday. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, HealthStream presently has a consensus rating of “Hold” and a consensus price target of $33.50.

Insider Activity at HealthStream

In other HealthStream news, Director Linda Rebrovick sold 12,000 shares of the company’s stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $35.00, for a total value of $420,000.00. Following the completion of the transaction, the director owned 39,329 shares in the company, valued at $1,376,515. This represents a 23.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Frist, Jr. sold 144,068 shares of HealthStream stock in a transaction on Monday, September 14th. The stock was sold at an average price of $29.50, for a total transaction of $4,250,006.00. Following the sale, the chief executive officer directly owned 3,907,038 shares in the company, valued at $115,257,621. This trade represents a 3.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 20.40% of the company’s stock.

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.