HSTM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
HealthStream Inc (HSTM) does not present a strong buy opportunity for a beginner, long-term investor at this time. While the company shows some positive developments like revenue growth and strategic acquisitions, the significant decline in net income, EPS, and gross margin, coupled with insider selling and neutral hedge fund sentiment, suggests caution. Additionally, there are no strong trading signals or recent congress trading data to support a buy decision.
The MACD histogram is positive at 0.257, indicating a bullish trend, but it is contracting. RSI is neutral at 58.515, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot point of 21.22, with resistance at 22.719 and support at 19.721.
The company completed two acquisitions to enhance service capabilities and initiated a $10 million share repurchase program. Dividend increased by 12.9%.
Net income dropped by 48.15% YoY, EPS declined by 43.75%, and gross margin decreased by 4.07%. Insider selling has increased by 146.37% over the last month. Analysts have lowered price targets twice in recent months, citing concerns about the healthcare environment and AI disintermediation.
In Q4 2025, revenue increased to $79.7 million (up 7.37% YoY), but net income dropped to $2.53 million (down 48.15% YoY). EPS fell to $0.09 (down 43.75% YoY), and gross margin decreased to 49.96% (down 4.07% YoY).
Canaccord has lowered the price target twice recently, from $28 to $25 in January 2026 and from $25 to $21 in February 2026, maintaining a Hold rating. Analysts have expressed concerns about the uncertain healthcare environment and AI disintermediation risks, though management has made a case for favorable positioning.
