Waystar (NASDAQ:WAY) Shares Gap Up – Here’s What Happened
by Doug Wharley · The Cerbat GemWaystar Holding Corp. (NASDAQ:WAY – Get Free Report)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $24.90, but opened at $27.03. Waystar shares last traded at $26.81, with a volume of 971,585 shares.
Waystar News Summary
Here are the key news stories impacting Waystar this week:
- Positive Sentiment: Waystar is reportedly evaluating a potential sale, according to Reuters sources. A transaction could attract private-equity or strategic buyers and potentially provide shareholders with a takeover premium. The reports come roughly two years after Waystar’s IPO and follow a significant stock decline, which may make the company more appealing to acquirers. Reuters report on Waystar exploring strategic options
- Positive Sentiment: Multiple reports of sale discussions drove strong buying and above-average volume, reflecting investor interest in the possibility of a take-private deal. Analysts cited Waystar’s healthcare software and payments operations as potentially attractive in a broader M&A process. Fierce Healthcare report on Waystar M&A appeal
- Neutral Sentiment: The potential transaction remains exploratory, with no announced buyer, valuation, or assurance that a sale will occur. Investors should therefore treat the takeover speculation as a catalyst rather than a completed corporate event. PYMNTS report on Waystar considering a sale
- Negative Sentiment: Barclays downgraded Waystar from “Overweight” to “Equal Weight.” Although the firm raised its price target to $30 from $27, the downgrade signals less conviction in near-term outperformance and could limit gains if takeover speculation fades. Barclays downgrade of Waystar
- Negative Sentiment: Zacks said Waystar’s latest earnings-estimate revision trend does not indicate further strength, raising concerns about the stock’s fundamental momentum even after its recent rally. Zacks analysis of Waystar stock upside
Wall Street Analysts Forecast Growth
WAY has been the topic of a number of research analyst reports. Royal Bank Of Canada restated an “outperform” rating on shares of Waystar in a report on Tuesday. Truist Financial dropped their price objective on Waystar from $38.00 to $33.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Morgan Stanley reiterated an “equal weight” rating and issued a $28.00 price objective on shares of Waystar in a research report on Wednesday. BMO Capital Markets reissued an “outperform” rating on shares of Waystar in a research note on Thursday, August 27th. Finally, Wolfe Research upgraded Waystar to an “outperform” rating in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $35.27.
Check Out Our Latest Research Report on WAY
Waystar Price Performance
The company has a market cap of $5.10 billion, a PE ratio of 37.99, a PEG ratio of 1.04 and a beta of 0.16. The firm’s 50-day moving average is $23.94 and its 200-day moving average is $22.77. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.36.
Waystar (NASDAQ:WAY – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.40 by $0.03. The business had revenue of $319.67 million during the quarter, compared to analyst estimates of $316.21 million. Waystar had a net margin of 11.18% and a return on equity of 7.03%. Waystar’s quarterly revenue was up 18.1% compared to the same quarter last year. During the same period last year, the business posted $0.36 earnings per share. On average, equities analysts anticipate that Waystar Holding Corp. will post 1.47 EPS for the current year.
Insider Activity at Waystar
In related news, CEO Matthew Hawkins sold 82,500 shares of Waystar stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $25.97, for a total transaction of $2,142,525.00. Following the sale, the chief executive officer directly owned 1,804,794 shares in the company, valued at $46,870,500.18. The trade was a 4.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 165,000 shares of company stock valued at $4,206,524. Company insiders own 3.50% of the company’s stock.
Hedge Funds Weigh In On Waystar
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. ProShare Advisors LLC increased its holdings in shares of Waystar by 3.7% during the fourth quarter. ProShare Advisors LLC now owns 21,474 shares of the company’s stock valued at $703,000 after acquiring an additional 764 shares in the last quarter. Root Financial Partners LLC boosted its stake in Waystar by 6,475.0% in the 1st quarter. Root Financial Partners LLC now owns 1,052 shares of the company’s stock worth $25,000 after purchasing an additional 1,036 shares in the last quarter. Cetera Investment Advisers grew its position in Waystar by 10.0% during the 1st quarter. Cetera Investment Advisers now owns 12,294 shares of the company’s stock valued at $296,000 after purchasing an additional 1,121 shares during the last quarter. Swiss National Bank grew its position in Waystar by 0.5% during the 1st quarter. Swiss National Bank now owns 227,100 shares of the company’s stock valued at $5,475,000 after purchasing an additional 1,200 shares during the last quarter. Finally, Essential Partners LLC increased its stake in Waystar by 1,432.7% during the 1st quarter. Essential Partners LLC now owns 1,548 shares of the company’s stock valued at $37,000 after purchasing an additional 1,447 shares in the last quarter.
Waystar Company Profile
Waystar Holding Corp. is a healthcare payments technology company that provides cloud-based software for managing administrative and financial processes across the healthcare system. Its platform connects healthcare providers, health plans and patients, helping organizations simplify complex transactions and improve the efficiency of the revenue cycle.
The company’s products and services include patient eligibility and coverage verification, claims management and submission, payment processing, prior authorization, denial and appeal management, patient billing, and related workflow automation.