Waystar Shares Downgraded by Zacks: Analyst Ratings Shift

Zacks Research has downgraded shares of Waystar (NASDAQ:WAY) from a strong-buy rating to a hold rating in a report released on Thursday, signaling a shift in analyst sentiment regarding the company’s stock. This change comes as various other equity research firms have recently updated their assessments of Waystar, indicating a more cautious outlook in the market.

In a report published on September 5, Robert W. Baird began coverage on Waystar with an “outperform” rating, setting a price target of $44.00. Following closely, Weiss Ratings reiterated a “hold (c)” rating on October 8. In a more optimistic move, Citigroup raised its price target for Waystar from $47.00 to $49.00, while maintaining a “buy” rating as of October 31. Similarly, Mizuho increased its price objective from $48.00 to $50.00, labeling the stock as “outperform” in a report dated October 30. JMP Securities also initiated coverage on September 18, setting a “market outperform” rating with a price target of $48.00.

The consensus among analysts reflects a predominantly positive outlook for Waystar, with two analysts recommending a strong buy, thirteen suggesting a buy, and two advising a hold. According to data from MarketBeat, the average rating for Waystar’s stock is “Buy,” with an estimated average target price of $47.57.

Waystar’s Recent Stock Performance

On Thursday, shares of Waystar opened at $31.37. Over the past year, the stock has seen a low of $29.40 and a high of $48.11. The company boasts a market capitalization of $6.00 billion, with a price-to-earnings (P/E) ratio of 50.60 and a price-to-earnings-growth (PEG) ratio of 0.40. Waystar’s current and quick ratios stand at 3.89, while its debt-to-equity ratio is 0.38. The company’s 50-day moving average is $34.80, and the 200-day moving average is $36.45.

Insider Transactions and Institutional Holdings

Recent insider trading activity has also drawn attention. On December 22, Eric L. (Ric) Sinclair III, an insider, sold 9,701 shares at an average price of $32.82, amounting to a total of $318,386.82. Following this transaction, Sinclair holds 474,826 shares valued at approximately $15,583,789.32, marking a 2.00% reduction in ownership. Another notable insider, Christopher L. Schremser, the Chief Technology Officer, sold 8,623 shares on December 10 for about $262,225.43, resulting in a similar decrease in ownership.

In the last quarter, insiders collectively sold 58,372 shares worth $2,030,623, with corporate insiders currently owning 4.10% of Waystar’s stock.

Several institutional investors have also adjusted their positions in Waystar. Vanguard Group Inc. increased its stake in the company by 35.5% during the third quarter, now holding 12,289,810 shares valued at $466,030,000. AllianceBernstein L.P. significantly lifted its stake by 3,883.4% in the second quarter, acquiring an additional 3,186,869 shares worth $133,601,000. Other firms, such as Artisan Partners Limited Partnership and Alyeska Investment Group L.P., also made substantial investments during the same period.

About Waystar

Waystar (NASDAQ:WAY) specializes in providing cloud-based revenue cycle management and payment solutions for healthcare organizations. Its integrated platform simplifies the financial processes involved in patient care, from eligibility verification and claim submission to payment reconciliation and patient billing. By automating essential functions and enhancing claim accuracy, Waystar aims to assist healthcare providers in decreasing administrative burdens while improving cash flow and overall revenue performance. The company’s SaaS-based architecture integrates smoothly with existing electronic health record (EHR) systems and payer networks, positioning it as a leader in its field.