According to Bloomberg Ratings, shares of Definitive Healthcare Corp. (NASDAQ:DH) have received a consensus recommendation of “Moderate Buy” from eight analysts who are currently covering the stock. Of the eight analysts, four have given a hold recommendation while the remaining four have issued a buy recommendation for the company. The average 12-month price target provided by brokers who have updated their coverage on the stock in the past year is $12.69.
On Thursday, DH opened at $10.00. The company has experienced a 1-year low of $8.71 and a 1-year high of $22.62. With a market cap of $1.10 billion, DH has a price-to-earnings ratio of -66.67 and a price-to-earnings-growth ratio of 22.94, along with a beta value of 0.69. The fifty-day simple moving average stands at $10.99, whereas the two-hundred-day simple moving average also holds at $10.99. Additionally, DH boasts a current ratio and quick ratio of 2.96 each, as well as a debt-to-equity ratio of 0.17.
Definitive Healthcare Corp., along with its subsidiaries, offers software as a service (SaaS) healthcare commercial intelligence platform within the United States. Their SaaS platform delivers valuable information about healthcare providers and their activities to assist customers throughout various stages such as product development, go-to-market planning, and sales and marketing execution.
In terms of earnings performance, Definitive Healthcare (NASDAQ:DH) recently announced its quarterly results on August 14th. For this quarter, they reported an EPS (earnings per share) of $0.08, surpassing analysts’ consensus estimates by $0.03 per share ($0.05 estimated). Furthermore, their revenue for this period was recorded at $60.96 million, slightly lower than the analyst estimates of $61.00 million. Definitive Healthcare’s return on equity stood at 0.28%, while their net margin was negative at 5.31%. Despite this, the company experienced an 11.7% increase in revenue compared to the same quarter last year, during which they had earned ($0.01) EPS.
As a whole, research analysts predict that Definitive Healthcare will achieve an earnings per share of 0.02 for the current year.
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Mixed Opinions and Shifting Positions Surround Definitive Healthcare’s Future Prospects
In recent months, several brokerages have offered their commentary on Definitive Healthcare (DH), contributing to the ongoing discussion surrounding the company’s future prospects. Notably, Barclays lowered their price objective for DH from $11.00 to $10.00 in a report dated May 8th, whereas Morgan Stanley reduced their price target from $17.00 to $15.50 while maintaining an “overweight” rating for the company. It is worth mentioning that researchers at Needham & Company LLC also expressed optimism about DH, reiterating a “buy” rating and issuing a target price of $15.00.
Further contributing to this conundrum are the opinions of financial analysts from William Blair, who recently initiated coverage on DH with an “outperform” rating on April 19th. Lastly, Robert W. Baird downgraded shares of Definitive Healthcare from an “outperform” rating to a “neutral” rating and set a price target of $13.00 per share, adding another layer of uncertainty to the mix.
Meanwhile, institutional investors and hedge funds have been making notable changes to their positions in the stock as well. Brown Advisory Inc., for instance, acquired a new stake in DH during the first quarter of this year, which was reported to be valued at approximately $40.5 million.
Echo Street Capital Management LLC also increased its holdings in the company by an impressive 69.8% during the fourth quarter, meaning they now possess an estimated 5,751,074 shares of DH stock valued at around $63.2 million.
Similarly, Conestoga Capital Advisors LLC saw fit to boost its holdings in DH by 57.3% during the first quarter by acquiring an additional 1,988,939 shares—an investment amounting to around $56.4 million.
Notably, BlackRock Inc.—one of the world’s largest asset management firms—also demonstrated faith in Definitive Healthcare, increasing its holdings by 59.0% during the second quarter. They now own an estimated 3,722,599 shares worth approximately $40.9 million.
As the perplexing web of opinions and financial maneuvers continues to entangle Definitive Healthcare, it remains to be seen what impact these developments will have on the company’s trajectory in the increasingly competitive healthcare market. Only time will unravel this complex discussion further, and investors and analysts alike eagerly await new information that may shed light on DH’s future.