On Friday, June 3rd, research analysts at Robert W. Baird issued a research note on Phreesia (NYSE:PHR), decreasing its price target from $41.00 to $40.00. This new target price suggests a potential upside of 29.53% from the stock’s previous close. This comes just a few months after the company reported its quarterly earnings results on Wednesday, March 22nd.
Phreesia, Inc is a leading provider of patient check-in solutions for medical practices that offers appointments, clinical support, integration, registration, patient activation, analytics and reports, revenue cycle, patient surveys, and privacy and security products. Its solutions include health systems, multi-specialty care centers, and federally qualified health centers (FQHCs).
During the first quarter of this year (2023), Phreesia reported ($0.72) EPS for the quarter which surpassed analysts’ consensus estimates of ($0.78) by $0.06. Despite outperforming on EPS figures in Q1 2023 though, investors still eagerly await news about its Q2 performance results.
Although Phreesia had a negative return on equity of 50.94% and negative net margins of 53.89%, it recorded quarterly revenue that was up by over 32% compared to the same quarter last year. With plenty of momentum behind it coming into H2 2023 this newly adjusted price target could suggest that Robert W Baird are confident that Phreesia will continue to build upon its success – despite suffering from minor revenue dips in previous quarters.
Baird analyst Simon Frazier recently said: “We view PHR’s February strategic acquisitions positively as they further expand PHR’s addressable market while increasing component revenues per visit through PERC Health’s point-of-service payments offerings.” Investor enthusiasm has followed suit based on Baird’s suggestion towards these recent acquisitions.
In conclusion, while the extent of the pummeling Phreesia’s stock received is somewhat hard to quantify, investors are also reminded that this merely reflects an adjustment in Baird’s previous evaluations. With a wider swathe of data from H2 2023 forthcoming we’ll soon know if Phreesia and Baird’s bullishness were well-founded or not.
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Phreesia, Inc. Sees Mixed Reviews from Investment Analysts and Institutional Investors Amidst Healthcare Tech Market Growth
Phreesia, Inc., a provider of patient check-in solutions for medical practices, saw their stock open at $30.88 on Friday, June 3rd, with a 50-day moving average of $31.04 and a 200-day moving average of $32.42. The company has a market capitalization of $1.65 billion and has a PE ratio of -9.19, with a beta of 0.62. Phreesia’s portfolio includes analytics and reports, appointments, clinical support, integration, patient activation, patient surveys, privacy and security products and revenue cycle services for health systems such as multi-specialty clinics as well as federally qualified health centers (FQHCs).
Phreesia received noteworthy price target increases in its Q1 earnings report. Royal Bank of Canada increased its price target from $26 to $33 while JMP Securities increased theirs from $34 to $39. DA Davidson also raised their price target from $28 to $30; however KeyCorp dropped their price target from $45 to $40 instead. With this mix of ratings by investment analysts such as Stephens who assigned an “overweight” rating and gave the company a target price of $37 for the coming years coupled with KeyCorp’s less than impressed recent rating objectives along with two hold recommendations give some cause for investors to keep an eye on further reporting.
In Q2 news reported by the Securities Exchange Commission (SEC), Director Mark Douglas Smith completed two sales transactions back-to-back during early April that amounted to the sale of 7k shares worth over $215k outside normalized trading hours leaving him with more than 16k shares in the company valued at just under half a million dollars based on current share prices.
Lastly within institutional investment news several hedge funds followed by other institutional investors have recently altered investments within PHR both adding or reducing stakes in Phreesia recently around published Q1 earnings details. For example, FourThought Financial has increased its shares in Phreesia by 16.4% whereas Rockefeller Capital Management increased their stake by more than 600%, now with over four thousand shares since the end of Q3. As such, throughout this quarter thus far insiders have sold off around $834k worth of company stock equating to 5.80% of the entire company, leaving 92.23% distributed among hedge funds and long-term institutional investors.
As healthcare technology continues to be a buoyant market affording some relatively sound returns on investment for both investors and buyers alike, firms like Phreesia will need to pay close attention to regulatory frameworks alongside constant innovation so as to maintain steady profits where competitor markets are abundant with vibrant and fledgling rival businesses.
