Phreesia (NYSE:PHR) Shares Gap Down Following Analyst Downgrade

Shares of Phreesia, Inc. (NYSE:PHR) gapped down before the market opened on Wednesday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $9.17, but opened at $8.84. Wells Fargo & Company now has a $9.00 price target on the stock. Phreesia shares last traded at $8.7870, with a volume of 367,992 shares changing hands.

PHR has been the subject of a number of other research reports. JPMorgan Chase & Co. reissued a “neutral” rating and set a $16.00 target price (down from $24.00) on shares of Phreesia in a research report on Tuesday, March 31st. KeyCorp reduced their price target on Phreesia from $15.00 to $12.00 and set an “overweight” rating on the stock in a research report on Monday, April 13th. Citigroup reissued a “neutral” rating and issued a $10.00 price objective (down from $25.00) on shares of Phreesia in a research report on Tuesday, March 31st. DA Davidson dropped their target price on Phreesia from $35.00 to $30.00 and set a “buy” rating on the stock in a research note on Friday, January 23rd. Finally, Canaccord Genuity Group reduced their target price on Phreesia from $33.00 to $22.00 and set a “buy” rating on the stock in a research report on Tuesday, March 31st. Ten research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $19.06.

Insider Activity at Phreesia

In other Phreesia news, insider Yvonne Hui sold 10,063 shares of the firm’s stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $9.08, for a total value of $91,372.04. Following the completion of the transaction, the insider owned 25,991 shares of the company’s stock, valued at approximately $235,998.28. This trade represents a 27.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Allison C. Hoffman sold 14,483 shares of the business’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $8.07, for a total transaction of $116,877.81. Following the sale, the general counsel directly owned 163,485 shares in the company, valued at $1,319,323.95. This trade represents a 8.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 50,493 shares of company stock worth $461,983. 5.50% of the stock is owned by company insiders.

Phreesia News Summary

Here are the key news stories impacting Phreesia this week:

• Negative Sentiment: Multiple law firms announced or promoted securities-fraud class-action lawsuits against Phreesia, increasing legal uncertainty and potential settlement costs. Article Title
• Negative Sentiment: Wells Fargo downgraded Phreesia from strong-buy to hold and cut its price target to $9, reinforcing a more cautious view on the stock’s outlook. Article Title
• Neutral Sentiment: Zacks highlighted Wall Street’s expected metrics ahead of Phreesia’s upcoming quarterly results, but the piece did not include a new company-specific catalyst. Article Title

Institutional Investors Weigh In On Phreesia

A number of institutional investors and hedge funds have recently modified their holdings of PHR. Pale Fire Capital SE acquired a new stake in Phreesia during the 1st quarter valued at approximately $72,481,000. Granahan Investment Management LLC lifted its position in Phreesia by 73.8% during the fourth quarter. Granahan Investment Management LLC now owns 2,399,613 shares of the company’s stock valued at $40,601,000 after purchasing an additional 1,018,987 shares during the period. Prosight Management LP purchased a new stake in Phreesia in the fourth quarter valued at $16,533,000. Millennium Management LLC boosted its holdings in Phreesia by 730.7% in the third quarter. Millennium Management LLC now owns 1,064,132 shares of the company’s stock valued at $25,028,000 after purchasing an additional 936,033 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in Phreesia during the 4th quarter worth about $15,213,000. Institutional investors and hedge funds own 92.10% of the company’s stock.

Phreesia Price Performance

The firm has a market cap of $542.34 million, a PE ratio of 292.67 and a beta of 0.89. The stock has a 50 day simple moving average of $9.70 and a two-hundred day simple moving average of $14.07. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.53 and a current ratio of 1.53.

Phreesia (NYSE:PHR) last posted its earnings results on Monday, March 30th. The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.05). The company had revenue of $127.07 million for the quarter, compared to analyst estimates of $126.75 million. Phreesia had a return on equity of 3.23% and a net margin of 0.48%.The firm’s revenue was up 15.9% on a year-over-year basis. During the same period last year, the business earned ($0.11) earnings per share. Sell-side analysts expect that Phreesia, Inc. will post 0.28 earnings per share for the current year.

Phreesia Company Profile

Phreesia, Inc (NYSE: PHR) is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company’s cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.