Definitive Healthcare stock hits 52-week low at $2.54

Definitive Healthcare Corp. (NASDAQ:DH) shares tumbled to a 52-week low, touching down at $2.54, as market headwinds continue to challenge the healthcare analytics company. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.3, while technical indicators suggest the stock has entered oversold territory. This latest price level reflects a stark contrast to the stock’s performance over the past year, with Definitive Healthcare experiencing a significant 1-year change, plummeting by -67.46%. While the stock has shown high volatility, InvestingPro analysis suggests the shares are currently undervalued, with analysts expecting positive net income growth this year. Investors are closely monitoring the company’s strategic moves and market conditions to assess the potential for a rebound or further declines in the stock’s value. For deeper insights and 13 additional exclusive ProTips about DH, visit InvestingPro.

In other recent news, Definitive Healthcare Corp reported its fourth-quarter 2024 earnings, revealing a significant miss on earnings per share (EPS) expectations, with an actual EPS of -$0.51 compared to the forecasted $0.07. Despite this, the company’s revenue of $62.3 million slightly exceeded the forecast of $60.55 million, although it marked a 6% decline year-over-year. The company’s adjusted EBITDA margin was reported at 28%, and its unlevered free cash flow (uFCF) margin was slightly below expectations at -3%. In response to these results, Goldman Sachs analyst Kash Rangan adjusted the price target for Definitive Healthcare shares to $3.00 from $4.50, maintaining a Neutral rating. Looking ahead, Definitive Healthcare projects a revenue decline for fiscal year 2025, with anticipated revenue growth of -7% at the midpoint, contrasting with a consensus estimate of -4%. Additionally, the company announced a change in financial leadership, with Casey Heller set to replace Rick Booth as CFO in June. Despite these challenges, the company added 17 new Enterprise logos, reflecting its efforts to expand its customer base amidst economic headwinds.

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