Health Catalyst buys back $5 million in stock

SALT LAKE CITY - Health Catalyst, Inc. (NASDAQ:HCAT), a prominent data and analytics technology provider to healthcare organizations, has completed the repurchase of approximately $5 million worth of its common stock at current trading levels near $3.97 per share. The buyback, part of a previously approved program, involved the retirement of around 1.1 million shares, the company announced on Tuesday. The stock has declined over 53% in the past year, trading close to its 52-week low of $3.76.

The repurchase activity took place over the past week, from March 3 to March 10, 2025, under the share repurchase program that Health Catalyst’s board of directors initiated on August 2, 2022. The program authorizes the company to buy back up to $40 million of its common stock.

Dan Burton, CEO of Health Catalyst, expressed the company’s belief that the current market valuation does not accurately reflect the long-term value of its shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with analysts setting price targets ranging from $5 to $16. Burton cited the company’s expectations for continued operating leverage and revenue growth acceleration as reasons for the repurchase, with revenue growing at 3.6% and maintaining a healthy gross margin of 46.25%. Burton emphasized the move as a demonstration of Health Catalyst’s commitment to generating sustainable value for shareholders, clients, and team members.

Health Catalyst specializes in providing a range of data and analytics services designed to improve clinical, financial, and operational outcomes in healthcare. The company’s technology ecosystem, Health Catalyst Ignite™, and its AI-enabled solutions are utilized by over a thousand organizations globally, generating annual revenue of $306.58 million. InvestingPro analysis reveals multiple growth indicators, including expected profitability this year, despite current challenging market conditions. For deeper insights into Health Catalyst’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

This press release also contains forward-looking statements regarding the company’s future performance and market opportunities, which involve certain risks and uncertainties that could cause actual results to differ materially. Factors that may influence Health Catalyst’s performance include changes in laws and regulations, market conditions, litigation outcomes, client retention, macroeconomic challenges, public health crises, and the company’s ability to attract and retain qualified staff.

The information presented in this article is based on a press release statement from Health Catalyst.

In other recent news, Health Catalyst Inc. reported its financial results for the fourth quarter of 2024, revealing a notable earnings miss with an EPS of -$0.33 compared to the forecast of $0.07. The company’s revenue for the quarter was slightly below expectations at $79.6 million, against an anticipated $80.68 million. Despite these setbacks, Health Catalyst experienced a 6% year-over-year increase in fourth-quarter revenue, driven by a 10% growth in technology revenue. For the full year 2024, total revenue grew by 4% to $370 million, with adjusted EBITDA increasing by 137% to $26 million.

Health Catalyst reaffirmed its fiscal year 2025 guidance, projecting revenue of approximately $335 million, slightly below consensus estimates, and a raised EBITDA forecast of $41 million. BTIG analysts recently adjusted their price target for Health Catalyst shares to $10 from $13 while maintaining a Buy rating, following the company’s earnings report. The company is focusing on transitioning clients to its Ignite platform, which is expected to improve operational efficiencies and technology revenue growth by 13% in 2025. Additionally, Health Catalyst’s acquisition of UPFRONT Healthcare has been finalized, contributing to the company’s strategic expansion efforts.

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