Health Catalyst stock hits 52-week low at $3.56 amid market challenges

In a turbulent market environment, Health Catalyst Inc. (NASDAQ:HCAT) stock has reached a 52-week low, touching down at $3.56, with InvestingPro analysis indicating the stock is currently undervalued. The company’s market capitalization stands at $253 million, with the stock showing a significant beta of 1.44, indicating higher volatility than the broader market. The healthcare data and analytics company has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -36.71%. While the company maintains a moderate debt level and healthy current ratio of 1.43, investors have shown concern as the stock struggles to regain momentum amidst a broader industry downturn. The current price level marks a critical juncture for Health Catalyst, as market watchers and stakeholders closely monitor the company’s performance and strategic responses to these challenging market conditions. According to InvestingPro data, analysts expect the company to return to profitability this year, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.

In other recent news, Health Catalyst Inc. has made several significant announcements and strategic moves. The company reported fourth-quarter revenue of $79.6 million, marking a 6% year-over-year increase, which closely matched analyst estimates. However, its service adjusted gross margin fell short of expectations, reported at 13.5% compared to the anticipated 18.5%. Health Catalyst has been phasing out lower-margin ambulatory Technology-Enabled Management Services (TEMS) agreements, which is expected to improve margins over time. Additionally, the company reaffirmed its revenue guidance for fiscal year 2025 at approximately $335 million, slightly below consensus estimates, while adjusting its EBITDA guidance to $41 million.

On the analyst front, Cantor Fitzgerald maintained an Overweight rating on Health Catalyst, citing the company’s potential to double its bookings by 2025. In contrast, Evercore ISI downgraded the stock to In Line, expressing concerns over potential headwinds affecting revenue and EBITDA projections. William Blair reiterated an Outperform rating, highlighting the company’s Ignite data and analytics platform as a positive factor. Meanwhile, Health Catalyst completed a $5 million stock buyback, reflecting its belief in the long-term value of its shares. BTIG adjusted its price target to $10 while maintaining a Buy rating, noting the company’s progress in earnings and strategic initiatives.

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