Why Health Catalyst (HCAT) Stock Is Trading Up Today

Anthony Lee /
2023/04/04 3:46 pm EDT

What Happened:

Shares of healthcare software provider Health Catalyst (NASDAQ:HCAT) jumped 8.95% today after analyst Stan Berenshteyn of Wells Fargo upgraded the stock's rating from Equal-Weight (Hold) to Overweight (Buy) and raised the price target from $13 to $16. The target price implies a 30% upside to the current price. After the initial pop the shares cooled down to $12.4, up 4.85% from previous close.

What is the market telling us:

Health Catalyst's shares are very volatile and over the last year have had 60 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

Health Catalyst is up 19.7% since the beginning of the year, but at $12.435 per share it is still trading 54.4% below its 52-week high of $27.26 from April 2022. Investors who bought $1,000 worth of Health Catalyst's shares at the IPO in July 2019 would now be looking at an investment worth $317.59.

Is now the time to buy Health Catalyst? Access our full analysis of the earnings results here, it's free.