Definitive Healthcare Corp. (NASDAQ: DH) stock fell -1.93% on Friday to $8.11 against a previous-day closing price of $8.27. With 0.86 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.66 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $8.28 whereas the lowest price it dropped to was $8.05. The 52-week range on DH shows that it touched its highest point at $20.14 and its lowest point at $8.10 during that stretch. It currently has a 1-year price target of $12.59. Beta for the stock currently stands at 0.75.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DH was down-trending over the past week, with a drop of -9.08%, but this was down by -18.90% over a month. Three-month performance dropped to -25.87% while six-month performance fell -28.55%. The stock lost -58.30% in the past year, while it has lost -26.21% so far this year. A look at the trailing 12-month EPS for DH yields -0.12 with Next year EPS estimates of 0.29. For the next quarter, that number is 0.06. This implies an EPS growth rate of 63.20% for this year and 17.14% for next year.
Float and Shares Shorts:
At present, 111.77 million DH shares are outstanding with a float of 46.53 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.4 million, which was 5.65% higher than short shares on Jul 30, 2023. In addition to Mr. Jason Ronald Krantz as the firm’s Founder & Exec. Chairman, Mr. Robert W. Musslewhite J.D. serves as its CEO & Director.
Through their ownership of 107.42% of DH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.88% of DH, in contrast to 29.11% held by mutual funds. Shares owned by individuals account for 19.92%. As the largest shareholder in DH with 4.81% of the stake, Conestoga Capital Advisors LLC holds 5,448,103 shares worth 5,448,103. A second-largest stockholder of DH, JPMorgan Investment Management, I, holds 4,712,478 shares, controlling over 4.16% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in DH, holding 3,992,451 shares or 3.52% stake. With a 2.69% stake in DH, the JPMorgan Small Cap Equity Fund is the largest stakeholder. A total of 3,047,525 shares are owned by the mutual fund manager. The Conestoga Small Cap Fund, which owns about 2.65% of DH stock, is the second-largest Mutual Fund holder. It holds 2,998,354 shares valued at 28.18 million. Baron Discovery Fund holds 2.37% of the stake in DH, owning 2,684,590 shares worth 25.24 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, DH reported revenue of $54.55M and operating income of -$9.11M. The EBITDA in the recently reported quarter was $10.67M and diluted EPS was -$0.06.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DH since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DH analysts setting a high price target of $15.50 and a low target of $10.00, the average target price over the next 12 months is $12.59. Based on these targets, DH could surge 91.12% to reach the target high and rise by 23.3% to reach the target low. Reaching the average price target will result in a growth of 55.24% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded DH stock several times over the past three months with 3 Buys and 6 Sells. In these transactions, 3,000,873 shares were bought while 6,130,852 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 10,559,645 while 17,538,589 shares were sold.