Phreesia (NYSE:PHR) Shares Gap Down – Time to Sell?

Shares of Phreesia, Inc. (NYSE:PHR) gapped down before the market opened on Wednesday . The stock had previously closed at $9.17, but opened at $8.84. Phreesia shares last traded at $8.7870, with a volume of 367,992 shares changing hands.

Key Headlines Impacting Phreesia

Here are the key news stories impacting Phreesia this week:

• Negative Sentiment: Multiple law firms are publicizing a class action lawsuit against Phreesia, increasing legal uncertainty and potentially pressuring sentiment. Article Title
• Negative Sentiment: The allegations focus on possible misstatements about growth durability and the AccessOne acquisition, which could raise concerns about management credibility. Article Title
• Neutral Sentiment: Several firms are reminding investors of upcoming lead-plaintiff deadlines, but these notices mainly reinforce the already-known litigation overhang. Article Title

Analyst Ratings Changes

PHR has been the subject of a number of analyst reports. BMO Capital Markets reduced their price objective on shares of Phreesia from $32.00 to $14.00 and set an “outperform” rating for the company in a research note on Tuesday, March 31st. DA Davidson reduced their price objective on shares of Phreesia from $35.00 to $30.00 and set a “buy” rating for the company in a research note on Friday, January 23rd. Citizens Jmp reiterated a “market perform” rating on shares of Phreesia in a report on Wednesday, April 1st. Barclays reiterated an “equal weight” rating and issued a $10.00 target price (down from $24.00) on shares of Phreesia in a report on Thursday, May 14th. Finally, Canaccord Genuity Group dropped their target price on Phreesia from $33.00 to $22.00 and set a “buy” rating on the stock in a report on Tuesday, March 31st. Ten analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $19.06.

Phreesia Stock Down 3.5%

The company has a market cap of $546.39 million, a price-to-earnings ratio of 294.50 and a beta of 0.89. The company has a current ratio of 1.53, a quick ratio of 1.53 and a debt-to-equity ratio of 0.41. The business has a fifty day moving average price of $9.82 and a two-hundred day moving average price of $14.27.

Phreesia (NYSE:PHR) last issued its earnings results on Monday, March 30th. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.05). The business had revenue of $127.07 million during the quarter, compared to analyst estimates of $126.75 million. Phreesia had a net margin of 0.48% and a return on equity of 3.23%. Phreesia’s revenue for the quarter was up 15.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.11) EPS. On average, equities analysts predict that Phreesia, Inc. will post 0.28 earnings per share for the current year.

Insider Transactions at Phreesia

In related news, insider David Linetsky sold 8,332 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $8.07, for a total value of $67,239.24. Following the transaction, the insider owned 224,056 shares in the company, valued at approximately $1,808,131.92. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Allison C. Hoffman sold 14,483 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $8.07, for a total value of $116,877.81. Following the completion of the transaction, the general counsel owned 163,485 shares in the company, valued at $1,319,323.95. This represents a 8.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 50,493 shares of company stock worth $461,983. Corporate insiders own 5.50% of the company’s stock.

Institutional Investors Weigh In On Phreesia

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Phreesia by 8.3% during the third quarter. Vanguard Group Inc. now owns 5,704,786 shares of the company’s stock worth $134,177,000 after purchasing an additional 437,462 shares during the period. New York State Common Retirement Fund boosted its position in Phreesia by 727.1% during the third quarter. New York State Common Retirement Fund now owns 136,856 shares of the company’s stock worth $3,219,000 after purchasing an additional 120,309 shares during the period. Greenhouse Funds LLLP boosted its position in Phreesia by 16.8% during the third quarter. Greenhouse Funds LLLP now owns 3,882,527 shares of the company’s stock worth $91,317,000 after purchasing an additional 557,265 shares during the period. Bessemer Group Inc. boosted its position in Phreesia by 1,065.9% during the third quarter. Bessemer Group Inc. now owns 554,513 shares of the company’s stock worth $13,043,000 after purchasing an additional 506,954 shares during the period. Finally, SG Americas Securities LLC bought a new stake in Phreesia during the fourth quarter worth approximately $1,203,000. Institutional investors own 92.10% of the company’s stock.

About Phreesia

Phreesia, Inc (NYSE: PHR) is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company’s cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.