Phreesia Reports Significant Drop in Short Interest for December

Phreesia, Inc. (NYSE: PHR) experienced a notable decrease in short interest during December 2023. As of December 15, the total short interest fell to 2,427,866 shares, representing a decline of 30.2% from the November 30 total of 3,479,944 shares. Currently, short sales account for approximately 4.3% of the company’s total shares, with a short-interest ratio calculated at 0.9 days based on an average daily volume of 2,620,410 shares.

Analyst Ratings and Market Performance

Several analysts have recently updated their ratings on Phreesia. JMP Securities raised its price target from $30.00 to $34.00, maintaining a “market outperform” rating on September 8. In contrast, Canaccord Genuity Group reduced its price target from $38.00 to $33.00 while keeping a “buy” rating in a report dated December 9.

Stephens reaffirmed an “overweight” rating with a target price of $32.00 on September 3. KeyCorp also adjusted its price objective, lowering it from $35.00 to $32.00 on October 8. In addition, Truist Financial set a target price of $29.00 on December 10. According to MarketBeat, Phreesia has an average rating of “Moderate Buy,” with a consensus target price of $31.00 among analysts.

Phreesia reported its quarterly earnings on December 8, showing an earnings per share (EPS) of $0.10, exceeding the consensus estimate of a loss of $0.01 by $0.11. Total revenue for the quarter reached $120.33 million, surpassing analyst expectations of $119.98 million. Despite these positive figures, the company recorded a negative net margin of 1.16% and a negative return on equity of 1.31%, although revenue increased by 12.7% year-over-year.

Insider Activity and Institutional Holdings

In recent insider transactions, David Linetsky sold 2,059 shares on October 17 at an average price of $22.36, totaling approximately $46,039.24. Following this sale, Linetsky’s holdings decreased by 1.18%, leaving him with 171,829 shares valued at $3,842,096.44. Similarly, Evan Roberts sold 1,888 shares on the same day, resulting in a total transaction of around $42,215.68. After this transaction, Roberts owned 724,949 shares, valued at approximately $16,209,859.64, reflecting a 0.26% reduction in his ownership.

Overall, insiders sold 7,534 shares valued at $165,514 in the last quarter. Currently, insiders hold 5.50% of Phreesia’s stock.

Institutional investors also made significant adjustments to their positions in Phreesia. Federated Hermes Inc. acquired a new stake valued at $32,000 during the third quarter. Asset Management One Co. Ltd. purchased shares worth approximately $45,000, while the State of Alaska Department of Revenue acquired $83,000 in shares. Farther Finance Advisors LLC dramatically increased its stake by 9,375.0%, now owning 3,032 shares valued at $86,000. Anchor Investment Management LLC also acquired a new stake worth around $118,000. Institutional investors currently hold 92.10% of Phreesia’s stock.

Founded in 2000 and headquartered in Burlington, Massachusetts, Phreesia provides patient intake management solutions aimed at enhancing healthcare organizations’ front-office workflows. The company’s cloud-based platform digitizes various processes, including patient registration and appointment scheduling, thereby improving data accuracy and the overall patient experience.