Definitive Healthcare (NASDAQ: DH) received a significant boost as research analysts at William Blair upgraded the company to a “strong-buy” rating in a report released on November 6, 2023. This upgrade reflects growing confidence in the company’s performance amidst various market assessments.
In addition to William Blair’s new rating, several other financial institutions have recently evaluated Definitive Healthcare’s stock. On August 8, Stifel Nicolaus adjusted its price target for the company from $5.00 to $6.00 while maintaining a “buy” rating. On the same day, Robert W. Baird set a target price of $4.00 for the stock. Contrastingly, Weiss Ratings reaffirmed a “sell (d-)” rating in an October report. Currently, one analyst has assigned a “strong-buy” rating, one has given a “buy” rating, four have rated it as “hold,” and two have advised a “sell.” As per data from MarketBeat.com, Definitive Healthcare has a consensus rating of “hold” with an average target price of $4.28.
Quarterly Performance and Future Guidance
Definitive Healthcare reported its quarterly earnings on November 6, revealing an earnings per share (EPS) of $0.07, surpassing the consensus estimate of $0.06 by $0.01. The company generated $60.05 million in revenue for the quarter, exceeding expectations of $59.51 million. Despite these positive figures, the company recorded a negative net margin of 77.88% and a modest return on equity of 3.14%.
Looking ahead, Definitive Healthcare has provided guidance for fiscal year 2025, projecting an EPS range of $0.230 to $0.240, with fourth-quarter guidance set between $0.050 and $0.060 EPS. Analysts estimate that the company will achieve an EPS of $0.16 for the current fiscal year.
Investor Activity and Institutional Holdings
Recent trading activity reveals that several large investors have either increased or initiated stakes in Definitive Healthcare. Notably, Goldman Sachs Group Inc. significantly boosted its holdings by 564.2% during the first quarter, acquiring an additional 7,404,363 shares, bringing its total to 8,716,725 shares valued at approximately $25.2 million. Other institutional investors, such as Arrowstreet Capital Limited Partnership and Whetstone Capital Advisors LLC, also entered new positions, reflecting a growing interest in the company.
Currently, institutional investors and hedge funds own 98.67% of Definitive Healthcare’s stock, indicating strong institutional confidence in the company’s prospects.
Definitive Healthcare Corp. specializes in providing a software-as-a-service (SaaS) healthcare commercial intelligence platform both in the United States and internationally. The platform offers valuable insights into healthcare providers and their activities, assisting clients in various areas from product development to market execution.
With the recent upgrade from William Blair and positive quarterly earnings, Definitive Healthcare appears well-positioned for potential growth in the competitive healthcare landscape.
