Insider Buying

Health Catalyst (HCAT:US) sees buying from several insiders in August

Health Catalyst Inc
(HCAT:US)
12 months:
-77.70%
Activity:
Bullish
Pattern:
Purchase from two insiders including CEO
News:
Q2 results
Health Catalyst Inc
(HCAT:US)
12 months:
-77.70%
Activity:
Bullish
Pattern:
Purchase from two insiders including CEO
News:
Q2 results
The image's background shows a Stethoscope and Laptop Computer, with the blog introduction mentioning the 2 insiders' $30K investment on top.

Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company, and its prospects, than its executives and directors.

In this report, we are going to highlight some interesting insider buying at Health Catalyst (HCAT:US). Health Catalyst is a leading provider of data and analytics technology and services to healthcare organizations. Its offerings include a cloud-based data platform, analytics software, and professional services expertise. The company is listed on the Nasdaq and currently has a market cap of $641 million.

Insider buying at Health Catalyst

Our data shows that in August, two insiders at Health Catalyst have purchased stock. On August 9, CEO Dan Burton picked up 176,522 shares at a price of $11.62 per share. This trade cost the insider $2.1 million.

Then, between August 18 and August 19, board member Duncan Gallagher bought 15,000 shares at an average price of $11.66 per share. This trading activity cost the insider approximately $175,000.

Large CEO purchase

It’s the large purchase from CEO Dan Burton that stands out here. Mr. Burton has been involved with Health Catalyst since it was a three-person start-up and has been a driving force behind the company’s evolution from a small start-up to a publicly-traded company. He is also the co-founder of HB Ventures, the first outside equity holder in Health Catalyst. So, he is likely to have an excellent understanding of the company’s prospects.

However, the smaller purchase from Mr. Gallagher also looks interesting. Mr. Gallahger has over 30 years of experience as an integrated health system CFO and senior management leader. Previously, he served as CFO at Allina Health, where he was instrumental in outsourcing its $10 million, 70 FTE analytics department through a unique partnership with Health Catalyst. So, he is likely to have a good understanding of the company’s potential too.

Confidence in the future

Health Catalyst recently posted a solid set of Q2 results.

For the period, technology revenue was up 28% to $44.4 million while total revenue was up 18% to $70.6 million. Adjusted EBITDA was up 20% to $2.0 million.

On the downside, the group did lower its guidance for the full year due to the challenging market environment. However, it advised that while near-term growth is being impacted by the macro-economic pressure on its end market, it is confident in its ability to drive meaningful, positive adjusted EBITDA leverage in 2023 and beyond.

It’s worth noting that the group also announced a $40 million share repurchase program after the Q2 results. “This share repurchase program demonstrates our confidence in the future of our business and our commitment to creating long-term, sustainable value for our shareholders, our customers and our team members,” said Mr. Burton. “We believe the current market does not reflect the long-term value of our shares of common stock and this share repurchase program will allow us to unlock more of the long-term value and opportunity we see ahead,” he added.

Putting this all together, we see the insider buying here as a bullish indicator.

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