Waystar (NASDAQ:WAY) Shares Gap Down – Here’s Why

Waystar Holding Corp. (NASDAQ:WAY)’s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $28.14, but opened at $25.43. Waystar shares last traded at $26.7460, with a volume of 411,770 shares trading hands.

Key Waystar News

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Waystar reported third-quarter revenue of $325.6 million, up 21% from a year earlier, while non-GAAP EPS of $0.44 exceeded the $0.41 consensus estimate. Adjusted EBITDA margin was 43%, and net income reached $31.0 million. Waystar Reports Third Quarter 2026 Results
• Positive Sentiment: Canaccord Genuity raised its price target from $33 to $34 and assigned a Buy rating, indicating analyst confidence in Waystar’s longer-term growth prospects. Canaccord Genuity Group recommendations
• Neutral Sentiment: Management provided fiscal 2026 EPS guidance of $1.63-$1.71, with the low end matching consensus, and revenue guidance of approximately $1.3 billion, also broadly in line with expectations.
• Positive Sentiment: Separate coverage indicated that Waystar raised its adjusted EBITDA outlook to approximately $543 million-$549 million, suggesting continued operating leverage despite the more measured revenue outlook. Waystar forecasts revenue and adjusted EBITDA outlook
• Negative Sentiment: The full-year forecast did not clearly exceed Wall Street expectations; reported revenue guidance of $1.277 billion-$1.287 billion in some coverage was below the approximately $1.3 billion consensus figure. That limited guidance upside may have prompted profit-taking even after the quarterly beat. Waystar third-quarter earnings results

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Royal Bank Of Canada reissued an “outperform” rating on shares of Waystar in a report on Tuesday, September 15th. KeyCorp lifted their target price on Waystar from $30.00 to $35.00 and gave the company an “overweight” rating in a research note on Friday, October 16th. Wolfe Research raised Waystar to an “outperform” rating in a research note on Thursday, August 13th. Needham & Company LLC reiterated a “buy” rating and set a $33.00 price target on shares of Waystar in a research report on Wednesday, August 26th. Finally, Canaccord Genuity Group increased their price target on Waystar from $33.00 to $34.00 and gave the stock a “buy” rating in a research note on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Waystar has an average rating of “Moderate Buy” and an average target price of $34.95.

Waystar Stock Down 2.4%

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.85 and a current ratio of 1.85. The stock has a 50 day moving average price of $26.23 and a 200 day moving average price of $23.97. The company has a market cap of $5.27 billion, a P/E ratio of 39.09, a P/E/G ratio of 1.13 and a beta of 0.18.

Waystar (NASDAQ:WAY) last announced its earnings results on Monday, November 2nd. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.03. Waystar had a return on equity of 7.03% and a net margin of 11.18%. The business had revenue of $325.62 million during the quarter, compared to analysts’ expectations of $323.43 million. During the same quarter last year, the business posted $0.37 earnings per share. The company’s quarterly revenue was up 21.2% on a year-over-year basis. Research analysts expect that Waystar Holding Corp. will post 1.47 earnings per share for the current fiscal year.

Insider Buying and Selling at Waystar

In related news, CEO Matthew Hawkins sold 82,500 shares of Waystar stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $26.23, for a total value of $2,163,975.00. Following the transaction, the chief executive officer owned 1,804,794 shares of the company’s stock, valued at approximately $47,339,746.62. This trade represents a 4.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 247,500 shares of company stock valued at $6,370,499. Company insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Canada Pension Plan Investment Board acquired a new stake in shares of Waystar during the second quarter valued at approximately $390,593,000. BlackRock Inc. acquired a new position in Waystar in the 2nd quarter worth approximately $357,950,000. Advent International L.P. acquired a new position in Waystar in the 2nd quarter worth approximately $227,060,000. Jupiter Topco LLC acquired a new position in Waystar in the 2nd quarter worth approximately $58,960,000. Finally, Bank of America Corp DE purchased a new position in Waystar during the 2nd quarter worth approximately $53,031,000.

About Waystar

Waystar Holding Corp. is a healthcare technology company that provides cloud-based software designed to simplify administrative and financial processes across the healthcare industry. Its platform connects healthcare providers, health plans and patients, helping organizations manage revenue cycle operations and improve the flow of information and payments.

The company’s products and services include electronic claims management, eligibility and benefits verification, prior authorization, payment integrity, denial management, patient estimates and payments, billing automation, and healthcare analytics.