Cantor Fitzgerald Downgrades Health Catalyst (HCAT) to "Neutral," Cuts Price Target by 55.56%

Cantor Fitzgerald downgraded Health Catalyst (HCAT) to "Neutral" from "Overweight," cutting the price target by 55.56% to $4.00. This follows recent evaluations from other analysts, including a "Hold" rating with a raised price target from Stifel and a "Buy" rating with a lower price target from Canaccord Genuity. The average analyst target price for HCAT is $6.67, with a high estimate of $10.00 and a low estimate of $3.00.

Cantor Fitzgerald has downgraded Health Catalyst (HCAT) to "Neutral" from "Overweight," reducing the price target from $9.00 to $4.00. This move comes amid a broader trend of analyst evaluations, with Stifel raising its price target to $5.50 while maintaining a "Hold" rating, and Canaccord Genuity lowering its price target to $9.00 while maintaining a "Buy" rating [2]. The average analyst target price for HCAT stands at $6.67, with estimates ranging from $3.00 to $10.00.

The downgrade from Cantor Fitzgerald is attributed to the company's worsening revenue outlook and multi-year headwinds, which the firm believes are too challenging to support growth at HCAT. This assessment aligns with recent market sentiment, as shares of HCAT fell 21.5% after the company reported second-quarter results that met expectations but slashed its full-year revenue forecast [2]. The stock has since traded at approximately $3.52, down 3.6% from its previous close, with institutional investors holding 85% of the company's stock [3].

Despite the recent downturn, HCAT has received a consensus recommendation of "Moderate Buy" from twelve analysts covering the firm, with five analysts rating the stock as a hold and seven assigning a buy recommendation [3]. However, the company's volatile stock price and recent insider trading activity, which saw six sales in the past six months, have raised concerns among investors [4].

Institutional investors have also shown interest in HCAT, with several hedge funds increasing their holdings in the fourth quarter. Group One Trading LLC grew its holdings by 107.6%, while Aquatic Capital Management LLC, Focus Partners Wealth, Divergent Planning LLC, and XTX Topco Ltd. all acquired new positions valued at approximately $63,000, $46,000, $45,000, and $54,000, respectively [3].

Health Catalyst's financial metrics, including a quick ratio of 1.24, a current ratio of 1.24, and a debt-to-equity ratio of 0.40, indicate a stable financial position. The company's market cap stands at $244.99 million, with a P/E ratio of -3.06 and a beta of 1.46 [3]. However, the company's recent stock performance, including a 61.1% decline since the beginning of the year and a 68.3% drop from its 52-week high of $9.02, has led to a significant decrease in its investment value.

As analysts continue to evaluate HCAT, investors should closely monitor the company's financial performance and the broader market conditions that may impact its stock price. The recent downgrade from Cantor Fitzgerald, along with the company's challenging revenue outlook, highlights the importance of staying informed about the latest developments in the healthcare software sector.

References:
[1] https://www.tipranks.com/news/the-fly/health-catalyst-downgraded-to-neutral-from-overweight-at-cantor-fitzgerald-thefly
[2] https://finance.yahoo.com/news/why-health-catalyst-hcat-stock-182040703.html
[3] https://www.marketbeat.com/instant-alerts/health-catalyst-inc-nasdaqhcat-given-average-rating-of-moderate-buy-by-analysts-2025-08-02/
[4] https://www.quiverquant.com/news/New+Analyst+Forecast%3A+%24HCAT+Given+%244.5+Price+Target