Capricorn Fund Managers has significantly reduced its stake in Waystar, selling 692,554 shares valued at approximately $18.38 million during Q1 2026, according to an SEC filing. This sale, combined with market price fluctuations, led to a quarter-end valuation drop of $23.08 million for Waystar, which now constitutes just 0.17% of Capricorn’s $641.43 million U.S. equity portfolio.
Waystar’s stock, currently trading at $24.85, has seen a steep decline of 32.5% over the past year, underperforming the S&P 500 by 65 percentage points. Despite this downturn, Waystar’s cloud-based healthcare payment solutions position it well within the ongoing digital transformation in the sector. The company is guiding for a 17% sales growth in 2026, leveraging AI to enhance its offerings.
For investors, Capricorn’s divestment may signal caution, but it also highlights an opportunity. With Waystar trading at a reasonable valuation of 16 times free cash flow, it could be an attractive investment for those looking to capitalize on the evolving healthcare financial landscape.
Source: fool.com