BTIG Research Reaffirms Buy Rating for HealthEquity (NASDAQ:HQY)

Key Points

• BTIG Research reaffirmed its Buy rating on HealthEquity and maintained a $115 price target, implying approximately 23% upside from the reported share price.
• HealthEquity beat quarterly expectations with EPS of $1.24 versus $1.19 expected and revenue of $350.7 million, up 95.5% year over year. Management raised fiscal 2027 EPS guidance to $4.66–$4.73, supported by record HSA assets of $37.9 billion.
• Analyst sentiment remains favorable, with 11 Buy ratings and a consensus “Moderate Buy” rating, though shares trade at roughly 35 times earnings near their 52-week high and insiders have recently sold shares under pre-arranged trading plans.

HealthEquity (NASDAQ:HQY - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at BTIG Research in a report issued on Friday,Benzinga reports. They currently have a $115.00 price target on the stock. BTIG Research's price objective would suggest a potential upside of 23.14% from the stock's current price.

Other analysts have also recently issued research reports about the stock. Wall Street Zen raised shares of HealthEquity from a "hold" rating to a "buy" rating in a research report on Saturday, August 22nd. Telsey Advisory Group set a $111.00 price objective on HealthEquity in a research note on Friday. Citigroup restated a "market outperform" rating on shares of HealthEquity in a research report on Friday. KeyCorp reaffirmed an "overweight" rating on shares of HealthEquity in a research note on Tuesday, May 26th. Finally, Citizens Jmp lifted their target price on HealthEquity from $110.00 to $111.00 and gave the stock a "market outperform" rating in a report on Monday, June 1st. Eleven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $110.93.

HealthEquity Stock Performance

NASDAQ:HQY opened at $93.39 on Friday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.44 and a current ratio of 3.44. HealthEquity has a fifty-two week low of $72.76 and a fifty-two week high of $107.62. The company has a 50 day simple moving average of $97.93 and a two-hundred day simple moving average of $87.81. The company has a market capitalization of $7.81 billion, a PE ratio of 34.98, a P/E/G ratio of 1.76 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.19 by $0.05. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The firm had revenue of $350.73 million for the quarter, compared to the consensus estimate of $349.22 million. The business's revenue for the quarter was up 95.5% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. Research analysts anticipate that HealthEquity will post 3.92 earnings per share for the current year.

Insider Activity

In other news, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $104.61, for a total transaction of $798,383.52. Following the transaction, the director owned 62,395 shares of the company's stock, valued at $6,527,140.95. This represents a 10.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,470 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $95.00, for a total value of $234,650.00. Following the completion of the sale, the executive vice president owned 56,643 shares of the company's stock, valued at approximately $5,381,085. This represents a 4.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,456 shares of company stock worth $1,256,664 in the last quarter. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On HealthEquity

Several large investors have recently added to or reduced their stakes in the business. Oxbow Advisors LLC bought a new stake in shares of HealthEquity in the 1st quarter worth $3,147,000. Deutsche Bank AG bought a new position in shares of HealthEquity during the second quarter valued at about $11,986,000. Maridea Wealth Management LLC bought a new position in shares of HealthEquity during the second quarter valued at about $2,753,000. Westfield Capital Management Co. LP boosted its holdings in HealthEquity by 13.7% during the fourth quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock worth $178,864,000 after purchasing an additional 235,794 shares during the last quarter. Finally, Future Fund LLC grew its position in HealthEquity by 40.9% in the 4th quarter. Future Fund LLC now owns 44,317 shares of the company's stock worth $4,060,000 after purchasing an additional 12,854 shares in the last quarter. Institutional investors own 99.55% of the company's stock.

HealthEquity News Roundup

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity reported quarterly EPS of $1.24, ahead of the $1.19 consensus estimate, while revenue reached $350.7 million, slightly above expectations. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with net income rising 10% to $65.6 million and adjusted EBITDA increasing 11% to $167 million. Net and adjusted EBITDA margins also expanded, indicating operating leverage. HealthEquity Second-Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion further support the company’s long-term growth prospects. HealthEquity Raises Fiscal 2027 Guidance
• Neutral Sentiment: Fiscal 2027 revenue guidance was approximately $1.4 billion, broadly in line with expectations. This suggests the guidance upgrade was driven mainly by improved earnings outlook rather than a meaningful increase in projected sales.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares for approximately $798,000, reducing his holdings by 10.9%. The sale was made under a pre-arranged Rule 10b5-1 plan, which limits its bearish signal, but it may still contribute to near-term selling pressure. HealthEquity Director Stock Sale
• Negative Sentiment: HQY trades at roughly 35 times earnings after approaching its 52-week high. Investors may be taking profits or demanding stronger upside after the earnings beat, particularly because revenue guidance was not raised significantly.

About HealthEquity

HealthEquity, Inc NASDAQ: HQY is a leading administrator of consumer-directed health accounts and related benefit solutions in the United States. Founded in 2002 and headquartered in Draper, Utah, the company specializes in health savings accounts (HSAs) and offers complementary services such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter benefits. Through its technology-driven platform, HealthEquity enables employers, health plans and individuals to streamline account management, improve cost transparency and encourage more informed healthcare spending.

Serving millions of members across all 50 states, HealthEquity leverages an open-architecture ecosystem that integrates with health plans, payroll providers and financial institutions.

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