HealthEquity (NASDAQ:HQY) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded HealthEquity from “Buy” to “Hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $111.87.
• HealthEquity shares opened at $96.07 after falling 2.7%; the company recently exceeded quarterly expectations, reporting $1.24 in EPS versus $1.19 expected and $350.73 million in revenue.
• Insiders sold 12,456 shares worth approximately $1.26 million over the past three months, while institutional investors own 99.55% of the company.

HealthEquity (NASDAQ:HQY - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other brokerages have also recently issued reports on HQY. BTIG Research reissued a "buy" rating and issued a $115.00 price objective on shares of HealthEquity in a research note on Friday, August 28th. Citizens Jmp raised their target price on HealthEquity from $110.00 to $111.00 and gave the company a "market outperform" rating in a report on Monday, June 1st. Deutsche Bank Aktiengesellschaft lifted their price target on HealthEquity from $135.00 to $142.00 and gave the company a "buy" rating in a research note on Monday. Weiss Ratings restated a "hold (c+)" rating on shares of HealthEquity in a research report on Wednesday. Finally, KeyCorp reaffirmed an "overweight" rating on shares of HealthEquity in a research note on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, HealthEquity has an average rating of "Moderate Buy" and an average price target of $111.87.

HealthEquity Trading Down 2.7%

HQY opened at $96.07 on Friday. HealthEquity has a twelve month low of $72.76 and a twelve month high of $107.62. The company has a 50-day simple moving average of $99.37 and a 200 day simple moving average of $88.61. The company has a quick ratio of 2.99, a current ratio of 2.99 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $7.95 billion, a price-to-earnings ratio of 34.68, a P/E/G ratio of 1.56 and a beta of 0.22.

HealthEquity (NASDAQ:HQY - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.19 by $0.05. The firm had revenue of $350.73 million for the quarter, compared to analyst estimates of $349.22 million. HealthEquity had a net margin of 17.36% and a return on equity of 15.33%. The firm's quarterly revenue was up 95.5% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. Analysts predict that HealthEquity will post 3.93 EPS for the current fiscal year.

Insider Buying and Selling at HealthEquity

In other HealthEquity news, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the completion of the transaction, the director directly owned 62,395 shares in the company, valued at approximately $6,527,140.95. This trade represents a 10.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Fiore sold 2,354 shares of HealthEquity stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $95.00, for a total value of $223,630.00. Following the sale, the executive vice president directly owned 52,244 shares in the company, valued at $4,963,180. The trade was a 4.31% 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. In the last three months, insiders have sold 12,456 shares of company stock worth $1,256,664. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Oxbow Advisors LLC bought a new position in HealthEquity during the 1st quarter worth $3,147,000. Deutsche Bank AG bought a new position in shares of HealthEquity during the second quarter worth about $11,986,000. Maridea Wealth Management LLC bought a new position in shares of HealthEquity during the second quarter worth about $2,753,000. Westfield Capital Management Co. LP lifted its stake in shares of HealthEquity by 13.7% in the fourth quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock worth $178,864,000 after acquiring an additional 235,794 shares during the period. Finally, Sumitomo Mitsui DS Asset Management Company Ltd acquired a new position in shares of HealthEquity in the fourth quarter worth approximately $4,381,000. Institutional investors own 99.55% of the company's stock.

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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