HealthEquity (NASDAQ:HQY) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded HealthEquity from “hold” to “buy.” The broader analyst consensus is “Moderate Buy,” with an average price target of $112.20.
• HealthEquity exceeded quarterly expectations, reporting $1.24 in EPS versus the $1.19 consensus and $350.73 million in revenue. Revenue increased 95.5% year over year.
• Institutional ownership is substantial at 99.55%, highlighted by BlackRock’s roughly $1.02 billion new position; meanwhile, a company director sold shares worth approximately $798,000 under a pre-arranged trading plan.

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

Other research analysts also recently issued reports about the stock. Raymond James Financial restated a "strong-buy" rating on shares of HealthEquity in a research report on Thursday, September 3rd. Deutsche Bank Aktiengesellschaft upped their price objective on shares of HealthEquity from $135.00 to $142.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Telsey Advisory Group set a $111.00 target price on HealthEquity in a research note on Friday, August 28th. Citigroup restated a "market outperform" rating on shares of HealthEquity in a report on Friday, August 28th. Finally, BTIG Research reiterated a "buy" rating and set a $115.00 price objective on shares of HealthEquity in a report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $112.20.

HealthEquity Stock Performance

Shares of NASDAQ HQY opened at $92.61 on Friday. HealthEquity has a 12 month low of $72.76 and a 12 month high of $107.62. The business's 50 day moving average is $97.38 and its two-hundred day moving average is $91.09. The company has a market cap of $7.66 billion, a P/E ratio of 33.43, a P/E/G ratio of 1.47 and a beta of 0.24. The company has a quick ratio of 2.99, a current ratio of 2.99 and a debt-to-equity ratio of 0.47.

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

Insider Buying and Selling

In other HealthEquity news, Director Adrian Dillon sold 7,632 shares of the business's 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 sale, the director directly owned 62,395 shares of the company's stock, valued at $6,527,140.95. The trade was a 10.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On HealthEquity

A number of institutional investors and hedge funds have recently modified their holdings of HQY. BlackRock Inc. bought a new position in HealthEquity during the second quarter worth about $1,018,621,000. William Blair Investment Management LLC acquired a new position in HealthEquity in the second quarter valued at $160,158,000. Bank of America Corp DE bought a new stake in shares of HealthEquity in the 2nd quarter valued at $103,573,000. Atalan Capital Partners LP acquired a new position in shares of HealthEquity during the second quarter worth approximately $82,667,000. Finally, Jupiter Topco LLC bought a new position in shares of HealthEquity in the second quarter valued at approximately $78,847,000. 99.55% of the stock is owned by institutional investors.

HealthEquity Company Profile

HealthEquity, Inc NASDAQ: HQY provides technology-enabled services for consumer-directed health and benefits accounts. The company administers health savings accounts (HSAs) and offers related products such as flexible spending accounts, health reimbursement arrangements, commuter benefits and other employee benefit programs.

Its platform is designed to help employers, benefits advisors, health plans and individuals manage benefits, make healthcare payments, access account information and invest eligible HSA funds.

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