Atalan Capital Partners LP Acquires New Position in HealthEquity, Inc. $HQY

Key Points

• Atalan Capital Partners acquired 915,270 HealthEquity shares worth approximately $82.7 million, giving it a 1.09% stake and making HQY 5.1% of its portfolio. Institutional investors collectively own 99.55% of the company.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $110.93; BTIG raised its target to $115.
• HealthEquity beat quarterly earnings expectations, reporting $1.24 EPS versus $1.11 expected and $354.64 million in revenue, up 7.2% year over year. The stock opened at $104.42, near its 52-week high of $107.62.

Atalan Capital Partners LP acquired a new position in shares of HealthEquity, Inc. (NASDAQ:HQY - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 915,270 shares of the company's stock, valued at approximately $82,667,000. HealthEquity accounts for 5.1% of Atalan Capital Partners LP's portfolio, making the stock its 9th biggest position. Atalan Capital Partners LP owned approximately 1.09% of HealthEquity at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in HealthEquity in the second quarter worth $1,018,621,000. Wasatch Advisors LP grew its position in HealthEquity by 10.5% in the 2nd quarter. Wasatch Advisors LP now owns 7,960,735 shares of the company's stock worth $719,014,000 after purchasing an additional 757,801 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of HealthEquity by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,201,232 shares of the company's stock valued at $201,685,000 after purchasing an additional 5,671 shares during the period. Westfield Capital Management Co. LP increased 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 valued at $178,864,000 after purchasing an additional 235,794 shares during the period. Finally, William Blair Investment Management LLC bought a new stake in shares of HealthEquity during the fourth quarter valued at approximately $169,956,000. Institutional investors and hedge funds own 99.55% of the company's stock.

Analyst Upgrades and Downgrades

HQY has been the subject of a number of recent analyst reports. Wells Fargo & Company set a $111.00 price objective on HealthEquity in a report on Monday, June 1st. KeyCorp reiterated an "overweight" rating on shares of HealthEquity in a research report on Tuesday, May 26th. BTIG Research increased their price target on HealthEquity from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Barrington Research restated an "outperform" rating and set a $110.00 price objective on shares of HealthEquity in a research note on Friday, May 22nd. Finally, Weiss Ratings raised shares of HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, June 5th. Eleven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $110.93.

Insider Activity at HealthEquity

In related news, EVP Michael Henry Fiore sold 2,354 shares of the business's stock in a transaction that occurred on 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 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. In the last 90 days, insiders have sold 7,966 shares of company stock valued at $756,770. 1.60% of the stock is owned by insiders.

HealthEquity Price Performance

Shares of HealthEquity stock opened at $104.42 on Thursday. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.46. The company's 50-day moving average price is $97.77 and its two-hundred day moving average price is $87.71. HealthEquity, Inc. has a 52 week low of $72.76 and a 52 week high of $107.62. The stock has a market cap of $8.73 billion, a PE ratio of 39.11, a price-to-earnings-growth ratio of 1.77 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $1.24 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.13. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The company had revenue of $354.64 million during the quarter, compared to the consensus estimate of $352.02 million. HealthEquity's revenue was up 7.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current fiscal year.

HealthEquity Profile

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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