Boone Capital Management LLC Invests $19.50 Million in HealthEquity, Inc. $HQY

Key Points

• Boone Capital Management opened a new position in HealthEquity, buying 212,856 shares worth about $19.5 million. The stake represents roughly 6.5% of its portfolio and about 0.25% of HealthEquity.
• HealthEquity recently posted solid quarterly results, with EPS of $1.24 beating estimates and revenue of $354.64 million slightly ahead of expectations. Revenue also rose 7.2% year over year.
• Analyst sentiment remains positive overall, with a Moderate Buy consensus and average price target of about $110.57. Several firms recently raised targets or reiterated bullish ratings, though some insider selling was also reported.

Boone Capital Management LLC purchased a new position in shares of HealthEquity, Inc. (NASDAQ:HQY - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 212,856 shares of the company's stock, valued at approximately $19,500,000. HealthEquity accounts for approximately 6.5% of Boone Capital Management LLC's portfolio, making the stock its 8th biggest holding. Boone Capital Management LLC owned approximately 0.25% of HealthEquity at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in HQY. Acumen Wealth Advisors LLC bought a new position in HealthEquity in the 4th quarter worth about $27,000. Caitong International Asset Management Co. Ltd boosted its stake in HealthEquity by 1,723.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company's stock worth $28,000 after purchasing an additional 293 shares during the period. Aster Capital Management DIFC Ltd bought a new position in HealthEquity in the 4th quarter worth about $28,000. Torren Management LLC bought a new position in HealthEquity in the 4th quarter worth about $40,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in HealthEquity by 190.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 604 shares of the company's stock worth $55,000 after purchasing an additional 396 shares during the period. Institutional investors own 99.55% of the company's stock.

Analyst Ratings Changes

Several brokerages have commented on HQY. BMO Capital Markets upgraded HealthEquity from a "market perform" rating to an "outperform" rating and raised their target price for the stock from $85.00 to $105.00 in a research note on Thursday, April 9th. Royal Bank Of Canada raised their target price on HealthEquity from $100.00 to $108.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Barclays cut their target price on HealthEquity from $118.00 to $110.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. Wells Fargo & Company set a $111.00 target price on HealthEquity in a research note on Monday, June 1st. Finally, Jefferies Financial Group set a $108.00 target price on HealthEquity in a research note on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $110.57.

HealthEquity Stock Performance

Shares of NASDAQ HQY opened at $86.33 on Thursday. The stock has a market cap of $7.22 billion, a price-to-earnings ratio of 32.33, a P/E/G ratio of 1.44 and a beta of 0.21. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.46. HealthEquity, Inc. has a 1-year low of $72.76 and a 1-year high of $106.60. The stock's 50-day moving average is $84.76 and its 200 day moving average is $85.35.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its quarterly earnings data 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. The company had revenue of $354.64 million for the quarter, compared to analysts' expectations of $352.02 million. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.HealthEquity's quarterly revenue was up 7.2% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. On average, sell-side analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current fiscal year.

Insider Activity at HealthEquity

In related news, EVP Michael Henry Fiore sold 3,142 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $95.00, for a total transaction of $298,490.00. Following the transaction, the executive vice president directly owned 59,113 shares of the company's stock, valued at approximately $5,615,735. This trade represents a 5.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Delano Ladd sold 7,500 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $90.00, for a total value of $675,000.00. Following the transaction, the executive vice president directly owned 91,141 shares in the company, valued at approximately $8,202,690. This represents a 7.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 13,081 shares of company stock valued at $1,193,000. Corporate insiders own 1.60% of the company's stock.

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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