California State Teachers Retirement System Purchases 8,732,150 Shares of HealthEquity, Inc. $HQY

Key Points

• California State Teachers Retirement System increased its HealthEquity stake by 8,679.7%, purchasing 8.73 million additional shares. It now owns 8.83 million shares, or 10.57% of the company, valued at approximately $797.8 million.
• Other major institutions, including BlackRock, William Blair Investment Management and Bank of America, also established or expanded positions; institutional investors collectively own 99.55% of HealthEquity’s stock.
• HealthEquity exceeded quarterly earnings and revenue expectations, with EPS of $1.24 and revenue of $350.73 million, up 95.5% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $111.87.

California State Teachers Retirement System increased its position in shares of HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 8,679.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,832,754 shares of the company's stock after purchasing an additional 8,732,150 shares during the period. California State Teachers Retirement System owned 10.57% of HealthEquity worth $797,774,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of HQY. BlackRock Inc. purchased a new position in shares of HealthEquity during the second quarter valued at about $1,018,621,000. William Blair Investment Management LLC purchased a new position in shares of HealthEquity during the fourth quarter valued at approximately $169,956,000. Bank of America Corp DE bought a new position in shares of HealthEquity in the second quarter worth about $103,573,000. Atalan Capital Partners LP purchased a new position in HealthEquity during the 2nd quarter worth $82,667,000. Finally, Jupiter Topco LLC purchased a new position in HealthEquity during the 2nd quarter valued at about $78,847,000. Hedge funds and other institutional investors own 99.55% of the company's stock.

HealthEquity Price Performance

Shares of HQY opened at $96.26 on Monday. The firm has a 50-day simple moving average of $99.60 and a 200-day simple moving average of $89.33. HealthEquity, Inc. has a fifty-two week low of $72.76 and a fifty-two week high of $107.62. The company has a debt-to-equity ratio of 0.47, a quick ratio of 2.99 and a current ratio of 2.99. The company has a market capitalization of $7.96 billion, a price-to-earnings ratio of 34.75, a price-to-earnings-growth ratio of 1.52 and a beta of 0.22.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.19 by $0.05. The company 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 company's revenue 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 research analysts anticipate that HealthEquity, Inc. will post 3.93 earnings per share for the current year.

Analysts Set New Price Targets

HQY has been the subject of a number of analyst reports. Weiss Ratings reissued a "hold (c+)" rating on shares of HealthEquity in a research report on Wednesday, September 2nd. Wall Street Zen downgraded HealthEquity from a "buy" rating to a "hold" rating in a research report on Saturday, September 5th. Citizens Jmp increased their price objective on HealthEquity from $110.00 to $111.00 and gave the company a "market outperform" rating in a research note on Monday, June 1st. Deutsche Bank Aktiengesellschaft boosted their price target 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. Finally, KeyCorp reiterated an "overweight" rating on shares of HealthEquity in a research report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $111.87.

Insider Activity at HealthEquity

In related news, EVP Michael Fiore sold 2,470 shares of the business'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 sale, the executive vice president directly owned 56,643 shares in the company, valued at $5,381,085. The trade was a 4.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the sale, the director directly owned 62,395 shares in the company, valued at approximately $6,527,140.95. The trade was a 10.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,456 shares of company stock valued at $1,256,664 over the last ninety days. 1.60% of the stock is currently owned by company insiders.

About HealthEquity

HealthEquity, Inc provides technology-enabled services for consumer-directed benefits and healthcare savings accounts. The company helps employers, benefits advisors and individuals manage tax-advantaged accounts, including health savings accounts (HSAs), flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), commuter benefits and other employee benefit programs.

Its offerings include account administration, payment cards, reimbursement services, benefits communication, compliance support, healthcare spending tools and investment options for eligible HSA funds.

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