Canada Pension Plan Investment Board Makes New Investment in HealthEquity, Inc. $HQY

Key Points

• Canada Pension Plan Investment Board purchased 135,600 HealthEquity shares worth approximately $12.25 million, giving it a 0.16% stake. Institutional investors collectively own 99.55% of the company.
• HealthEquity reported quarterly EPS of $1.24, exceeding the $1.19 consensus, while revenue rose 95.5% year over year to $350.7 million. Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above analyst expectations.
• Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $110.93. However, the stock trades at roughly 35 times earnings, and insiders recently sold shares under pre-arranged trading plans.

Canada Pension Plan Investment Board purchased a new stake in HealthEquity, Inc. (NASDAQ:HQY - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 135,600 shares of the company's stock, valued at approximately $12,247,000. Canada Pension Plan Investment Board owned 0.16% of HealthEquity as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Acumen Wealth Advisors LLC acquired a new stake in shares of HealthEquity during the 4th quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of HealthEquity by 1,723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company's stock valued at $28,000 after acquiring an additional 293 shares during the period. Aster Capital Management DIFC Ltd acquired a new position in shares of HealthEquity during the 4th quarter valued at $28,000. Leonteq Securities AG boosted its stake in HealthEquity by 159.9% during the first quarter. Leonteq Securities AG now owns 382 shares of the company's stock worth $32,000 after acquiring an additional 235 shares in the last quarter. Finally, Axiom Investment Management LLC bought a new position in HealthEquity during the first quarter worth $33,000. 99.55% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

HQY has been the subject of several research analyst reports. Wells Fargo & Company set a $111.00 price target on shares of HealthEquity in a research note on Monday, June 1st. Citigroup reissued a "market outperform" rating on shares of HealthEquity in a research report on Friday. Weiss Ratings upgraded HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. Royal Bank Of Canada raised their target price on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a research note on Wednesday, June 3rd. Finally, Telsey Advisory Group set a $111.00 target price on HealthEquity in a research report on Friday. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $110.93.

More HealthEquity News

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity exceeded expectations with adjusted earnings of $1.24 per share versus the $1.19 consensus, while revenue reached $350.7 million, slightly above estimates. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with net income rising 10% to $65.6 million and net margin expanding to 19% from 18%. Adjusted EBITDA grew 11% to $167 million, while its margin increased to 48% from 46%. HealthEquity Second-Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion provide additional support for the company’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance
• Positive Sentiment: BTIG Research reaffirmed its “buy” rating and raised its price target to $115. Another analysis indicated that HQY could be approximately 19% undervalued after the guidance increase, reinforcing the bullish interpretation of the earnings update. BTIG Research Rating HealthEquity Could Be Undervalued
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.4 billion was broadly in line with expectations, so the guidance improvement was driven mainly by stronger anticipated earnings and margins.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares valued at approximately $798,000, reducing his position by 10.9%. The sale was executed under a pre-arranged Rule 10b5-1 plan, which reduces its negative signaling value but could still attract investor attention. HealthEquity Director Stock Sale
• Negative Sentiment: HQY trades at a premium valuation of roughly 35 times earnings. After the recent advance toward its 52-week high, some investors may lock in gains, potentially tempering the stock’s reaction to otherwise favorable fundamentals.

Insider Transactions at HealthEquity

In other news, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction that occurred on 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 sale, the director directly owned 62,395 shares of the company's stock, valued at $6,527,140.95. This represents a 10.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,470 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $95.00, for a total value of $234,650.00. Following the completion of the sale, the executive vice president directly owned 56,643 shares of the company's stock, valued at approximately $5,381,085. This trade represents a 4.18% 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 have sold a total of 12,456 shares of company stock valued at $1,256,664 in the last quarter. Company insiders own 1.60% of the company's stock.

HealthEquity Stock Performance

NASDAQ HQY opened at $96.37 on Friday. The company has a fifty day simple moving average of $98.16 and a 200 day simple moving average of $87.87. HealthEquity, Inc. has a 12-month low of $72.76 and a 12-month high of $107.62. The company has a current ratio of 2.99, a quick ratio of 3.44 and a debt-to-equity ratio of 0.47. The company has a market cap of $8.06 billion, a P/E ratio of 34.79, a PEG ratio of 1.62 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, topping the consensus estimate of $1.19 by $0.05. HealthEquity had a net margin of 17.36% and a return on equity of 15.33%. The company had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. HealthEquity'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. Sell-side analysts predict that HealthEquity, Inc. will post 3.92 earnings per share for the current fiscal year.

HealthEquity Company 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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