Connor Clark & Lunn Investment Management Ltd. Acquires Shares of 20,332 HealthEquity, Inc. $HQY

Key Points

• Connor Clark & Lunn Investment Management acquired 20,332 HealthEquity shares worth approximately $1.84 million in the second quarter. Institutional investors and hedge funds collectively own 99.55% of the company.
• HealthEquity exceeded quarterly expectations, reporting $1.24 in earnings per share and $350.7 million in revenue, with revenue up 95.5% year over year. Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73.
• Insiders sold 12,456 shares worth approximately $1.26 million over the past three months, including a director’s $798,000 sale under a pre-arranged Rule 10b5-1 plan. Analysts remain generally bullish, with a “Moderate Buy” consensus and an average price target of $110.93.

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in HealthEquity, Inc. (NASDAQ:HQY - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 20,332 shares of the company's stock, valued at approximately $1,836,000.

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

Insider Buying and Selling

In other news, Director Adrian T. Dillon sold 7,632 shares of the company's 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 in the company, valued at $6,527,140.95. This represents a 10.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 shares were 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 represents a 4.18% decrease in their position. 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 worth $1,256,664 over the last three months. Corporate insiders own 1.60% of the company's stock.

HealthEquity Price Performance

Shares of NASDAQ HQY opened at $96.37 on Friday. The firm has a 50-day simple moving average of $98.16 and a 200-day simple moving average of $87.87. The stock has a market capitalization of $8.06 billion, a price-to-earnings ratio of 34.79, a price-to-earnings-growth ratio of 1.62 and a beta of 0.21. The company has a quick ratio of 3.44, a current ratio of 2.99 and a debt-to-equity ratio of 0.47. HealthEquity, Inc. has a 52 week low of $72.76 and a 52 week high of $107.62.

HealthEquity (NASDAQ:HQY - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.05. The firm had revenue of $350.73 million for 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%. HealthEquity's quarterly 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 analysts predict that HealthEquity, Inc. will post 3.92 earnings per share for the current fiscal year.

Key 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.

Analyst Ratings Changes

HQY has been the topic of several research analyst reports. Citizens Jmp lifted their target price on shares of HealthEquity from $110.00 to $111.00 and gave the company a "market outperform" rating in a research report on Monday, June 1st. Weiss Ratings upgraded shares of HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, June 5th. Wall Street Zen upgraded HealthEquity from a "hold" rating to a "buy" rating in a report on Saturday, August 22nd. Barrington Research reiterated an "outperform" rating and set a $110.00 price objective on shares of HealthEquity in a research note on Friday, May 22nd. Finally, Royal Bank Of Canada increased their target price on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Eleven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, HealthEquity has an average rating of "Moderate Buy" and an average price target of $110.93.

About HealthEquity

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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