Formula Growth Ltd. Purchases New Holdings in HealthEquity, Inc. $HQY

Formula Growth Ltd. purchased 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 firm purchased 34,417 shares of the company's stock, valued at approximately $3,109,000. HealthEquity makes up approximately 1.1% of Formula Growth Ltd.'s investment portfolio, making the stock its 25th biggest holding.

A number of other hedge funds have also recently bought and sold shares of HQY. Sivia Capital Partners LLC bought a new stake in shares of HealthEquity during the 2nd quarter worth approximately $306,000. Arrowstreet Capital Limited Partnership bought a new position in shares of HealthEquity in the second quarter valued at $4,747,000. Marshall Wace LLP bought a new position in shares of HealthEquity in the second quarter valued at $5,483,000. Amundi increased its holdings in HealthEquity by 9.3% during the second quarter. Amundi now owns 30,203 shares of the company's stock worth $3,059,000 after buying an additional 2,574 shares during the last quarter. Finally, Jump Financial LLC acquired a new position in HealthEquity during the second quarter worth $449,000. 99.55% of the stock is currently owned by institutional investors.

Insider Activity

In other news, Director Adrian T. Dillon sold 7,632 shares of the firm's 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 owned 62,395 shares in the company, valued at approximately $6,527,140.95. This trade represents a 10.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through 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 HealthEquity stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $95.00, for a total transaction of $234,650.00. Following the sale, the executive vice president directly owned 56,643 shares of the company's stock, valued at $5,381,085. The trade was a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,456 shares of company stock worth $1,256,664 over the last three months. Insiders own 1.60% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on HQY shares. KeyCorp reiterated an "overweight" rating on shares of HealthEquity in a research note on Tuesday, May 26th. Citigroup reissued a "market outperform" rating on shares of HealthEquity in a research report on Monday, June 1st. Citizens Jmp boosted their price objective on shares of HealthEquity from $110.00 to $111.00 and gave the stock a "market outperform" rating in a research note on Monday, June 1st. BTIG Research upped their target price on shares of HealthEquity from $110.00 to $115.00 and gave the company a "buy" rating in a report on Friday, July 24th. Finally, Wall Street Zen upgraded shares of HealthEquity from a "hold" rating to a "buy" rating in a research note on Saturday, August 22nd. Eleven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $110.93.

HealthEquity News Summary

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity exceeded expectations with adjusted EPS of $1.24 versus the $1.19 consensus and revenue of $350.7 million versus $349.2 million. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved: net income rose 10% to $65.6 million, net margin expanded to 19% from 18%, and adjusted EBITDA increased 11% to $167 million, with the EBITDA margin rising to 48% from 46%. HealthEquity Reports Second Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. HSA assets reached a record $37.9 billion, supporting HealthEquity’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance
• Neutral Sentiment: Revenue guidance was approximately $1.4 billion, broadly in line with analysts’ expectations, meaning the guidance increase was concentrated primarily in earnings rather than sales.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares worth approximately $798,000. The transaction occurred under a pre-arranged Rule 10b5-1 plan, reducing its signaling value, but it may still add short-term selling pressure. Adrian T. Dillon Insider Transaction
• Negative Sentiment: At roughly 35 times earnings, HQY remains priced for substantial growth. Investors may be using the strong report as an opportunity to lock in gains, particularly after the shares traded near their 52-week high.

HealthEquity Stock Down 10.6%

HQY stock opened at $93.39 on Friday. HealthEquity, Inc. has a 1-year low of $72.76 and a 1-year high of $107.62. The business's 50 day simple moving average is $97.93 and its 200 day simple moving average is $87.81. 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 firm has a market capitalization of $7.81 billion, a PE ratio of 34.98, a PEG ratio of 1.76 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.05. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The business had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. The company's quarterly revenue was up 95.5% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. As a group, research analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current year.

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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