Grandeur Peak Global Advisors LLC Sells 31,570 Shares of HealthEquity, Inc. $HQY

Key Points

• Grandeur Peak Global Advisors cut its HealthEquity stake by 86.6%, selling 31,570 shares and retaining 4,875 shares worth approximately $440,000. Institutional investors still own 99.55% of the company.
• HealthEquity exceeded quarterly expectations, reporting $1.24 in EPS and $350.7 million in revenue, up 95.5% year over year. Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73.
• Analysts remain broadly positive, with 11 Buy ratings and a consensus “Moderate Buy” rating alongside an average price target of $110.93. However, insiders sold shares recently, including a director’s approximately $798,000 sale under a pre-arranged Rule 10b5-1 plan.

Grandeur Peak Global Advisors LLC lessened its stake in HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 86.6% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 4,875 shares of the company's stock after selling 31,570 shares during the quarter. Grandeur Peak Global Advisors LLC's holdings in HealthEquity were worth $440,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Oxbow Advisors LLC purchased a new position in shares of HealthEquity during the first quarter valued at about $3,147,000. Deutsche Bank AG purchased a new stake in shares of HealthEquity in the second quarter worth about $11,986,000. Maridea Wealth Management LLC purchased a new stake in shares of HealthEquity in the second quarter worth about $2,753,000. Westfield Capital Management Co. LP boosted its stake in HealthEquity by 13.7% during the fourth quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock valued at $178,864,000 after buying an additional 235,794 shares during the last quarter. Finally, Future Fund LLC boosted its stake in HealthEquity by 40.9% during the fourth quarter. Future Fund LLC now owns 44,317 shares of the company's stock valued at $4,060,000 after buying an additional 12,854 shares during the last quarter. Institutional investors own 99.55% of the company's stock.

Insiders Place Their Bets

In other news, Director Adrian T. Dillon sold 7,632 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $104.61, for a total value of $798,383.52. Following the transaction, the director directly owned 62,395 shares in the company, valued at approximately $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 SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,354 shares of HealthEquity stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $95.00, for a total transaction of $223,630.00. Following the sale, the executive vice president owned 52,244 shares of the company's stock, valued at $4,963,180. The trade was a 4.31% 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 have sold 12,456 shares of company stock valued at $1,256,664 over the last three months. Insiders own 1.60% of the company's stock.

HealthEquity Price Performance

HealthEquity stock opened at $96.37 on Monday. 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 2.99 and a debt-to-equity ratio of 0.47. The firm has a 50-day moving average price of $98.16 and a 200-day moving average price of $87.93. The firm has a market capitalization of $7.97 billion, a PE ratio of 34.79, a price-to-earnings-growth ratio of 1.53 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, beating 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 for the quarter, compared to the consensus estimate of $349.22 million. The firm's 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, equities research analysts forecast that HealthEquity, Inc. will post 3.92 EPS for the current year.

HealthEquity News Roundup

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.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on HQY. Barrington Research reaffirmed an "outperform" rating and set a $110.00 price objective on shares of HealthEquity in a report on Friday, May 22nd. Royal Bank Of Canada increased their price target on shares of HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Weiss Ratings upgraded HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, June 5th. Telsey Advisory Group set a $111.00 price objective on HealthEquity in a research note on Friday. Finally, Citigroup restated a "market outperform" rating on shares of 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. Based on data from MarketBeat.com, HealthEquity currently has a consensus rating of "Moderate Buy" and an average price target of $110.93.

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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