American Century Companies Inc. Acquires 204,195 Shares of HealthEquity, Inc. $HQY

Key Points

• American Century Companies Inc. increased its stake in HealthEquity, Inc. by 35.8%, acquiring an additional 204,195 shares, totaling 775,147 shares valued at approximately $68.5 million.
• Multiple analysts revised their price targets for HealthEquity, with Bank of America setting a new target of $125 and Deutsche Bank raising theirs to $115, resulting in an average target price of $118.55.
• Insider trading activity saw two executives selling a significant number of shares, with one reducing their ownership by 43.38%, leading to a total of 291,744 shares sold in the last three months.

American Century Companies Inc. increased its position in HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 35.8% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 775,147 shares of the company's stock after acquiring an additional 204,195 shares during the period. American Century Companies Inc. owned about 0.90% of HealthEquity worth $68,500,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in the company. Montanaro Asset Management Ltd purchased a new position in HealthEquity in the 1st quarter worth approximately $1,352,000. Russell Investments Group Ltd. raised its holdings in HealthEquity by 108.7% in the 1st quarter. Russell Investments Group Ltd. now owns 140,829 shares of the company's stock worth $12,445,000 after acquiring an additional 73,358 shares during the last quarter. Nuveen LLC purchased a new position in HealthEquity in the 1st quarter worth approximately $53,076,000. Invesco Ltd. raised its stake in HealthEquity by 50.6% during the 1st quarter. Invesco Ltd. now owns 2,446,198 shares of the company's stock valued at $216,171,000 after buying an additional 821,425 shares during the last quarter. Finally, Townsquare Capital LLC raised its stake in HealthEquity by 7.2% during the 1st quarter. Townsquare Capital LLC now owns 22,344 shares of the company's stock valued at $1,975,000 after buying an additional 1,498 shares during the last quarter. 99.55% of the stock is currently owned by hedge funds and other institutional investors.

HealthEquity Price Performance

HealthEquity stock traded down $1.24 during mid-day trading on Friday, hitting $89.82. The stock had a trading volume of 1,284,430 shares, compared to its average volume of 879,297. The firm has a market capitalization of $7.77 billion, a P/E ratio of 65.56, a P/E/G ratio of 1.39 and a beta of 0.54. The company has a current ratio of 4.06, a quick ratio of 4.06 and a debt-to-equity ratio of 0.50. The firm's 50 day moving average is $96.78 and its 200 day moving average is $96.54. HealthEquity, Inc. has a one year low of $73.84 and a one year high of $116.65.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its earnings results on Tuesday, June 3rd. The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.16. The company had revenue of $330.80 million during the quarter, compared to the consensus estimate of $322.25 million. HealthEquity had a net margin of 9.80% and a return on equity of 11.01%. During the same quarter in the prior year, the firm posted $0.80 EPS. HealthEquity has set its FY 2026 guidance at 3.610-3.78 EPS. On average, sell-side analysts forecast that HealthEquity, Inc. will post 2.32 earnings per share for the current fiscal year.

Insider Buying and Selling at HealthEquity

In related news, Director Jon Kessler sold 134,183 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $112.08, for a total transaction of $15,039,230.64. Following the completion of the transaction, the director directly owned 253,510 shares of the company's stock, valued at approximately $28,413,400.80. This represents a 34.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Michael Henry Fiore sold 1,794 shares of the stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $101.73, for a total transaction of $182,503.62. Following the completion of the transaction, the executive vice president directly owned 53,225 shares of the company's stock, valued at approximately $5,414,579.25. The trade was a 3.26% decrease in their position. The disclosure for this sale can be found here. Insiders sold 291,744 shares of company stock valued at $32,705,007 in the last 90 days. Insiders own 1.50% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on HQY. JMP Securities boosted their target price on shares of HealthEquity from $110.00 to $117.00 and gave the company a "market outperform" rating in a research note on Wednesday, June 4th. Royal Bank Of Canada boosted their target price on shares of HealthEquity from $112.00 to $117.00 and gave the company an "outperform" rating in a research note on Wednesday, June 4th. Barrington Research boosted their target price on shares of HealthEquity from $112.00 to $125.00 and gave the company an "outperform" rating in a research note on Thursday, June 5th. Bank of America boosted their target price on shares of HealthEquity from $110.00 to $125.00 and gave the company a "buy" rating in a research note on Wednesday, June 4th. Finally, The Goldman Sachs Group boosted their target price on shares of HealthEquity from $94.00 to $104.00 and gave the company a "neutral" rating in a research note on Wednesday, June 4th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $118.55.

HealthEquity Company Profile

HealthEquity, Inc provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts.