Madison Asset Management LLC Makes New Investment in HealthEquity, Inc. $HQY

Key Points

• Madison Asset Management initiated a HealthEquity position by purchasing 60,491 shares worth approximately $5.46 million, while institutional investors collectively own 99.55% of the company.
• HealthEquity’s latest quarterly results exceeded expectations, with EPS of $1.24 versus the $1.11 consensus estimate and revenue of $354.64 million, up 7.2% year over year.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $110.93; shares recently traded at $103.95, near their 12-month high.

Madison Asset Management LLC purchased a new stake in shares of HealthEquity, Inc. (NASDAQ:HQY - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 60,491 shares of the company's stock, valued at approximately $5,464,000. Madison Asset Management LLC owned approximately 0.07% of HealthEquity at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of HQY. BlackRock Inc. bought a new stake in shares of HealthEquity during the 2nd quarter valued at $1,018,621,000. William Blair Investment Management LLC purchased a new position in shares of HealthEquity during the 4th quarter valued at $169,956,000. Wasatch Advisors LP boosted its holdings in HealthEquity by 10.5% in the 2nd quarter. Wasatch Advisors LP now owns 7,960,735 shares of the company's stock worth $719,014,000 after buying an additional 757,801 shares during the period. Norges Bank bought a new position in HealthEquity in the 4th quarter worth $66,927,000. Finally, Bank of New York Mellon Corp purchased a new stake in HealthEquity in the 2nd quarter worth $60,177,000. 99.55% of the stock is currently owned by institutional investors.

Insider Transactions at HealthEquity

In other news, EVP Michael Henry Fiore sold 2,354 shares of the company's stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $95.00, for a total transaction of $223,630.00. Following the sale, the executive vice president directly owned 52,244 shares of the company's stock, valued at $4,963,180. This represents a 4.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gayle Furgurson Wellborn sold 2,439 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $90.00, for a total value of $219,510.00. Following the transaction, the director owned 19,733 shares of the company's stock, valued at $1,775,970. This represents a 11.00% 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 17,905 shares of company stock valued at $1,651,280 in the last ninety days. Corporate insiders own 1.60% of the company's stock.

HealthEquity Trading Up 1.1%

Shares of HealthEquity stock opened at $103.95 on Thursday. The firm has a market cap of $8.69 billion, a price-to-earnings ratio of 38.93, a PEG ratio of 1.73 and a beta of 0.21. The business has a 50-day moving average price of $96.00 and a 200-day moving average price of $86.94. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46. HealthEquity, Inc. has a twelve month low of $72.76 and a twelve month high of $107.62.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its earnings results on Thursday, May 28th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.13. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The firm had revenue of $354.64 million for the quarter, compared to analysts' expectations of $352.02 million. HealthEquity's revenue for the quarter was up 7.2% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. Equities research analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Royal Bank Of Canada raised their price target on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Citizens Jmp upped their price objective on HealthEquity from $110.00 to $111.00 and gave the stock a "market outperform" rating in a research note on Monday, June 1st. Wells Fargo & Company set a $111.00 target price on HealthEquity in a research report on Monday, June 1st. BTIG Research lifted their target price on HealthEquity from $110.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Finally, KeyCorp restated an "overweight" rating on shares of HealthEquity in a research note on Tuesday, May 26th. Eleven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus 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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