Principal Financial Group Inc. Buys 26,632 Shares of HealthEquity, Inc. $HQY

Key Points

• Principal Financial Group increased its stake in HealthEquity by 9.6% in the first quarter, buying 26,632 additional shares and bringing its holdings to 304,049 shares worth about $25.4 million.
• Wall Street sentiment remains bullish, with 11 analysts rating HQY a Buy and the consensus target price standing at $110.57; RBC also recently raised its target to $108.
• HealthEquity reported strong quarterly results, including EPS of $1.24 versus the $1.11 estimate and revenue growth of 7.2% year over year, while the stock was trading near $98.88.

Principal Financial Group Inc. lifted its stake in HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 9.6% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 304,049 shares of the company's stock after buying an additional 26,632 shares during the quarter. Principal Financial Group Inc. owned approximately 0.36% of HealthEquity worth $25,409,000 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. Sivia Capital Partners LLC purchased a new stake in HealthEquity in the 2nd quarter worth $306,000. Arrowstreet Capital Limited Partnership bought a new position in shares of HealthEquity during the 2nd quarter valued at about $4,747,000. Marshall Wace LLP purchased a new position in shares of HealthEquity during the second quarter valued at about $5,483,000. Amundi grew its position in shares of HealthEquity by 9.3% during the second quarter. Amundi now owns 30,203 shares of the company's stock valued at $3,059,000 after purchasing an additional 2,574 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in shares of HealthEquity during the second quarter valued at about $449,000. Institutional investors own 99.55% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on HQY. Royal Bank Of Canada increased their price target on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a research note on Wednesday, June 3rd. Weiss Ratings raised HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. Citigroup reaffirmed a "market outperform" rating on shares of HealthEquity in a report on Monday, June 1st. Barrington Research reiterated an "outperform" rating and set a $110.00 target price on shares of HealthEquity in a research report on Friday, May 22nd. Finally, KeyCorp reiterated an "overweight" rating on shares of HealthEquity in a research report on Tuesday, May 26th. Eleven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, HealthEquity currently has an average rating of "Moderate Buy" and a consensus target price of $110.57.

HealthEquity Stock Up 1.2%

Shares of NASDAQ HQY opened at $98.88 on Tuesday. HealthEquity, Inc. has a 1 year low of $72.76 and a 1 year high of $105.96. The firm has a 50-day simple moving average of $89.10 and a two-hundred day simple moving average of $84.77. The company has a market cap of $8.27 billion, a P/E ratio of 37.03, a PEG ratio of 1.64 and a beta of 0.21. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.44 and a quick ratio of 3.44.

HealthEquity (NASDAQ:HQY - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $1.24 earnings per share 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 the consensus estimate of $352.02 million. HealthEquity's revenue was up 7.2% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. Research analysts anticipate that HealthEquity, Inc. will post 3.92 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Gayle Furgurson Wellborn sold 2,439 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $90.00, for a total transaction of $219,510.00. Following the completion of the sale, the director directly owned 19,733 shares of the company's stock, valued at approximately $1,775,970. The trade was a 11.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Delano Ladd sold 7,500 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $90.00, for a total transaction of $675,000.00. Following the completion of the transaction, the executive vice president owned 91,141 shares in the company, valued at approximately $8,202,690. The trade was a 7.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 17,905 shares of company stock worth $1,651,280 over the last quarter. Company insiders own 1.60% of the company's stock.

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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