Stephens Investment Management Group LLC Has $57.21 Million Stake in HealthEquity, Inc. $HQY

Key Points

• Stephens Investment Management Group trimmed its HealthEquity stake by 5.7% in the first quarter, but still held 684,619 shares valued at about $57.2 million.
• HealthEquity reported better-than-expected quarterly results, with EPS of $1.24 versus $1.11 expected and revenue of $354.6 million, up 7.2% year over year.
• Analysts remain constructive on the stock, with a Moderate Buy consensus and an average price target of $110.57 after several firms raised their targets.

Stephens Investment Management Group LLC reduced its position in HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 5.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 684,619 shares of the company's stock after selling 41,566 shares during the quarter. Stephens Investment Management Group LLC owned approximately 0.81% of HealthEquity worth $57,214,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Capricorn Fund Managers Ltd bought a new position in HealthEquity during the fourth quarter worth about $6,926,000. Congress Asset Management Co. grew its stake in shares of HealthEquity by 36.3% in the 4th quarter. Congress Asset Management Co. now owns 101,816 shares of the company's stock valued at $9,327,000 after purchasing an additional 27,102 shares during the period. Westfield Capital Management Co. LP raised its holdings in shares of HealthEquity by 13.7% in the 4th quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock worth $178,864,000 after buying an additional 235,794 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd acquired a new position in shares of HealthEquity in the 4th quarter worth approximately $4,381,000. Finally, Norges Bank bought a new position in shares of HealthEquity during the 4th quarter worth approximately $66,927,000. 99.55% of the stock is owned by institutional investors.

HealthEquity Stock Performance

Shares of NASDAQ:HQY opened at $95.31 on Friday. The firm's 50 day simple moving average is $86.04 and its 200 day simple moving average is $84.67. HealthEquity, Inc. has a fifty-two week low of $72.76 and a fifty-two week high of $105.96. The company has a market capitalization of $7.97 billion, a price-to-earnings ratio of 35.70, a P/E/G ratio of 1.60 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 data on Thursday, May 28th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.13. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The firm had revenue of $354.64 million during the quarter, compared to analysts' expectations of $352.02 million. The business's quarterly revenue was up 7.2% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. As a group, sell-side analysts forecast that HealthEquity, Inc. will post 3.92 earnings per share for the current year.

Insider Transactions at HealthEquity

In related news, EVP Delano Ladd sold 7,500 shares of the firm's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $90.00, for a total transaction of $675,000.00. Following the sale, the executive vice president owned 91,141 shares of the company's stock, valued at approximately $8,202,690. This trade represents a 7.60% decrease in their position. The sale 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, Director Gayle Furgurson Wellborn sold 2,439 shares of the business's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $90.00, for a total value of $219,510.00. Following the completion of the transaction, 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 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 13,081 shares of company stock valued at $1,193,000 over the last three months. 1.60% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Royal Bank Of Canada upped their price target on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft lifted their price objective on HealthEquity from $120.00 to $128.00 and gave the company a "buy" rating in a report on Thursday, March 19th. Weiss Ratings upgraded shares of HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. BMO Capital Markets upgraded shares of HealthEquity from a "market perform" rating to an "outperform" rating and increased their target price for the stock from $85.00 to $105.00 in a research report on Thursday, April 9th. Finally, Wells Fargo & Company set a $111.00 price target on shares of HealthEquity in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $110.57.

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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