WCM Investment Management LLC Decreases Stake in HealthEquity, Inc. $HQY

Key Points

• WCM Investment Management reduced its stake in HealthEquity by 17.3% in the first quarter, selling 40,589 shares and ending with 193,371 shares valued at about $15.8 million.
• HealthEquity’s latest quarterly results beat expectations, with EPS of $1.24 versus $1.11 expected and revenue of $354.64 million, up 7.2% year over year. The company also raised FY 2027 guidance to 2.880–2.950 EPS.
• Analyst sentiment remains mostly positive, with a consensus Moderate Buy rating and an average price target of $110.57. However, some recent insider selling and a downgrade from Wall Street Zen to Hold were also noted.

WCM Investment Management LLC cut its holdings in shares of HealthEquity, Inc. (NASDAQ:HQY - Free Report) by 17.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 193,371 shares of the company's stock after selling 40,589 shares during the quarter. WCM Investment Management LLC owned approximately 0.23% of HealthEquity worth $15,756,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in HQY. Acumen Wealth Advisors LLC bought a new stake in shares of HealthEquity in the fourth quarter valued at approximately $27,000. Aster Capital Management DIFC Ltd bought a new position in HealthEquity in the 4th quarter worth approximately $28,000. Caitong International Asset Management Co. Ltd grew its stake in HealthEquity by 1,723.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company's stock valued at $28,000 after buying an additional 293 shares in the last quarter. Leonteq Securities AG grew its stake in HealthEquity by 159.9% in the 1st quarter. Leonteq Securities AG now owns 382 shares of the company's stock valued at $32,000 after buying an additional 235 shares in the last quarter. Finally, Torren Management LLC bought a new stake in HealthEquity during the 4th quarter valued at $40,000. Institutional investors own 99.55% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Royal Bank Of Canada increased their target price on HealthEquity from $100.00 to $108.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. Wall Street Zen cut HealthEquity from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Wells Fargo & Company set a $111.00 price objective on HealthEquity in a research note on Monday, June 1st. Weiss Ratings raised HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, June 5th. Finally, Barrington Research reaffirmed an "outperform" rating and set a $110.00 target price on shares of HealthEquity in a report on Friday, May 22nd. Eleven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $110.57.

HealthEquity Price Performance

HealthEquity stock opened at $97.67 on Monday. HealthEquity, Inc. has a 52 week low of $72.76 and a 52 week high of $105.96. The business has a 50-day simple moving average of $88.76 and a 200 day simple moving average of $84.73. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46. The stock has a market cap of $8.17 billion, a price-to-earnings ratio of 36.58, a PEG ratio of 1.64 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.13. The firm had revenue of $354.64 million for the quarter, compared to analysts' expectations of $352.02 million. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The business'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. On average, research analysts forecast that HealthEquity, Inc. will post 3.92 earnings per share for the current fiscal year.

Insider Buying and Selling

In other HealthEquity news, Director Gayle Furgurson Wellborn sold 2,439 shares of the business's 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 completion of the transaction, the director owned 19,733 shares of the company's stock, valued at $1,775,970. The trade was a 11.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 3,142 shares of the firm's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $95.00, for a total transaction of $298,490.00. Following the sale, the executive vice president owned 59,113 shares in the company, valued at approximately $5,615,735. This trade represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 17,905 shares of company stock worth $1,651,280. Insiders own 1.60% of the company's stock.

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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