William Blair Investment Management LLC Acquires New Stake in HealthEquity, Inc. $HQY

Key Points

• William Blair Investment Management acquired 1.77 million HealthEquity shares worth approximately $160.2 million, giving it a 2.12% stake.
• Institutional investors and hedge funds own 99.55% of HealthEquity, with BlackRock also establishing a large new position valued at about $1.02 billion.
• HealthEquity beat quarterly earnings and revenue estimates, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $110.93.

William Blair Investment Management LLC acquired a new stake in HealthEquity, Inc. (NASDAQ:HQY - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 1,773,227 shares of the company's stock, valued at approximately $160,158,000. William Blair Investment Management LLC owned approximately 2.12% of HealthEquity as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of HealthEquity in the second quarter valued at about $1,018,621,000. Wasatch Advisors LP boosted its position in HealthEquity by 10.5% during the second quarter. Wasatch Advisors LP now owns 7,960,735 shares of the company's stock worth $719,014,000 after acquiring an additional 757,801 shares during the last quarter. Geode Capital Management LLC boosted its position in HealthEquity by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 2,201,232 shares of the company's stock worth $201,685,000 after acquiring an additional 5,671 shares during the last quarter. Westfield Capital Management Co. LP grew its stake in HealthEquity by 13.7% during the 4th quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock valued at $178,864,000 after acquiring an additional 235,794 shares in the last quarter. Finally, AQR Capital Management LLC grew its stake in HealthEquity by 59.3% during the 3rd quarter. AQR Capital Management LLC now owns 1,764,268 shares of the company's stock valued at $167,200,000 after acquiring an additional 656,820 shares in the last quarter. Institutional investors and hedge funds own 99.55% of the company's stock.

HealthEquity Price Performance

HealthEquity stock opened at $105.41 on Friday. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.46. The company has a 50-day moving average price of $96.64 and a 200 day moving average price of $87.20. HealthEquity, Inc. has a 12-month low of $72.76 and a 12-month high of $107.62. The stock has a market cap of $8.81 billion, a P/E ratio of 39.48, a PEG ratio of 1.75 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last posted its 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. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The company had revenue of $354.64 million for the quarter, compared to analyst estimates of $352.02 million. The firm's revenue was up 7.2% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. Sell-side analysts anticipate that HealthEquity, Inc. will post 3.92 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Wall Street Zen raised shares of HealthEquity from a "hold" rating to a "buy" rating in a research note on Saturday. BTIG Research upped their price target on HealthEquity from $110.00 to $115.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Barrington Research reaffirmed an "outperform" rating and issued a $110.00 price target on shares of HealthEquity in a report on Friday, May 22nd. Citizens Jmp lifted their price objective on HealthEquity from $110.00 to $111.00 and gave the stock a "market outperform" rating in a research report on Monday, June 1st. Finally, Weiss Ratings raised HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. Eleven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, HealthEquity has an average rating of "Moderate Buy" and a consensus target price of $110.93.

Insider Activity

In other HealthEquity news, Director Gayle Furgurson Wellborn sold 2,439 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 $219,510.00. Following the completion of the sale, the director owned 19,733 shares of the company's stock, valued at $1,775,970. This trade represents a 11.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $675,000.00. Following the sale, the executive vice president directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 17,905 shares of company stock valued at $1,651,280. 1.60% of the stock is currently owned by company insiders.

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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