HealthEquity, Inc. (NASDAQ:HQY) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Moderate Buy consensus from 15 brokerages (11 buy, 1 strong buy, 2 hold, 1 sell) with an average 1‑year target price of $110.36.
• HealthEquity beat last quarter with $0.95 EPS vs. $0.90 expected and $334.6M revenue (up 7.3% YoY); analysts forecast ~2.32 EPS for the fiscal year.
• Shares trade around $81.48 (52‑week range $72.76–$116.65) with a $6.88B market cap and P/E of 33.12, and institutional ownership is ~99.55% as major funds (William Blair, Norges Bank, AQR, Millennium) added sizable stakes.

Shares of HealthEquity, Inc. (NASDAQ:HQY - Get Free Report) have earned an average recommendation of "Moderate Buy" from the fifteen brokerages that are presently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $110.3571.

A number of brokerages have issued reports on HQY. UBS Group set a $110.00 target price on shares of HealthEquity in a research note on Tuesday, February 17th. Barrington Research dropped their price target on shares of HealthEquity from $125.00 to $110.00 and set an "outperform" rating on the stock in a research note on Wednesday, March 18th. The Goldman Sachs Group lowered HealthEquity from a "neutral" rating to a "sell" rating and set a $89.00 price objective for the company. in a report on Friday, January 9th. BMO Capital Markets restated a "market perform" rating on shares of HealthEquity in a research note on Wednesday, March 18th. Finally, Citigroup reaffirmed an "outperform" rating on shares of HealthEquity in a research report on Thursday, December 4th.

HealthEquity Price Performance

Shares of HQY opened at $81.48 on Tuesday. The business's 50-day moving average is $79.96 and its 200-day moving average is $89.59. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.27 and a quick ratio of 3.27. The company has a market capitalization of $6.88 billion, a price-to-earnings ratio of 33.12, a P/E/G ratio of 1.50 and a beta of 0.26. HealthEquity has a fifty-two week low of $72.76 and a fifty-two week high of $116.65.

HealthEquity (NASDAQ:HQY - Get Free Report) last posted its quarterly earnings results on Tuesday, March 17th. The company reported $0.95 EPS for the quarter, topping the consensus estimate of $0.90 by $0.05. The business had revenue of $334.59 million during the quarter, compared to analysts' expectations of $332.48 million. HealthEquity had a net margin of 16.39% and a return on equity of 13.86%. HealthEquity's quarterly revenue was up 7.3% on a year-over-year basis. Equities research analysts expect that HealthEquity will post 2.32 EPS for the current fiscal year.

Hedge Funds Weigh In On HealthEquity

Hedge funds have recently added to or reduced their stakes in the company. William Blair Investment Management LLC acquired a new stake in HealthEquity in the fourth quarter valued at approximately $169,956,000. Norges Bank acquired a new position in shares of HealthEquity during the 4th quarter worth $66,927,000. AQR Capital Management LLC raised its holdings in shares of HealthEquity by 148.5% during the 2nd quarter. AQR Capital Management LLC now owns 1,107,448 shares of the company's stock valued at $116,016,000 after purchasing an additional 661,795 shares in the last quarter. Millennium Management LLC raised its holdings in shares of HealthEquity by 151.5% during the 4th quarter. Millennium Management LLC now owns 951,563 shares of the company's stock valued at $87,173,000 after purchasing an additional 573,283 shares in the last quarter. Finally, Cadian Capital Management LP acquired a new stake in shares of HealthEquity in the 4th quarter valued at $51,915,000. Institutional investors and hedge funds own 99.55% of the company's stock.

HealthEquity Company 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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