HealthEquity (NASDAQ:HQY) Announces Quarterly Earnings Results

Key Points

• HealthEquity reported a quarterly earnings per share (EPS) of $0.92, in line with analysts' estimates, and achieved a return on equity of 11.01%.
• Insider trading activity saw significant sales, with Director Jon Kessler selling 134,183 shares for over $15 million, indicating a 34.61% decrease in his position.
• Analysts have upgraded HealthEquity's stock ratings, with multiple research firms raising their price targets, including Bank of America which increased its target from $110.00 to $125.00.

HealthEquity (NASDAQ:HQY - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.92 EPS for the quarter, meeting analysts' consensus estimates of $0.92, Zacks reports. HealthEquity had a return on equity of 11.01% and a net margin of 9.80%.

HealthEquity Trading Down 0.6%

HQY traded down $0.51 during midday trading on Tuesday, hitting $88.82. The company's stock had a trading volume of 2,681,758 shares, compared to its average volume of 1,013,365. The firm has a market cap of $7.68 billion, a P/E ratio of 64.83, a PEG ratio of 1.38 and a beta of 0.50. HealthEquity has a 52-week low of $73.84 and a 52-week high of $116.65. The company has a current ratio of 4.06, a quick ratio of 4.06 and a debt-to-equity ratio of 0.50. The firm has a 50-day moving average price of $95.26 and a two-hundred day moving average price of $95.41.

Insiders Place Their Bets

In other news, Director Jon Kessler sold 134,183 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $112.08, for a total transaction of $15,039,230.64. Following the completion of the sale, the director directly owned 253,510 shares of the company's stock, valued at $28,413,400.80. This trade represents a 34.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Michael Henry Fiore sold 1,794 shares of HealthEquity stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $101.73, for a total value of $182,503.62. Following the sale, the executive vice president owned 53,225 shares of the company's stock, valued at approximately $5,414,579.25. This represents a 3.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 291,744 shares of company stock worth $32,705,007 over the last quarter. 1.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On HealthEquity

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cerity Partners LLC raised its holdings in shares of HealthEquity by 82.4% in the second quarter. Cerity Partners LLC now owns 27,404 shares of the company's stock valued at $2,871,000 after buying an additional 12,381 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in HealthEquity by 89.4% in the second quarter. BNP Paribas Financial Markets now owns 21,761 shares of the company's stock valued at $2,280,000 after buying an additional 10,273 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in HealthEquity by 222.5% during the second quarter. Tower Research Capital LLC TRC now owns 14,121 shares of the company's stock worth $1,479,000 after purchasing an additional 9,742 shares during the last quarter. Engineers Gate Manager LP acquired a new stake in shares of HealthEquity in the 2nd quarter valued at approximately $1,370,000. Finally, Tidal Investments LLC bought a new position in HealthEquity during the second quarter worth about $1,226,000. Institutional investors own 99.55% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. JMP Securities raised their target price on shares of HealthEquity from $110.00 to $117.00 and gave the stock a "market outperform" rating in a research note on Wednesday, June 4th. Raymond James Financial reiterated a "strong-buy" rating and set a $120.00 price target (up from $115.00) on shares of HealthEquity in a research report on Tuesday, July 8th. Barrington Research restated an "outperform" rating and issued a $125.00 price objective on shares of HealthEquity in a report on Friday. Bank of America boosted their target price on HealthEquity from $110.00 to $125.00 and gave the company a "buy" rating in a research report on Wednesday, June 4th. Finally, Wall Street Zen upgraded shares of HealthEquity from a "hold" rating to a "buy" rating in a research note on Friday, June 6th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $117.82.

HealthEquity Company Profile

HealthEquity, Inc provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts.

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