HealthEquity (NASDAQ:HQY) Price Target Raised to $108.00

Key Points

• Royal Bank of Canada raised HealthEquity’s price target from $100 to $108 and kept an outperform rating, implying about 23% upside from the previous close.
• HealthEquity recently beat quarterly expectations, posting $1.24 EPS versus the $1.11 estimate on revenue of $354.64 million, with revenue up 7.2% year over year.
• The company also expanded its share repurchase program by $1 billion and lifted its FY 2027 revenue outlook to $1.41 billion-$1.42 billion, although its FY 2027 EPS guidance may be viewed as conservative versus some expectations.

HealthEquity (NASDAQ:HQY - Get Free Report) had its price target upped by research analysts at Royal Bank Of Canada from $100.00 to $108.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price suggests a potential upside of 22.97% from the company's previous close.

A number of other research firms have also recently weighed in on HQY. Raymond James Financial set a $100.00 price objective on shares of HealthEquity in a report on Tuesday, February 17th. JPMorgan Chase & Co. cut their target price on shares of HealthEquity from $129.00 to $123.00 and set an "overweight" rating on the stock in a report on Wednesday, March 18th. Barclays cut their target price on shares of HealthEquity from $118.00 to $110.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Jefferies Financial Group set a $108.00 target price on shares of HealthEquity in a report on Thursday, February 19th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of HealthEquity from $120.00 to $128.00 and gave the company a "buy" rating in a research note on Thursday, March 19th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $112.36.

HealthEquity Trading Down 3.0%

HQY stock traded down $2.69 during mid-day trading on Friday, hitting $87.83. 1,276,195 shares of the company were exchanged, compared to its average volume of 997,799. The company has a quick ratio of 3.27, a current ratio of 3.27 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $7.36 billion, a P/E ratio of 35.59, a PEG ratio of 1.57 and a beta of 0.19. The business has a fifty day simple moving average of $83.27 and a 200-day simple moving average of $86.76. HealthEquity has a 12-month low of $72.76 and a 12-month high of $116.65.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.11 by $0.13. HealthEquity had a net margin of 16.39% and a return on equity of 13.86%. The company had revenue of $354.64 million during the quarter, compared to analyst estimates of $352.02 million. The business's revenue for the quarter 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, equities research analysts predict that HealthEquity will post 3.84 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Sivia Capital Partners LLC acquired a new stake in HealthEquity during the 2nd quarter worth approximately $306,000. Arrowstreet Capital Limited Partnership acquired a new stake in HealthEquity in the second quarter valued at approximately $4,747,000. Marshall Wace LLP acquired a new stake in HealthEquity in the second quarter valued at approximately $5,483,000. Amundi grew its position in HealthEquity by 9.3% in the second quarter. Amundi now owns 30,203 shares of the company's stock valued at $3,059,000 after acquiring an additional 2,574 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in HealthEquity in the second quarter valued at approximately $449,000. 99.55% of the stock is currently owned by hedge funds and other institutional investors.

HealthEquity News Summary

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity reported Q1 EPS of $1.24, ahead of the $1.11 estimate, on revenue of $354.64 million versus $352.02 million expected; revenue rose 7.2% year over year. HealthEquity earnings report and transcript
• Positive Sentiment: The company said it raised its repurchase program by $1.0 billion, which can signal confidence in future cash generation and provide support for the share price. HealthEquity financial results and guidance press release
• Positive Sentiment: HealthEquity raised its FY 2027 revenue outlook to $1.41 billion-$1.42 billion, reinforcing the view that growth is continuing despite a mixed broader market backdrop. Seeking Alpha article on FY 2027 revenue and buyback
• Neutral Sentiment: Investors are also parsing the earnings call transcript and post-earnings coverage for management commentary on margins, guidance, and demand trends. HQY Q1 2027 earnings call transcript
• Negative Sentiment: The main caution is that FY 2027 EPS guidance of 2.880-2.950 was below the much higher consensus figure cited in the news flow, which could temper enthusiasm if investors focus on profit expectations rather than revenue growth. HealthEquity financial results and guidance press release

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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