HealthEquity (NASDAQ:HQY) Shares Down 5.5% - Here's What Happened

Key Points

• Shares fell 5.5% to about $79.58 on Friday on light trading, with 244,139 shares changing hands—down roughly 76% from average volume.
• Analyst consensus is a "Moderate Buy" with a $111.79 average target; Deutsche Bank raised its target to $128 while several firms trimmed theirs into the $100–$110 area.
• Quarterly results beat estimates: HealthEquity reported $0.95 EPS vs. $0.90 expected and revenue of $334.6M (up 7.3% year‑over‑year), underpinning its growth story despite the stock decline.

HealthEquity, Inc. (NASDAQ:HQY - Get Free Report) fell 5.5% on Friday . The stock traded as low as $80.44 and last traded at $79.5750. 244,139 shares traded hands during trading, a decline of 76% from the average session volume of 1,013,114 shares. The stock had previously closed at $84.20.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Deutsche Bank Aktiengesellschaft raised their target price on HealthEquity from $120.00 to $128.00 and gave the stock a "buy" rating in a report on Thursday, March 19th. Barrington Research decreased their target price on HealthEquity from $125.00 to $110.00 and set an "outperform" rating on the stock in a report on Wednesday, March 18th. BTIG Research decreased their target price on HealthEquity from $130.00 to $110.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Jefferies Financial Group set a $108.00 target price on HealthEquity in a report on Thursday, February 19th. Finally, Raymond James Financial set a $100.00 target price on HealthEquity in a report on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $111.79.

HealthEquity Trading Down 5.6%

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 stock has a fifty day simple moving average of $79.82 and a 200 day simple moving average of $89.10. The firm has a market capitalization of $6.72 billion, a P/E ratio of 32.23, a PEG ratio of 1.49 and a beta of 0.26.

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, beating analysts' consensus estimates of $0.90 by $0.05. The business had revenue of $334.59 million for the quarter, compared to analysts' expectations of $332.48 million. HealthEquity had a return on equity of 13.86% and a net margin of 16.39%.The firm's quarterly revenue was up 7.3% on a year-over-year basis. As a group, research analysts forecast that HealthEquity, Inc. will post 2.32 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in HQY. Simplify Asset Management Inc. acquired a new position in shares of HealthEquity during the third quarter worth $1,498,000. Capricorn Fund Managers Ltd acquired a new position in shares of HealthEquity during the fourth quarter worth $6,926,000. 12th Street Asset Management Company LLC increased its position in shares of HealthEquity by 114.4% during the third quarter. 12th Street Asset Management Company LLC now owns 272,068 shares of the company's stock worth $25,784,000 after purchasing an additional 145,151 shares in the last quarter. Oppenheimer Asset Management Inc. increased its position in shares of HealthEquity by 45.5% during the third quarter. Oppenheimer Asset Management Inc. now owns 155,543 shares of the company's stock worth $14,741,000 after purchasing an additional 48,621 shares in the last quarter. Finally, Bessemer Group Inc. increased its position in shares of HealthEquity by 21.3% during the third quarter. Bessemer Group Inc. now owns 349,342 shares of the company's stock worth $33,108,000 after purchasing an additional 61,317 shares in the last quarter. Hedge funds and other institutional investors own 99.55% 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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