HealthEquity (NASDAQ:HQY) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded HealthEquity from a buy to a hold, though the broader analyst view remains constructive with a “Moderate Buy” consensus and an average price target of $110.57.
• HealthEquity reported better-than-expected quarterly results, posting EPS of $1.24 versus $1.11 expected and revenue of $354.64 million, up 7.2% year over year.
• There has been notable insider selling, including executive vice presidents Michael Henry Fiore and Delano Ladd, while institutional investors still own nearly all of the stock.

HealthEquity (NASDAQ:HQY - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other research analysts have also recently commented on HQY. JPMorgan Chase & Co. cut their price target on HealthEquity from $129.00 to $123.00 and set an "overweight" rating on the stock in a research note on Wednesday, March 18th. Deutsche Bank Aktiengesellschaft raised their price objective on HealthEquity from $120.00 to $128.00 and gave the company a "buy" rating in a research note on Thursday, March 19th. Citigroup restated a "market outperform" rating on shares of HealthEquity in a report on Monday, June 1st. KeyCorp reaffirmed an "overweight" rating on shares of HealthEquity in a research report on Tuesday, May 26th. Finally, Wells Fargo & Company set a $111.00 target price on HealthEquity in a research note on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, HealthEquity currently has an average rating of "Moderate Buy" and an average price target of $110.57.

HealthEquity Price Performance

Shares of HQY stock opened at $95.31 on Friday. The firm has a fifty day simple moving average of $86.04 and a 200-day simple moving average of $84.67. The company has a market capitalization of $7.97 billion, a PE ratio of 35.70, a price-to-earnings-growth ratio of 1.60 and a beta of 0.21. HealthEquity has a twelve month low of $72.76 and a twelve month high of $105.96. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.46.

HealthEquity (NASDAQ:HQY - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $1.24 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $354.64 million for the quarter, compared to the consensus estimate of $352.02 million. The company's revenue for the quarter was up 7.2% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. Equities research analysts anticipate that HealthEquity will post 3.92 earnings per share for the current fiscal year.

Insider Activity at HealthEquity

In other HealthEquity news, EVP Michael Henry Fiore sold 3,142 shares of the business's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $95.00, for a total transaction of $298,490.00. Following the completion of the sale, the executive vice president owned 59,113 shares in the company, valued at $5,615,735. The trade was a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Delano Ladd sold 7,500 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $90.00, for a total transaction of $675,000.00. Following the sale, the executive vice president directly owned 91,141 shares in the company, valued at $8,202,690. This trade represents a 7.60% decrease in their ownership of the stock. 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 ninety days, insiders have sold 13,081 shares of company stock valued at $1,193,000. Corporate insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. William Blair Investment Management LLC acquired a new stake in HealthEquity during the fourth quarter worth about $169,956,000. Norges Bank acquired a new position in HealthEquity in the fourth quarter valued at approximately $66,927,000. AQR Capital Management LLC boosted its stake in HealthEquity by 148.5% in the second quarter. AQR Capital Management LLC now owns 1,107,448 shares of the company's stock valued at $116,016,000 after acquiring an additional 661,795 shares during the period. Wasatch Advisors LP boosted its stake in HealthEquity by 9.3% in the first quarter. Wasatch Advisors LP now owns 7,202,934 shares of the company's stock valued at $601,949,000 after acquiring an additional 613,288 shares during the period. Finally, Millennium Management LLC grew its holdings in shares of HealthEquity by 151.5% during the fourth 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 during the last quarter. 99.55% of the stock is owned by institutional investors and hedge funds.

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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