HealthEquity (NASDAQ:HQY) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded HealthEquity (NASDAQ:HQY) from a "hold" to a buy rating in a report released Saturday.
• Analysts' consensus is a Moderate Buy with an average price target of $111.79, even as several major firms have mixed price-target revisions (KeyCorp raised its target while others lowered theirs).
• HealthEquity recently beat quarterly estimates with EPS of $0.95 vs. $0.90 and revenue of $334.6M vs. $332.5M (revenue +7.3% YoY); the stock trades around $77.96, well below the consensus target.

HealthEquity (NASDAQ:HQY - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

HQY has been the topic of several other reports. Barclays lowered their price target on HealthEquity from $118.00 to $110.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. KeyCorp increased their price target on HealthEquity from $120.00 to $125.00 and gave the company an "overweight" rating in a report on Thursday, January 8th. JPMorgan Chase & Co. lowered their price target on HealthEquity from $129.00 to $123.00 and set an "overweight" rating on the stock in a report on Wednesday, March 18th. Royal Bank Of Canada lowered their price target on HealthEquity from $110.00 to $100.00 and set an "outperform" rating on the stock in a report on Wednesday, March 18th. Finally, BTIG Research lowered their price target on HealthEquity from $130.00 to $110.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. One equities 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 issued a Sell rating to the stock. Based on data from MarketBeat, HealthEquity presently has a consensus rating of "Moderate Buy" and an average target price of $111.79.

HealthEquity Stock Performance

Shares of HQY stock opened at $77.96 on Friday. HealthEquity has a 12 month low of $72.76 and a 12 month high of $116.65. The stock has a market cap of $6.59 billion, a PE ratio of 31.69, a price-to-earnings-growth ratio of 1.53 and a beta of 0.26. The company has a current ratio of 3.27, a quick ratio of 3.27 and a debt-to-equity ratio of 0.45. The company's fifty day moving average price is $79.67 and its 200-day moving average price is $88.97.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its quarterly earnings results on Tuesday, March 17th. The company reported $0.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.90 by $0.05. The company had revenue of $334.59 million for 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%. The company's revenue was up 7.3% on a year-over-year basis. On average, equities analysts expect that HealthEquity will post 2.32 EPS for the current fiscal year.

Institutional Investors Weigh In On HealthEquity

Institutional investors and hedge funds have recently bought and sold shares of the business. Simplify Asset Management Inc. bought a new stake in HealthEquity during the third quarter valued at about $1,498,000. Capricorn Fund Managers Ltd bought a new stake in shares of HealthEquity during the fourth quarter valued at approximately $6,926,000. 12th Street Asset Management Company LLC raised 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 valued at $25,784,000 after buying an additional 145,151 shares during the last quarter. Oppenheimer Asset Management Inc. raised 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 valued at $14,741,000 after buying an additional 48,621 shares during the last quarter. Finally, Bessemer Group Inc. raised 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 valued at $33,108,000 after buying an additional 61,317 shares during the last quarter. 99.55% of the stock is owned by institutional investors.

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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