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

Key Points

• HealthEquity was upgraded by Wall Street Zen from “hold” to “buy”, adding to a generally bullish analyst backdrop. MarketBeat says the stock now carries a Moderate Buy consensus with an average price target of $110.93.
• The company reported better-than-expected fiscal Q1 results, with EPS of $1.24 versus estimates of $1.11 and revenue of $354.64 million, up 7.2% year over year.
• Despite the positive outlook, insider selling continued: a director and an EVP sold shares in pre-arranged 10b5-1 transactions, while institutional ownership remains very high at 99.55%.

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

Several other research firms have also recently weighed in on HQY. Barrington Research reaffirmed an "outperform" rating and set a $110.00 price objective on shares of HealthEquity in a research report on Friday, May 22nd. Wells Fargo & Company set a $111.00 target price on HealthEquity in a research note on Monday, June 1st. BTIG Research upped their price target on HealthEquity from $110.00 to $115.00 and gave the stock a "buy" rating in a research report on Friday. Citigroup reaffirmed a "market outperform" rating on shares of HealthEquity in a research note on Monday, June 1st. Finally, BMO Capital Markets upgraded shares of HealthEquity from a "market perform" rating to an "outperform" rating and lifted their price objective for the company from $85.00 to $105.00 in a report on Thursday, April 9th. Eleven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, HealthEquity has an average rating of "Moderate Buy" and an average price target of $110.93.

HealthEquity Trading Up 0.3%

Shares of NASDAQ:HQY opened at $94.64 on Friday. The firm has a market cap of $7.91 billion, a price-to-earnings ratio of 35.45, a PEG ratio of 1.59 and a beta of 0.21. HealthEquity has a 12 month low of $72.76 and a 12 month high of $105.96. The company's fifty day simple moving average is $90.21 and its 200 day simple moving average is $84.94. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46.

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 analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $352.02 million. The firm's revenue was up 7.2% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. As a group, research analysts forecast that HealthEquity will post 3.92 EPS for the current fiscal year.

Insider Activity at HealthEquity

In other HealthEquity news, Director Gayle Furgurson Wellborn sold 2,439 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $90.00, for a total transaction of $219,510.00. Following the transaction, the director owned 19,733 shares of the company's stock, valued at $1,775,970. The trade was a 11.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $90.00, for a total value of $675,000.00. Following the sale, the executive vice president owned 91,141 shares in the company, valued at approximately $8,202,690. This represents a 7.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 17,905 shares of company stock valued at $1,651,280. 1.60% of the stock is owned by insiders.

Institutional Trading of HealthEquity

Several institutional investors and hedge funds have recently added to or reduced their stakes in HQY. William Blair Investment Management LLC acquired a new position in shares of HealthEquity during the 4th quarter worth about $169,956,000. Wasatch Advisors LP lifted its stake in HealthEquity by 10.5% in the 2nd quarter. Wasatch Advisors LP now owns 7,960,735 shares of the company's stock valued at $719,014,000 after purchasing an additional 757,801 shares during the last quarter. Norges Bank bought a new position in HealthEquity during the fourth quarter worth about $66,927,000. AQR Capital Management LLC grew its holdings in HealthEquity by 148.5% during the second quarter. AQR Capital Management LLC now owns 1,107,448 shares of the company's stock worth $116,016,000 after purchasing an additional 661,795 shares during the period. Finally, Millennium Management LLC increased its position in HealthEquity by 151.5% during the fourth quarter. Millennium Management LLC now owns 951,563 shares of the company's stock worth $87,173,000 after buying an additional 573,283 shares during the last quarter. 99.55% of the stock is owned by institutional investors.

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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