HealthEquity (NASDAQ:HQY) Director Sells 7,632 Shares

Key Points

• Director Adrian Dillon sold 7,632 shares of HealthEquity at an average price of $104.61, generating approximately $798,384. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan and reduced his direct ownership by 10.9%.
• HealthEquity’s fiscal second-quarter results exceeded expectations, with EPS of $1.24 and revenue of $350.7 million; revenue increased 95.5% year over year. The company raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73.
• Despite the earnings beat, shares fell 10.6% to $93.39 in heavy trading. Analysts maintain a “Moderate Buy” consensus with an average price target of $110.93, while institutional investors own 99.55% of the stock.

HealthEquity, Inc. (NASDAQ:HQY - Get Free Report) Director Adrian Dillon sold 7,632 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $104.61, for a total transaction of $798,383.52. Following the sale, the director directly owned 62,395 shares of the company's stock, valued at $6,527,140.95. This represents a 10.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

HealthEquity Trading Down 10.6%

Shares of HQY stock traded down $11.03 on Thursday, reaching $93.39. 3,219,453 shares of the stock were exchanged, compared to its average volume of 960,116. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46. The stock has a market cap of $7.81 billion, a P/E ratio of 34.98, a price-to-earnings-growth ratio of 1.77 and a beta of 0.21. The firm has a 50 day moving average of $97.77 and a two-hundred day moving average of $87.71. HealthEquity, Inc. has a 1-year low of $72.76 and a 1-year high of $107.62.

HealthEquity (NASDAQ:HQY - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.19 by $0.05. The firm had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The business's revenue for the quarter was up 95.5% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. On average, research analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HQY. BlackRock Inc. acquired a new stake in shares of HealthEquity in the 2nd quarter valued at about $1,018,621,000. California State Teachers Retirement System grew its stake in HealthEquity by 8,679.7% in the second quarter. California State Teachers Retirement System now owns 8,832,754 shares of the company's stock worth $797,774,000 after purchasing an additional 8,732,150 shares in the last quarter. Wasatch Advisors LP grew its stake in HealthEquity by 10.5% in the second quarter. Wasatch Advisors LP now owns 7,960,735 shares of the company's stock worth $719,014,000 after purchasing an additional 757,801 shares in the last quarter. Geode Capital Management LLC increased its holdings in HealthEquity by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 2,201,232 shares of the company's stock valued at $201,685,000 after buying an additional 5,671 shares during the last quarter. Finally, Westfield Capital Management Co. LP increased its holdings in HealthEquity by 13.7% in the fourth quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company's stock valued at $178,864,000 after buying an additional 235,794 shares during the last quarter. 99.55% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Citigroup reaffirmed a "market outperform" rating on shares of HealthEquity in a research report on Monday, June 1st. Royal Bank Of Canada upped their price target on shares of HealthEquity from $100.00 to $108.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. Wells Fargo & Company set a $111.00 price objective on HealthEquity in a research report on Monday, June 1st. Wall Street Zen upgraded HealthEquity from a "hold" rating to a "buy" rating in a research note on Saturday, August 22nd. Finally, BTIG Research increased their target price on HealthEquity from $110.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $110.93.

Key HealthEquity News

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity reported fiscal Q2 adjusted earnings of $1.24 per share, above the $1.19 analyst consensus, while revenue of $350.7 million also exceeded expectations. EPS increased from $1.08 a year earlier. HealthEquity Q2 earnings and revenues top estimates
• Positive Sentiment: Profitability strengthened: net income rose 10% to $65.6 million, and adjusted EBITDA increased 11% to $167.0 million. EBITDA margin expanded to 48% from 46% a year earlier. HealthEquity fiscal second-quarter financial results
• Positive Sentiment: The company raised fiscal 2027 adjusted EPS guidance to $4.66-$4.73, above the $4.56 consensus estimate. HSA assets reached a record $37.9 billion, supporting future fee and interest revenue potential. HealthEquity raises fiscal 2027 guidance
• Neutral Sentiment: Fiscal 2027 revenue guidance was approximately $1.4 billion, generally consistent with analyst expectations. The earnings call provided additional context on operating trends and the outlook. HealthEquity Q2 2027 earnings call transcript
• Negative Sentiment: The stock fell in heavy trading after the results, suggesting investors may have expected an even stronger outlook or viewed the revenue forecast as insufficient relative to the earnings beat. HealthEquity’s valuation, at roughly 35 times earnings, may also be increasing sensitivity to guidance and execution.

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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