HealthEquity (NASDAQ:HQY) Share Price Breaks Below 50-Day Moving Average - What's Next?

Key Points

• HealthEquity shares fell below their 50-day moving average, trading as low as $91.00 versus the $97.70 average, with the stock last at $91.90.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $112.20, despite some recent downgrades to “Hold.”
• The company recently exceeded quarterly earnings and revenue expectations, reporting $1.24 in EPS and $350.73 million in revenue, up 95.5% year over year; institutional investors own 99.55% of shares.

Shares of HealthEquity, Inc. (NASDAQ:HQY - Get Free Report) passed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $97.70 and traded as low as $91.00. HealthEquity shares last traded at $91.90, with a volume of 893,026 shares trading hands.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Barclays boosted their target price on shares of HealthEquity from $110.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday, September 18th. BTIG Research reaffirmed a "buy" rating and issued a $115.00 price objective on shares of HealthEquity in a research report on Friday, August 28th. Weiss Ratings lowered shares of HealthEquity from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 2nd. Raymond James Financial reissued a "strong-buy" rating on shares of HealthEquity in a research report on Thursday, September 3rd. Finally, Wall Street Zen downgraded shares of HealthEquity from a "buy" rating to a "hold" rating in a research note on Saturday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $112.20.

HealthEquity Trading Up 0.9%

The stock has a market cap of $7.60 billion, a price-to-earnings ratio of 33.18, a P/E/G ratio of 1.44 and a beta of 0.24. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.99 and a quick ratio of 2.99. The company's fifty day moving average price is $97.70 and its 200-day moving average price is $90.99.

HealthEquity (NASDAQ:HQY - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.19 by $0.05. HealthEquity had a net margin of 17.36% and a return on equity of 15.33%. The company had revenue of $350.73 million during the quarter, compared to analysts' expectations of $349.22 million. HealthEquity's revenue for the quarter was up 95.5% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. On average, research analysts expect that HealthEquity, Inc. will post 3.93 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Michael Fiore sold 2,354 shares of the company's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $95.00, for a total value of $223,630.00. Following the transaction, the executive vice president directly owned 52,244 shares of the company's stock, valued at $4,963,180. This represents a 4.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adrian Dillon sold 7,632 shares of the firm's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the completion of the transaction, the director owned 62,395 shares of the company's stock, valued at $6,527,140.95. This trade represents a 10.90% 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. 1.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of HealthEquity in the second quarter worth about $1,018,621,000. William Blair Investment Management LLC purchased a new stake in shares of HealthEquity during the 2nd quarter worth about $160,158,000. Bank of America Corp DE acquired a new stake in shares of HealthEquity during the 2nd quarter valued at about $103,573,000. Atalan Capital Partners LP purchased a new position in shares of HealthEquity in the 2nd quarter valued at about $82,667,000. Finally, Jupiter Topco LLC purchased a new position in shares of HealthEquity in the 2nd quarter valued at about $78,847,000. 99.55% of the stock is currently owned by hedge funds and other institutional investors.

About HealthEquity

HealthEquity, Inc NASDAQ: HQY provides technology-enabled services for consumer-directed health and benefits accounts. The company administers health savings accounts (HSAs) and offers related products such as flexible spending accounts, health reimbursement arrangements, commuter benefits and other employee benefit programs.

Its platform is designed to help employers, benefits advisors, health plans and individuals manage benefits, make healthcare payments, access account information and invest eligible HSA funds.

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