Wall Street Zen Downgrades HealthEquity (NASDAQ:HQY) to Hold

Key Points

• Wall Street Zen downgraded HealthEquity to “hold” from “buy,” although the broader analyst consensus remains “Moderate Buy,” with 11 Buy, one Hold and one Sell rating and an average price target of $110.93.
• HealthEquity reported quarterly EPS of $1.24, beating estimates of $1.11, while revenue reached $354.64 million, up 7.2% year over year and slightly above expectations.
• The stock opened at $104.63, near its 52-week high of $106.42. Institutional investors own 99.55% of shares, while insiders have sold 17,905 shares worth approximately $1.65 million over the past three months.

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

Several other equities research analysts also recently issued reports on the company. Weiss Ratings upgraded HealthEquity from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, June 5th. Wells Fargo & Company set a $111.00 target price on HealthEquity in a report on Monday, June 1st. BTIG Research lifted their target price on HealthEquity from $110.00 to $115.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Barrington Research reiterated an "outperform" rating and set a $110.00 price target on shares of HealthEquity in a research note on Friday, May 22nd. Finally, Citigroup reissued a "market outperform" rating on shares of HealthEquity in a research report on Monday, June 1st. Eleven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $110.93.

HealthEquity Stock Performance

NASDAQ:HQY opened at $104.63 on Friday. HealthEquity has a fifty-two week low of $72.76 and a fifty-two week high of $106.42. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.44 and a current ratio of 3.44. The company has a 50 day moving average price of $93.37 and a 200 day moving average price of $85.79. The stock has a market capitalization of $8.75 billion, a P/E ratio of 39.19, a PEG ratio of 1.74 and a beta of 0.21.

HealthEquity (NASDAQ:HQY - Get Free Report) last announced its earnings results on Thursday, May 28th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.13. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The company had revenue of $354.64 million for the quarter, compared to analyst estimates of $352.02 million. The company'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. Equities research analysts forecast that HealthEquity will post 3.92 EPS for the current year.

Insider Activity

In related news, EVP Michael Henry Fiore sold 2,354 shares of the business's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $95.00, for a total transaction of $223,630.00. Following the completion of the transaction, the executive vice president directly owned 52,244 shares of the company's stock, valued at $4,963,180. The trade was a 4.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 dated 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 trade represents a 7.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 17,905 shares of company stock worth $1,651,280. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On HealthEquity

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of HealthEquity during the second quarter worth approximately $1,018,621,000. William Blair Investment Management LLC acquired a new stake in HealthEquity in the fourth quarter valued at approximately $169,956,000. Wasatch Advisors LP lifted 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 acquiring an additional 757,801 shares during the last quarter. Norges Bank purchased a new position in HealthEquity in the fourth quarter worth approximately $66,927,000. Finally, Bank of New York Mellon Corp acquired a new position in HealthEquity during the 2nd quarter worth approximately $60,177,000. 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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