HealthEquity (NASDAQ:HQY) Shares Gap Down – Time to Sell?

Shares of HealthEquity, Inc. (NASDAQ:HQY) gapped down before the market opened on Friday . The stock had previously closed at $98.51, but opened at $95.56. HealthEquity shares last traded at $94.18, with a volume of 255,059 shares traded.

Analysts Set New Price Targets

A number of brokerages recently weighed in on HQY. The Goldman Sachs Group lowered shares of HealthEquity from a “neutral” rating to a “sell” rating and set a $89.00 target price for the company. in a research note on Friday. Barrington Research restated an “outperform” rating and issued a $125.00 price target on shares of HealthEquity in a report on Thursday, December 4th. BMO Capital Markets reaffirmed a “market perform” rating on shares of HealthEquity in a research report on Thursday, December 4th. Barclays initiated coverage on HealthEquity in a report on Monday, December 8th. They set an “overweight” rating and a $118.00 price objective for the company. Finally, Wall Street Zen upgraded HealthEquity from a “hold” rating to a “buy” rating in a research note on Saturday, January 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $119.60.

HealthEquity Price Performance

The stock has a market cap of $8.13 billion, a price-to-earnings ratio of 43.65, a price-to-earnings-growth ratio of 1.41 and a beta of 0.20. The company has a debt-to-equity ratio of 0.46, a quick ratio of 4.13 and a current ratio of 4.13. The company has a 50-day simple moving average of $97.05 and a two-hundred day simple moving average of $95.31.

HealthEquity (NASDAQ:HQY) last released its earnings results on Wednesday, December 3rd. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.11. HealthEquity had a net margin of 14.86% and a return on equity of 12.94%. The business had revenue of $322.16 million during the quarter, compared to analysts’ expectations of $320.92 million. During the same period last year, the business earned $0.78 earnings per share. The firm’s revenue was up 7.2% on a year-over-year basis. HealthEquity has set its FY 2026 guidance at 3.870-3.950 EPS. As a group, equities research analysts forecast that HealthEquity, Inc. will post 2.32 EPS for the current year.

Insider Activity

In other news, EVP Elimelech Rosner sold 10,959 shares of HealthEquity stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $95.45, for a total transaction of $1,046,036.55. Following the completion of the transaction, the executive vice president directly owned 45,742 shares in the company, valued at approximately $4,366,073.90. The trade was a 19.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Delano Ladd sold 1,500 shares of the stock in a transaction on Friday, December 19th. The shares were sold at an average price of $94.72, for a total value of $142,080.00. Following the completion of the sale, the executive vice president owned 73,979 shares in the company, valued at approximately $7,007,290.88. This trade represents a 1.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,459 shares of company stock valued at $1,483,062 over the last quarter. 1.50% of the stock is currently owned by company insiders.

Institutional Trading of HealthEquity

Hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC lifted its holdings in shares of HealthEquity by 232.4% during the second quarter. Farther Finance Advisors LLC now owns 246 shares of the company’s stock worth $26,000 after buying an additional 172 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in HealthEquity during the second quarter worth about $33,000. True Wealth Design LLC raised its stake in HealthEquity by 3,522.2% in the 3rd quarter. True Wealth Design LLC now owns 326 shares of the company’s stock worth $31,000 after purchasing an additional 317 shares in the last quarter. Cullen Frost Bankers Inc. boosted its holdings in HealthEquity by 172.3% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 354 shares of the company’s stock valued at $37,000 after purchasing an additional 224 shares during the period. Finally, Sellwood Investment Partners LLC bought a new stake in HealthEquity in the 2nd quarter valued at about $58,000. Institutional investors and hedge funds own 99.55% of the company’s stock.

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.