HealthEquity (NASDAQ:HQY) Shares Up 4.4% Following Strong Earnings

HealthEquity, Inc. (NASDAQ:HQY)’s stock price rose 4.4% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $97.77 and last traded at $97.52. Approximately 787,151 shares changed hands during trading, a decline of 18% from the average daily volume of 958,305 shares. The stock had previously closed at $93.39.

The company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.19 by $0.05. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The business had revenue of $350.73 million during the quarter, compared to analysts’ expectations of $349.22 million. The company’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.

HealthEquity News Summary

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity reported adjusted earnings of $1.24 per share, exceeding the $1.19 consensus estimate, while revenue reached $350.7 million, slightly above expectations. Revenue grew 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with net income rising 10% to $65.6 million and net margin expanding to 19% from 18%. Adjusted EBITDA increased 11% to $167 million, while the EBITDA margin widened to 48% from 46%. HealthEquity Second-Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion also reinforce the company’s recurring-growth opportunity. HealthEquity Raises Fiscal 2027 Guidance
• Positive Sentiment: BTIG Research reaffirmed its Buy rating and raised its price target to $115, implying meaningful upside from recent trading levels. The endorsement may support investor confidence following the earnings report. BTIG Research Rating Update
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.4 billion was broadly in line with expectations, suggesting the guidance improvement was driven mainly by earnings and margin strength rather than a major sales forecast increase.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares for approximately $798,000, reducing his position by 10.9%. Because the transaction was made under a pre-arranged Rule 10b5-1 plan, its negative signaling value is limited, although it could contribute to near-term selling pressure. HealthEquity Director Stock Sale
• Negative Sentiment: With HQY trading at roughly 35–36 times earnings and below its recent high, valuation remains demanding. Investors could take profits if future growth or margins fail to justify the premium multiple.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on HQY shares. Citizens Jmp raised their price target on HealthEquity from $110.00 to $111.00 and gave the company a “market outperform” rating in a report on Monday, June 1st. Barrington Research reissued an “outperform” rating and issued a $110.00 price objective on shares of HealthEquity in a research note on Friday, May 22nd. Weiss Ratings upgraded HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Citigroup reaffirmed a “market outperform” rating on shares of HealthEquity in a report on Friday. Finally, Wall Street Zen upgraded shares of HealthEquity from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Eleven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $110.93.

Insiders Place Their Bets

In other news, Director Adrian T. Dillon sold 7,632 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total transaction of $798,383.52. Following the transaction, the director 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 legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,470 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $95.00, for a total value of $234,650.00. Following the completion of the transaction, the executive vice president owned 56,643 shares in the company, valued at approximately $5,381,085. This represents a 4.18% 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. Insiders sold a total of 12,456 shares of company stock worth $1,256,664 over the last quarter. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of HealthEquity

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fifth Third Wealth Advisors LLC lifted its position in HealthEquity by 4.2% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 2,872 shares of the company’s stock valued at $240,000 after purchasing an additional 116 shares during the period. Truist Financial Corp grew its position in shares of HealthEquity by 4.9% during the 4th quarter. Truist Financial Corp now owns 2,537 shares of the company’s stock worth $232,000 after buying an additional 119 shares during the period. Fiduciary Trust Co raised its stake in shares of HealthEquity by 3.4% during the third quarter. Fiduciary Trust Co now owns 3,669 shares of the company’s stock worth $348,000 after buying an additional 120 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of HealthEquity by 24.4% during the third quarter. Larson Financial Group LLC now owns 628 shares of the company’s stock worth $60,000 after buying an additional 123 shares during the last quarter. Finally, Merit Financial Group LLC lifted its holdings in HealthEquity by 8.9% in the third quarter. Merit Financial Group LLC now owns 2,112 shares of the company’s stock valued at $200,000 after buying an additional 172 shares during the period. 99.55% of the stock is owned by institutional investors.

HealthEquity Trading Up 3.6%

The stock has a market capitalization of $8.09 billion, a P/E ratio of 36.23, a PEG ratio of 1.76 and a beta of 0.21. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.44 and a quick ratio of 3.44. The business’s 50 day simple moving average is $97.93 and its 200-day simple moving average is $87.81.

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.