HealthEquity’s (HQY) “Buy” Rating Reiterated at BTIG Research

BTIG Research reaffirmed their buy rating on shares of HealthEquity (NASDAQ:HQY) in a research report released on Friday morning,Benzinga reports. They currently have a $115.00 price target on the stock.

Other equities analysts also recently issued reports about the stock. KeyCorp restated an “overweight” rating on shares of HealthEquity in a research note on Tuesday, May 26th. Telsey Advisory Group set a $111.00 price objective on shares of HealthEquity in a report on Friday. Citigroup restated a “market outperform” rating on shares of HealthEquity in a research report on Friday. Weiss Ratings raised shares of HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, June 5th. Finally, Wells Fargo & Company set a $111.00 price target on shares of HealthEquity in a research report on Monday, June 1st. Eleven 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. According to data from MarketBeat.com, HealthEquity currently has an average rating of “Moderate Buy” and a consensus price target of $110.93.

HealthEquity Price Performance

Shares of NASDAQ HQY opened at $96.37 on Friday. The firm has a market cap of $7.97 billion, a P/E ratio of 34.79, a price-to-earnings-growth ratio of 1.53 and a beta of 0.21. The business’s 50 day moving average is $98.16 and its 200-day moving average is $87.93. The company has a current ratio of 2.99, a quick ratio of 2.99 and a debt-to-equity ratio of 0.47. HealthEquity has a 1-year low of $72.76 and a 1-year high of $107.62.

HealthEquity (NASDAQ:HQY) last released its quarterly earnings results on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.05. HealthEquity had a return on equity of 15.33% and a net margin of 17.36%.The business had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. The firm’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. Equities research analysts predict that HealthEquity will post 3.92 earnings per share for the current year.

Insider Activity

In other news, EVP Michael Henry Fiore sold 2,354 shares of the business’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $95.00, for a total value of $223,630.00. Following the completion of the transaction, the executive vice president directly owned 52,244 shares in the company, valued at approximately $4,963,180. The trade was a 4.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adrian T. Dillon sold 7,632 shares of the company’s stock in a transaction that occurred 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 sale, the director directly owned 62,395 shares of the company’s stock, valued at approximately $6,527,140.95. This trade represents a 10.90% 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. Insiders have sold 12,456 shares of company stock valued at $1,256,664 in the last ninety days. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Acumen Wealth Advisors LLC bought a new stake in shares of HealthEquity during the 4th quarter worth $27,000. Aster Capital Management DIFC Ltd bought a new position in HealthEquity in the fourth quarter valued at about $28,000. Caitong International Asset Management Co. Ltd increased its position in HealthEquity by 1,723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company’s stock worth $28,000 after purchasing an additional 293 shares in the last quarter. Leonteq Securities AG increased its position in HealthEquity by 159.9% during the 1st quarter. Leonteq Securities AG now owns 382 shares of the company’s stock worth $32,000 after purchasing an additional 235 shares in the last quarter. Finally, Silvant Capital Management LLC bought a new position in HealthEquity in the 2nd quarter valued at approximately $35,000. 99.55% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about HealthEquity

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity exceeded expectations with adjusted earnings of $1.24 per share versus the $1.19 consensus, while revenue reached $350.7 million, slightly above estimates. Revenue increased 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 grew 11% to $167 million, while its margin increased to 48% from 46%. HealthEquity Second-Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion provide additional support for the company’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance
• Positive Sentiment: BTIG Research reaffirmed its “buy” rating and raised its price target to $115. Another analysis indicated that HQY could be approximately 19% undervalued after the guidance increase, reinforcing the bullish interpretation of the earnings update. BTIG Research Rating HealthEquity Could Be Undervalued
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.4 billion was broadly in line with expectations, so the guidance improvement was driven mainly by stronger anticipated earnings and margins.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares valued at approximately $798,000, reducing his position by 10.9%. The sale was executed under a pre-arranged Rule 10b5-1 plan, which reduces its negative signaling value but could still attract investor attention. HealthEquity Director Stock Sale
• Negative Sentiment: HQY trades at a premium valuation of roughly 35 times earnings. After the recent advance toward its 52-week high, some investors may lock in gains, potentially tempering the stock’s reaction to otherwise favorable fundamentals.

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.