HealthEquity (NASDAQ:HQY) Releases FY 2027 Earnings Guidance

HealthEquity (NASDAQ:HQY) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.660-4.730 for the period, compared to the consensus estimate of 4.560. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion.

HealthEquity Price Performance

NASDAQ HQY opened at $96.37 on Friday. The business’s fifty day moving average is $98.16 and its 200 day moving average is $87.87. HealthEquity has a fifty-two week low of $72.76 and a fifty-two week high of $107.62. The company has a debt-to-equity ratio of 0.47, a quick ratio of 3.44 and a current ratio of 2.99. The company has a market capitalization of $8.06 billion, a PE ratio of 34.79, a price-to-earnings-growth ratio of 1.57 and a beta of 0.21.

HealthEquity (NASDAQ:HQY) last issued its quarterly 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 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 analysts’ expectations of $349.22 million. The company’s revenue was up 95.5% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. Sell-side analysts predict that HealthEquity will post 3.92 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on HQY shares. Weiss Ratings upgraded shares of HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Wells Fargo & Company set a $111.00 price objective on shares of HealthEquity in a research note on Monday, June 1st. BTIG Research restated a “buy” rating and set a $115.00 price objective on shares of HealthEquity in a research report on Friday. Barrington Research reaffirmed an “outperform” rating and issued a $110.00 target price on shares of HealthEquity in a report on Friday, May 22nd. Finally, Citizens Jmp upped their price objective on HealthEquity from $110.00 to $111.00 and gave the stock a “market outperform” rating in a research note on Monday, June 1st. Eleven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $110.93.

Insiders Place Their Bets

In other HealthEquity news, EVP Michael Henry Fiore sold 2,354 shares of the business’s stock in a transaction 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 sale, the executive vice president owned 52,244 shares in the company, valued at $4,963,180. The trade was a 4.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $104.61, for a total transaction of $798,383.52. Following the transaction, the director directly 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. 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 quarter, insiders sold 12,456 shares of company stock worth $1,256,664. 1.60% of the stock is currently owned by insiders.

Key HealthEquity News

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.

Institutional Trading of HealthEquity

A number of large investors have recently added to or reduced their stakes in the company. Acumen Wealth Advisors LLC bought a new position in shares of HealthEquity during the 4th quarter valued at approximately $27,000. Aster Capital Management DIFC Ltd purchased a new position in shares of HealthEquity in the fourth quarter valued at $28,000. Caitong International Asset Management Co. Ltd increased its position in HealthEquity by 1,723.5% in the fourth 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 during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in HealthEquity by 190.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 604 shares of the company’s stock worth $55,000 after purchasing an additional 396 shares during the last quarter. Finally, Larson Financial Group LLC raised its stake in HealthEquity by 24.4% during the third quarter. Larson Financial Group LLC now owns 628 shares of the company’s stock valued at $60,000 after purchasing an additional 123 shares in the last quarter. Institutional investors 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.