BTIG Research Reaffirms “Buy” Rating for HealthEquity (NASDAQ:HQY)

HealthEquity (NASDAQ:HQY)‘s stock had its “buy” rating restated by stock analysts at BTIG Research in a research report issued on Friday,Benzinga reports. They currently have a $115.00 price target on the stock. BTIG Research’s target price would indicate a potential upside of 23.14% from the company’s current price.

Several other equities analysts also recently commented on the company. Royal Bank Of Canada upped their price objective on HealthEquity from $100.00 to $108.00 and gave the company an “outperform” rating in a research note on Wednesday, June 3rd. Barrington Research restated an “outperform” rating and issued a $110.00 target price on shares of HealthEquity in a research note on Friday, May 22nd. Telsey Advisory Group set a $111.00 price target on HealthEquity in a research report on Friday. Weiss Ratings upgraded HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Finally, Citigroup restated a “market outperform” rating on shares of HealthEquity in a research note on Friday. 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.com, the company has an average rating of “Moderate Buy” and an average price target of $110.93.

HealthEquity Price Performance

Shares of NASDAQ:HQY opened at $93.39 on Friday. The company has a market capitalization of $7.81 billion, a P/E ratio of 34.98, a price-to-earnings-growth ratio of 1.76 and a beta of 0.21. The company’s 50-day moving average is $97.93 and its 200 day moving average is $87.81. The company has a debt-to-equity ratio of 0.46, a quick ratio of 3.44 and a current ratio of 3.44. HealthEquity has a fifty-two week low of $72.76 and a fifty-two week high of $107.62.

HealthEquity (NASDAQ:HQY) last posted its quarterly earnings data on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.19 by $0.05. The business had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The business’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. On average, equities research analysts forecast that HealthEquity will post 3.92 earnings per share for the current year.

Insiders Place Their Bets

In other HealthEquity news, EVP Michael Henry Fiore sold 2,354 shares of the 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 sale, the executive vice president owned 52,244 shares in the company, valued at $4,963,180. This represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adrian T. Dillon sold 7,632 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the completion of the transaction, the director directly owned 62,395 shares of the company’s stock, valued at $6,527,140.95. The trade was a 10.90% decrease in their ownership of the stock. 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 have sold a total of 12,456 shares of company stock worth $1,256,664 in the last three months. Insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC bought a new position in shares of HealthEquity in the second quarter valued at approximately $306,000. Arrowstreet Capital Limited Partnership bought a new stake in HealthEquity during the 2nd quarter worth approximately $4,747,000. Marshall Wace LLP bought a new stake in HealthEquity during the 2nd quarter worth approximately $5,483,000. Amundi lifted its stake in HealthEquity by 9.3% in the 2nd quarter. Amundi now owns 30,203 shares of the company’s stock worth $3,059,000 after purchasing an additional 2,574 shares in the last quarter. Finally, Jump Financial LLC bought a new position in HealthEquity in the 2nd quarter valued at $449,000. Hedge funds and other institutional investors own 99.55% of the company’s stock.

HealthEquity News Roundup

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity reported quarterly EPS of $1.24, ahead of the $1.19 consensus estimate, while revenue reached $350.7 million, slightly above expectations. 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 adjusted EBITDA increasing 11% to $167 million. Net and adjusted EBITDA margins also expanded, indicating operating leverage. 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 further support the company’s long-term growth prospects. HealthEquity Raises Fiscal 2027 Guidance
• Neutral Sentiment: Fiscal 2027 revenue guidance was approximately $1.4 billion, broadly in line with expectations. This suggests the guidance upgrade was driven mainly by improved earnings outlook rather than a meaningful increase in projected sales.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares for approximately $798,000, reducing his holdings by 10.9%. The sale was made under a pre-arranged Rule 10b5-1 plan, which limits its bearish signal, but it may still contribute to near-term selling pressure. HealthEquity Director Stock Sale
• Negative Sentiment: HQY trades at roughly 35 times earnings after approaching its 52-week high. Investors may be taking profits or demanding stronger upside after the earnings beat, particularly because revenue guidance was not raised significantly.

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.