HealthEquity (NASDAQ:HQY) Shares Gap Down – Should You Sell?

HealthEquity, Inc. (NASDAQ:HQY)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $104.42, but opened at $97.16. HealthEquity shares last traded at $89.9870, with a volume of 288,496 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. BTIG Research raised their price target on shares of HealthEquity from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Wall Street Zen raised HealthEquity from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Barrington Research reiterated an “outperform” rating and set a $110.00 target price on shares of HealthEquity in a research note on Friday, May 22nd. Wells Fargo & Company set a $111.00 target price on HealthEquity in a report on Monday, June 1st. Finally, KeyCorp restated an “overweight” rating on shares of HealthEquity in a research note on Tuesday, May 26th. Eleven equities research 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’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $110.93.

HealthEquity Price Performance

The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46. The firm’s fifty day moving average price is $97.77 and its two-hundred day moving average price is $87.71. The stock has a market capitalization of $7.56 billion, a PE ratio of 33.90, a PEG ratio of 1.77 and a beta of 0.21.

HealthEquity (NASDAQ:HQY) last issued its earnings results on Thursday, August 27th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.05. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The company had revenue of $350.73 million for the quarter, compared to analysts’ expectations of $349.22 million. The company’s quarterly revenue 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 analysts predict that HealthEquity, Inc. will post 3.92 earnings per share for the current year.

Insider Activity

In related news, EVP Michael Henry Fiore sold 3,142 shares of HealthEquity stock in a transaction on Friday, May 29th. The stock was sold at an average price of $95.00, for a total value of $298,490.00. Following the completion of the sale, the executive vice president owned 59,113 shares of the company’s stock, valued at $5,615,735. The trade was a 5.05% decrease in their ownership of the stock. The sale 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. In the last quarter, insiders sold 7,966 shares of company stock valued at $756,770. Company insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of HQY. Fifth Third Wealth Advisors LLC increased its stake in HealthEquity by 4.2% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 2,872 shares of the company’s stock worth $240,000 after buying an additional 116 shares in the last quarter. Truist Financial Corp lifted its position in shares of HealthEquity by 4.9% in the fourth quarter. Truist Financial Corp now owns 2,537 shares of the company’s stock valued at $232,000 after acquiring an additional 119 shares in the last quarter. Fiduciary Trust Co boosted its stake in shares of HealthEquity by 3.4% in the third quarter. Fiduciary Trust Co now owns 3,669 shares of the company’s stock worth $348,000 after acquiring an additional 120 shares during the last quarter. Larson Financial Group LLC boosted its stake in shares of HealthEquity by 24.4% in the third quarter. Larson Financial Group LLC now owns 628 shares of the company’s stock worth $60,000 after acquiring an additional 123 shares during the last quarter. Finally, Merit Financial Group LLC increased its position in shares of HealthEquity by 8.9% during the third quarter. Merit Financial Group LLC now owns 2,112 shares of the company’s stock worth $200,000 after purchasing an additional 172 shares in the last quarter. Institutional investors own 99.55% of the company’s stock.

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.