HealthEquity (NASDAQ:HQY) Trading 4.4% Higher Following Strong Earnings

HealthEquity, Inc. (NASDAQ:HQY)’s stock price rose 4.4% during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $97.77 and last traded at $97.52. Approximately 787,151 shares were traded during mid-day 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 for the quarter, beating the consensus estimate of $1.19 by $0.05. The firm had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.The business’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.

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.

Wall Street Analysts Forecast Growth

HQY has been the topic of a number of research reports. Royal Bank Of Canada boosted their target price on shares of HealthEquity from $100.00 to $108.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 3rd. BTIG Research restated a “buy” rating and issued a $115.00 price target on shares of HealthEquity in a research report on Friday. Barrington Research restated an “outperform” rating and set a $110.00 price objective on shares of HealthEquity in a report on Friday, May 22nd. Citigroup reaffirmed a “market outperform” rating on shares of HealthEquity in a research report on Friday. Finally, Citizens Jmp increased their target price on shares of HealthEquity from $110.00 to $111.00 and gave the company a “market outperform” rating in a research note on Monday, June 1st. Eleven 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’s stock. According to data from MarketBeat, HealthEquity presently has a consensus rating of “Moderate Buy” and an average price target of $110.93.

Insiders Place Their Bets

In related news, EVP Michael Henry Fiore sold 2,470 shares of the firm’s stock in a transaction on Thursday, July 2nd. The stock was 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 directly owned 56,643 shares of the company’s stock, valued at $5,381,085. This trade represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 HealthEquity 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 sale, the director owned 62,395 shares in the company, valued at $6,527,140.95. This 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 sold 12,456 shares of company stock valued at $1,256,664 over the last 90 days. 1.60% of the stock is currently owned by corporate insiders.

Institutional Trading of HealthEquity

Several institutional investors have recently made changes to their positions in HQY. Oxbow Advisors LLC acquired a new stake in HealthEquity during the first quarter valued at approximately $3,147,000. Deutsche Bank AG acquired a new position in shares of HealthEquity in the 2nd quarter worth approximately $11,986,000. Maridea Wealth Management LLC bought a new position in shares of HealthEquity during the 2nd quarter worth approximately $2,753,000. Westfield Capital Management Co. LP lifted its position in shares of HealthEquity by 13.7% during the 4th quarter. Westfield Capital Management Co. LP now owns 1,952,452 shares of the company’s stock worth $178,864,000 after buying an additional 235,794 shares during the period. Finally, Future Fund LLC boosted its stake in HealthEquity by 40.9% in the 4th quarter. Future Fund LLC now owns 44,317 shares of the company’s stock valued at $4,060,000 after buying an additional 12,854 shares in the last quarter. 99.55% of the stock is currently owned by institutional investors and hedge funds.

HealthEquity Trading Up 3.6%

The company has a 50 day moving average of $97.93 and a 200 day moving average of $87.81. The firm has a market cap of $8.09 billion, a price-to-earnings ratio of 36.23, a price-to-earnings-growth ratio of 1.76 and a beta of 0.21. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.46.

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.