HealthEquity (NASDAQ:HQY) Shares Gap Down After Insider Selling

HealthEquity, Inc. (NASDAQ:HQY) gapped down prior to trading on Thursday following insider selling activity. 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.

Specifically, Director Adrian T. Dillon sold 7,632 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the transaction, the director directly owned 62,395 shares in the company, valued at $6,527,140.95. This represents a 10.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

HQY has been the subject of a number of research analyst reports. BTIG Research reiterated a “buy” rating and set a $115.00 price target on shares of HealthEquity in a research report on Friday. Wells Fargo & Company set a $111.00 price objective on shares of HealthEquity in a research report on Monday, June 1st. KeyCorp reaffirmed an “overweight” rating on shares of HealthEquity in a research note on Tuesday, May 26th. Citizens Jmp lifted their target price on shares of HealthEquity from $110.00 to $111.00 and gave the company a “market outperform” rating in a research report on Monday, June 1st. Finally, Royal Bank Of Canada boosted their price target on shares of HealthEquity from $100.00 to $108.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd. Eleven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $110.93.

Key Headlines Impacting 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.

HealthEquity Stock Up 3.2%

The firm has a market capitalization of $8.06 billion, a PE ratio of 34.79, a PEG ratio of 1.57 and a beta of 0.21. The business’s 50 day simple moving average is $98.16 and its 200 day simple moving average is $87.87. The company has a current ratio of 2.99, a quick ratio of 3.44 and a debt-to-equity ratio of 0.47.

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, beating the consensus estimate of $1.19 by $0.05. The business had revenue of $350.73 million during the quarter, compared to analyst estimates of $349.22 million. HealthEquity had a return on equity of 15.33% and a net margin of 17.36%.The firm’s 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 research analysts forecast that HealthEquity, Inc. will post 3.92 earnings per share for the current year.

Institutional Trading of HealthEquity

Institutional investors have recently bought and sold shares of the stock. Corient Private Wealth LP raised its holdings in HealthEquity by 8.6% in the 2nd quarter. Corient Private Wealth LP now owns 29,789 shares of the company’s stock valued at $2,691,000 after acquiring an additional 2,364 shares during the last quarter. Amundi grew its position in shares of HealthEquity by 33.6% in the second quarter. Amundi now owns 90,327 shares of the company’s stock valued at $8,158,000 after purchasing an additional 22,735 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of HealthEquity in the second quarter valued at approximately $2,619,000. California State Teachers Retirement System boosted its stake in HealthEquity by 8,679.7% during the second quarter. California State Teachers Retirement System now owns 8,832,754 shares of the company’s stock worth $797,774,000 after buying an additional 8,732,150 shares during the last quarter. Finally, HB Wealth Management LLC grew its holdings in HealthEquity by 70.2% in the 2nd quarter. HB Wealth Management LLC now owns 4,671 shares of the company’s stock valued at $422,000 after buying an additional 1,927 shares in the last quarter. 99.55% of the stock is currently owned by institutional investors.

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.