HealthEquity (NASDAQ: HQY) received an upgrade from Wall Street Zen, moving from a “hold” rating to a “buy” rating, as analysts express confidence in the company’s performance. This change follows a strong earnings report released on December 3, 2023, where HealthEquity surpassed analysts’ expectations.
Several brokerage firms have also provided insights into HealthEquity’s stock. On December 4, JMP Securities set a price target of $122.00 for the shares, while BMO Capital Markets maintained a “market perform” rating. Barrington Research reaffirmed an “outperform” rating with a target price of $125.00. Additionally, Citigroup issued an “outperform” rating, and Barclays began coverage on December 8 with an “overweight” rating and a target price of $118.00.
Analysts’ ratings reflect a generally positive outlook for the stock, with two analysts recommending a Strong Buy, twelve advising a Buy, and three assigning a Hold rating. According to data from MarketBeat.com, HealthEquity holds a consensus rating of “Moderate Buy” and a target price averaging $120.27.
Strong Earnings Performance
In its latest earnings report, HealthEquity announced earnings of $1.01 per share for the quarter, exceeding analysts’ consensus estimates of $0.90 by $0.11. The company reported a revenue of $322.16 million, slightly above the expected $320.92 million. This represents a 7.2% increase in quarterly revenue compared to the same period last year, when the company earned $0.78 per share.
HealthEquity has set its guidance for the fiscal year 2026 at earnings between $3.870 and $3.950 per share. Analysts expect the company to post earnings of $2.32 per share for the current fiscal year.
Insider Transactions and Institutional Investments
Recent insider trading activity has raised interest among investors. On December 19, Executive Vice President Delano Ladd sold 1,500 shares at an average price of $94.72, totaling $142,080.00. Following this transaction, Ladd retains 73,979 shares valued at approximately $7 million, reflecting a 1.99% decrease in ownership.
Another executive, Elimelech Rosner, sold 10,959 shares on December 18 at an average of $95.45, amounting to around $1.05 million. This sale reduced Rosner’s ownership to 45,742 shares valued at approximately $4.37 million, indicating a decline of 19.33% in their position. Over the last three months, insiders have sold a total of 17,240 shares worth approximately $1.64 million. Corporate insiders now hold 1.50% of the company’s stock.
Institutional investors have been active as well. Farther Finance Advisors LLC increased its stake in HealthEquity by 232.4% during the second quarter, acquiring an additional 172 shares. True Wealth Design LLC significantly raised its stake by 3,522.2% in the third quarter, now holding 326 shares. Other notable increases include Cullen Frost Bankers Inc., which raised its position by 172.3% during the same period.
Overall, hedge funds and other institutional investors control 99.55% of HealthEquity’s stock, reflecting strong institutional confidence in the company’s future prospects.
Founded in 2002 and headquartered in Draper, Utah, HealthEquity is a leading administrator of consumer-directed health accounts in the United States. The company specializes in health savings accounts (HSAs) and provides services such as flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs). Through its technology-driven platform, HealthEquity aims to streamline account management and enhance healthcare spending transparency for employers and individuals alike.
