Formula Growth Ltd. Makes New Investment in HealthEquity, Inc. $HQY

Formula Growth Ltd. bought a new position in shares of HealthEquity, Inc. (NASDAQ:HQY) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 34,417 shares of the company’s stock, valued at approximately $3,109,000. HealthEquity makes up about 1.1% of Formula Growth Ltd.’s holdings, making the stock its 25th biggest position.

A number of other institutional investors also recently modified their holdings of HQY. Public Employees Retirement System of Ohio acquired a new position in shares of HealthEquity in the second quarter valued at about $39,000. Corient Private Wealth LP bought a new position in HealthEquity during the second quarter worth about $2,476,000. Park West Asset Management LLC bought a new position in HealthEquity during the second quarter worth about $70,147,000. Atalan Capital Partners LP acquired a new stake in HealthEquity in the 2nd quarter worth about $82,667,000. Finally, Bamco Inc. NY acquired a new stake in HealthEquity in the 2nd quarter worth about $67,776,000. Institutional investors own 99.55% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Weiss Ratings upgraded shares of HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, June 5th. BTIG Research lifted 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 upgraded shares of HealthEquity from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Citigroup reiterated a “market outperform” rating on shares of HealthEquity in a research note on Monday, June 1st. Finally, Barrington Research reissued an “outperform” rating and set a $110.00 price target on shares of HealthEquity in a research report on Friday, May 22nd. Eleven research 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, HealthEquity presently has a consensus rating of “Moderate Buy” and a consensus target price of $110.93.

HealthEquity Stock Down 10.6%

HQY stock opened at $93.39 on Friday. The company has a market cap of $7.81 billion, a PE ratio of 34.98, a price-to-earnings-growth ratio of 1.76 and a beta of 0.21. The business has a 50-day simple moving average of $97.93 and a 200 day simple moving average of $87.81. HealthEquity, Inc. has a 52 week low of $72.76 and a 52 week high of $107.62. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.46.

HealthEquity (NASDAQ:HQY) last announced 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. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The firm had revenue of $350.73 million for the quarter, compared to the consensus estimate of $349.22 million. 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. Sell-side analysts anticipate that HealthEquity, Inc. will post 3.92 EPS for the current fiscal year.

Key Stories Impacting HealthEquity

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity exceeded expectations with adjusted EPS of $1.24 versus the $1.19 consensus and revenue of $350.7 million versus $349.2 million. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved: net income rose 10% to $65.6 million, net margin expanded to 19% from 18%, and adjusted EBITDA increased 11% to $167 million, with the EBITDA margin rising to 48% from 46%. HealthEquity Reports Second Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. HSA assets reached a record $37.9 billion, supporting HealthEquity’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance
• Neutral Sentiment: Revenue guidance was approximately $1.4 billion, broadly in line with analysts’ expectations, meaning the guidance increase was concentrated primarily in earnings rather than sales.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares worth approximately $798,000. The transaction occurred under a pre-arranged Rule 10b5-1 plan, reducing its signaling value, but it may still add short-term selling pressure. Adrian T. Dillon Insider Transaction
• Negative Sentiment: At roughly 35 times earnings, HQY remains priced for substantial growth. Investors may be using the strong report as an opportunity to lock in gains, particularly after the shares traded near their 52-week high.

Insider Buying and Selling

In related news, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were 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 approximately $6,527,140.95. This trade represents a 10.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,354 shares of the firm’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $95.00, for a total value of $223,630.00. Following the completion of the sale, the executive vice president directly owned 52,244 shares in the company, valued at approximately $4,963,180. This represents a 4.31% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 12,456 shares of company stock valued at $1,256,664. 1.60% of the stock is currently owned by insiders.

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.