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

HealthEquity, Inc. (NASDAQ:HQY) shares gapped down before the market opened on Friday . The stock had previously closed at $98.51, but opened at $95.56. HealthEquity shares last traded at $94.18, with a volume of 255,059 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on HQY shares. JMP Securities set a $122.00 price objective on shares of HealthEquity in a research note on Thursday, December 4th. Citizens Jmp raised their target price on HealthEquity from $117.00 to $122.00 and gave the company a “market outperform” rating in a report on Thursday, December 4th. Citigroup reaffirmed an “outperform” rating on shares of HealthEquity in a research report on Thursday, December 4th. KeyCorp increased their price objective on HealthEquity from $120.00 to $125.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Wall Street Zen downgraded HealthEquity from a “buy” rating to a “hold” rating in a research note on Sunday. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $119.60.

HealthEquity Stock Down 4.4%

The company has a debt-to-equity ratio of 0.46, a current ratio of 4.13 and a quick ratio of 4.13. The stock has a market capitalization of $8.04 billion, a P/E ratio of 43.19, a price-to-earnings-growth ratio of 1.36 and a beta of 0.20. The firm has a 50 day moving average of $97.04 and a 200-day moving average of $95.20.

HealthEquity (NASDAQ:HQY) last announced its quarterly earnings data on Wednesday, December 3rd. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.90 by $0.11. The company had revenue of $322.16 million during the quarter, compared to the consensus estimate of $320.92 million. HealthEquity had a return on equity of 12.94% and a net margin of 14.86%.The company’s quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter last year, the company earned $0.78 EPS. HealthEquity has set its FY 2026 guidance at 3.870-3.950 EPS. On average, equities research analysts expect that HealthEquity, Inc. will post 2.32 earnings per share for the current fiscal year.

Insider Buying and Selling at HealthEquity

In other news, EVP Delano Ladd sold 1,500 shares of the stock in a transaction on Friday, December 19th. The stock was sold at an average price of $94.72, for a total transaction of $142,080.00. Following the sale, the executive vice president owned 73,979 shares in the company, valued at approximately $7,007,290.88. This represents a 1.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Elimelech Rosner sold 10,959 shares of the stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $95.45, for a total transaction of $1,046,036.55. Following the sale, the executive vice president directly owned 45,742 shares in the company, valued at approximately $4,366,073.90. This represents a 19.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 15,459 shares of company stock worth $1,483,062. 1.50% of the stock is owned by insiders.

Institutional Trading of HealthEquity

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC lifted its stake in shares of HealthEquity by 232.4% in the 2nd quarter. Farther Finance Advisors LLC now owns 246 shares of the company’s stock valued at $26,000 after purchasing an additional 172 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in HealthEquity in the second quarter valued at about $33,000. True Wealth Design LLC lifted its stake in HealthEquity by 3,522.2% in the third quarter. True Wealth Design LLC now owns 326 shares of the company’s stock valued at $31,000 after buying an additional 317 shares during the period. Cullen Frost Bankers Inc. boosted its holdings in HealthEquity by 172.3% during the second quarter. Cullen Frost Bankers Inc. now owns 354 shares of the company’s stock worth $37,000 after buying an additional 224 shares during the last quarter. Finally, Sellwood Investment Partners LLC bought a new position in HealthEquity during the second quarter worth about $58,000. 99.55% of the stock is owned by institutional investors.

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.