Key Points
- Director Adrian Dillon sold 7,632 HealthEquity shares for approximately $798,384 under a pre-arranged Rule 10b5-1 plan, reducing his direct ownership by 10.9% to 62,395 shares.
- HealthEquity exceeded quarterly expectations, reporting $1.24 in EPS and $350.7 million in revenue, with revenue up 95.5% year over year. Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73.
- Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating and a $110.93 price target, although the stock’s valuation near 35 times earnings and recent insider selling could create short-term pressure.
HealthEquity, Inc. (NASDAQ:HQY - Get Free Report) Director Adrian Dillon sold 7,632 shares of the firm's 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 completion of the sale, the director directly owned 62,395 shares in the company, valued at $6,527,140.95. This represents a 10.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
HealthEquity Trading Down 10.6%
Shares of HealthEquity stock opened at $93.39 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.44 and a quick ratio of 3.44. HealthEquity, Inc. has a 1 year low of $72.76 and a 1 year high of $107.62. The firm has a market cap of $7.81 billion, a PE ratio of 34.98, a PEG ratio of 1.76 and a beta of 0.21. The company has a 50 day simple moving average of $97.93 and a two-hundred day simple moving average of $87.81.
HealthEquity (NASDAQ:HQY - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.19 by $0.05. The firm had revenue of $350.73 million for the quarter, compared to analyst estimates of $349.22 million. HealthEquity had a net margin of 17.25% and a return on equity of 14.75%. The company'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. Analysts expect that HealthEquity, Inc. will post 3.92 earnings per share for the current fiscal year.
Hedge Funds Weigh In On HealthEquity
Hedge funds have recently made changes to their positions in the business. Acumen Wealth Advisors LLC purchased a new position in HealthEquity during the 4th quarter valued at $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of HealthEquity by 1,723.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company's stock worth $28,000 after purchasing an additional 293 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of HealthEquity during the 4th quarter valued at about $28,000. Leonteq Securities AG increased its position in shares of HealthEquity by 159.9% during the first quarter. Leonteq Securities AG now owns 382 shares of the company's stock valued at $32,000 after buying an additional 235 shares during the period. Finally, Axiom Investment Management LLC purchased a new position in shares of HealthEquity during the first quarter valued at about $33,000. 99.55% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of equities research analysts have weighed in on the company. Royal Bank Of Canada raised their price target on HealthEquity from $100.00 to $108.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Citigroup reissued a "market outperform" rating on shares of HealthEquity in a report on Monday, June 1st. Barrington Research reaffirmed an "outperform" rating and issued a $110.00 target price on shares of HealthEquity in a research note on Friday, May 22nd. Wells Fargo & Company set a $111.00 price target on shares of HealthEquity in a research note on Monday, June 1st. Finally, BTIG Research boosted their price objective on shares of HealthEquity from $110.00 to $115.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $110.93.
View Our Latest Analysis on HQY
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.
HealthEquity Company Profile
(
Get Free Report)
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.
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