Healthequity (HQY) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Healthequity (NASDAQ:HQY) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning.

According to Zacks, “HealthEquity faces stiff competition in the Medical Services markets. HealthEquity is required to comply with strict Treasury Regulations formulated by the Internal Revenue Service or the IRS. However, HealthEquity continues to gain from its solid HSA member growth. Additionally, a bullish guidance for fiscal 2019 paints a bright picture. Strong growth in Service and Custodial revenue segments too buoys optimism. Currently, HealthEquity is the third largest HSA custodian by market share. In addition to HSA, the company offers health reimbursement arrangement (HRA) and a health flexible spending account (FSA) to regional employers. These apart, HealthEquity’s 401(K) solution that lowers the cost, risk and work of managing a retirement plan bode well for the company. Moreover, management is optimistic about the launch of HealthEquity retirement services. “

A number of other brokerages also recently commented on HQY. BidaskClub raised shares of Healthequity from a buy rating to a strong-buy rating in a research note on Thursday, November 1st. Cantor Fitzgerald raised their target price on shares of Healthequity from $80.00 to $82.00 and gave the company a neutral rating in a research note on Thursday, December 6th. SunTrust Banks downgraded shares of Healthequity from a buy rating to a hold rating and cut their target price for the company from $105.00 to $90.00 in a research note on Thursday, December 6th. ValuEngine downgraded shares of Healthequity from a strong-buy rating to a buy rating in a research note on Wednesday, December 5th. Finally, Wells Fargo & Co dropped their price target on shares of Healthequity from $100.00 to $90.00 and set an outperform rating on the stock in a research note on Friday, December 7th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have assigned a buy rating to the company. The company has an average rating of Buy and a consensus target price of $87.85.

Shares of HQY stock traded up $2.80 during mid-day trading on Wednesday, reaching $83.28. The company’s stock had a trading volume of 660,704 shares, compared to its average volume of 787,779. Healthequity has a 12-month low of $50.29 and a 12-month high of $101.58. The company has a market cap of $5.02 billion, a PE ratio of 154.22, a P/E/G ratio of 2.70 and a beta of 1.64.

Healthequity (NASDAQ:HQY) last issued its earnings results on Tuesday, December 4th. The company reported $0.22 EPS for the quarter, beating the Zacks’ consensus estimate of $0.20 by $0.02. Healthequity had a net margin of 24.52% and a return on equity of 12.42%. The business had revenue of $70.50 million for the quarter, compared to the consensus estimate of $69.60 million. During the same quarter last year, the firm posted $0.17 EPS. The business’s revenue for the quarter was up 24.1% compared to the same quarter last year. As a group, equities analysts forecast that Healthequity will post 0.91 earnings per share for the current fiscal year.

In other Healthequity news, VP Darcy G. Mott sold 4,000 shares of the firm’s stock in a transaction on Thursday, December 20th. The shares were sold at an average price of $60.28, for a total transaction of $241,120.00. Following the completion of the transaction, the vice president now directly owns 82,000 shares of the company’s stock, valued at approximately $4,942,960. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Frank Corvino sold 1,778 shares of the firm’s stock in a transaction on Monday, December 10th. The stock was sold at an average price of $67.78, for a total transaction of $120,512.84. Following the transaction, the director now directly owns 5,051 shares of the company’s stock, valued at $342,356.78. The disclosure for this sale can be found here. Insiders have sold a total of 22,721 shares of company stock worth $1,599,038 in the last ninety days. 4.00% of the stock is currently owned by insiders.

Hedge funds have recently made changes to their positions in the business. Legacy Financial Advisors Inc. acquired a new position in Healthequity during the 4th quarter worth $28,000. MERIAN GLOBAL INVESTORS UK Ltd acquired a new position in shares of Healthequity in the 4th quarter valued at about $28,000. Duncker Streett & Co. Inc. acquired a new position in shares of Healthequity in the 4th quarter valued at about $30,000. Ffcm LLC acquired a new position in shares of Healthequity in the 4th quarter valued at about $122,000. Finally, Advisors Asset Management Inc. boosted its holdings in shares of Healthequity by 57.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,136 shares of the company’s stock valued at $160,000 after buying an additional 779 shares during the period. 91.44% of the stock is owned by institutional investors.

About Healthequity

HealthEquity, Inc provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company offers healthcare saving and spending platform, a cloud-based platform for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts.

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