Healthequity (HQY) Gets a Buy Rating from Oppenheimer


Oppenheimer analyst Mohan Naidu maintained a Buy rating on Healthequity (NASDAQ: HQY) today and set a price target of $104. The company’s shares closed yesterday at $94.47, close to its 52-week high of $96.29.

Naidu wrote:

“HealthEquity Q2 beat our and consensus expectations at $71M/$0.34 vs. consensus of $70M/$0.28 and grew HSA membership at 23% y/y, ahead of industry growth. Management also disclosed new active member metric which represented 82% of the total membership and grew 19% y/y. The company is executing exceedingly well in a very attractive market but the recent move in the stock is shifting the focus toward valuation, which has reached levels not seen before. We believe the company’s market position, potential for accelerated growth in numbers from rising interest rates and positive legislative changes support the valuation but the timing of the legislative changes could pause the move. Increasing our target to $104, up from $85. Remain Outperform.”

According to TipRanks.com, Naidu is a 5-star analyst with an average return of 18.6% and a 64.3% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.

Healthequity has an analyst consensus of Strong Buy, with a price target consensus of $91.80, which is a -2.8% downside from current levels. In a report issued on August 30, Barrington also reiterated a Buy rating on the stock with a $85 price target.

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Based on Healthequity’s latest earnings release for the quarter ending July 31, the company reported a quarterly net profit of $22.52 million. In comparison, last year the company had a net profit of $16.95 million.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. Most recently, in July 2018, Frank Medici, a Director at HQY sold 6,904 shares for a total of $555,013.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

HealthEquity, Inc. engages in the provision of healthcare saving solutions. Its products include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements, and healthcare incentives. The company was founded by Stephen D. Neeleman on September 18, 2002 and is headquartered in Draper, UT.

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