Last Updated: 14 Nov 2024
Executive Summary
HealthEquity Inc. (HQY) is a leading provider of technology-enabled service platforms for consumers and employers in the United States. The company's recent financial performance has been strong, with revenue and earnings growth in the latest quarter. Analysts are generally bullish on the stock, with a consensus target price of $103.42. The stock is currently trading at $94.8, below its 52-week high of $101.17.
Company Overview
HealthEquity provides a range of services, including health savings accounts (HSAs), health reimbursement arrangements (HRAs), and flexible spending accounts (FSAs). The company also offers a suite of financial wellness tools and educational resources. HealthEquity serves over 14 million members and has over 100,000 employer clients.
Fundamental Analysis
HealthEquity's financial performance has been strong in recent quarters. In the latest quarter, the company reported revenue of $1099.1 million, up 0.231% year-over-year. Net income was $144.6 million, up 2.333% year-over-year. Diluted EPS was $1.20, in line with analyst estimates.
HealthEquity's balance sheet is also strong. The company has $1.5 billion in cash and equivalents and $1.1 billion in total debt. The company's debt-to-equity ratio is 0.74, which is below the industry average.
Technical Analysis
HealthEquity's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 62, which indicates that the stock is overbought.
Short Term Outlook
HealthEquity's stock price is likely to continue to trend higher in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock's RSI is overbought, which could indicate that the stock is due for a pullback.
Long Term Outlook
HealthEquity's long-term outlook is positive. The company is a leader in the growing market for health savings accounts and other financial wellness products. The company's strong financial position and experienced management team should allow it to continue to grow in the future.
Analyst Recommendations
Analysts are generally bullish on HealthEquity's stock. The consensus target price is $103.42, which represents a potential upside of 9.1% from the current price. Six analysts have a "Strong Buy" rating on the stock, while eight analysts have a "Buy" rating.
