Healthequity Initiated with a Buy at Oppenheimer

By Jason Carr

Healthequity (NASDAQ: HQY) received a Buy rating and a $58 price target from Oppenheimer analyst Mohan Naidu today. The company’s shares opened today at $41.59.

Naidu noted:

“HealthEquity, as a pure play provider of tax-advantaged health accounts and related services, is perfectly positioned to take advantage of favorable regulatory changes and the increasing shift of healthcare costs toward consumers. Among the various ACA repeal & replace proposals in DC, the one constant appears to be the push to provide ownership to consumers along with first-dollar responsibility through tax- advantaged accounts such as HSAs. A large number of employers have already embarked on this path, and the regulatory shift could significantly speed up this change and drive faster adoption. While HQY shares have moved up post-election in anticipation of favorable changes in consumer-directed health accounts, we believe there is still upside to growth and valuation.”

According to, Naidu is a 3-star analyst with an average return of 2.3% and a 48.3% success rate. Naidu covers the Technology sector, focusing on stocks such as Quality Systems, Evolent Health, and Athenahealth.

Healthequity has an analyst consensus of Strong Buy, with a price target consensus of $60.

Healthequity’s market cap is currently $2.47B and has a P/E ratio of 96.95. The company has a book value ratio of 9.7885.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. Most recently, in January 2017, Frank Corvino, a Director at HQY sold 35,000 shares for a total of $1,411,136.

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HealthEquity, Inc. offers solutions for managing health care accounts for health plans, insurance companies and third-party administrators. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to grow their tax-advantaged healthcare savings. The company was founded by Stephen D. Neeleman on September 18, 2002 and is headquartered in Draper, UT.