Healthequity (HQY) Received its Third Buy in a Row

By Carrie Williams

After KeyBanc and Citigroup gave Healthequity (NASDAQ: HQY) a Buy rating last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst Steven Halper reiterated a Buy rating on Healthequity today and set a price target of $80. The company’s shares opened today at $61.13.

Halper said:

“We reiterate our Overweight rating and $80 price target. We continue to believe that DCF valuation is more appropriate for HQY shares than P/E, given the long- term growth characteristics of the HSA market in general, HQY’s growth outlook in particular, and the company’s strong free cash flow generation. We continue to expect annual top-line growth of 20-22% through FY24, and slightly higher operating margins and modestly higher capital expenditure requirements. We believe that HQY’s fundamentals are strong, and that the shares current valuation does not fully reflect the long-term growth potential.”

According to TipRanks.com, Halper is a top 100 analyst with an average return of 18.6% and a 64.3% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Hms Holdings Corp, and Tivity Health Inc.

Healthequity has an analyst consensus of Strong Buy, with a price target consensus of $89.43, which is a 46.3% upside from current levels. In a report issued on January 10, Raymond James also maintained a Buy rating on the stock with a $80 price target.

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Healthequity’s market cap is currently $3.82B and has a P/E ratio of 57.98. The company has a Price to Book ratio of 8.36.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is neutral on the stock. Most recently, in December 2018, Jon Kessler, the President & CEO of HQY bought 17,410 shares for a total of $718,685.

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.