Why Did Cantor Fitzgerald Upgrade Healthequity’s Stock?

By Ryan Adsit

In a report released today, Steven Halper from Cantor Fitzgerald upgraded Healthequity (HQYResearch Report) to Buy, with a price target of $82. The company’s shares opened today at $59.63.

Halper noted:

“. We are upgrading the shares of from Neutral. Our price target remains $82, or roughly 38% above current levels. HQY shares have struggled since the company reported F3Q19 results earlier this month. We believe fundamentals remain strong as HQY continues to benefit from continued adoption of health savings accounts (HSA). The company continues to grow above market rates. In the most recent quarter, HQY’s HSA members grew by 22%, which compares with Webster Bank, which reported account growth of just 12%. Earnings continue to benefit from a higher interest environment, even with a slight moderation in 10-year interest rates lately.”

According to TipRanks.com, Halper is a top 100 analyst with an average return of 17.7% and a 64.6% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Healthequity with a $94 average price target, representing a 57.6% upside. In a report issued on December 5, Barrington also reiterated a Buy rating on the stock with a $100 price target.

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Healthequity’s market cap is currently $3.87B and has a P/E ratio of 58.83. The company has a Price to Book ratio of 8.48.

Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Frank Corvino, a Director at HQY sold 3,846 shares for a total of $266,909.

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.