HealthEquity Inc. (NASDAQ:HQY) shares fell to a low of $76.84 before closing at $78.08. Intraday shares traded counted 0.31 million, which was 50.94% higher than its 30-day average trading volume of 637.32K. HQY’s previous close was $77.37 while the outstanding shares total 83.02M. The firm has a beta of 1.36, a 12-month trailing P/E ratio of 684.91, and a growth ratio of 53.51. The stock’s Relative Strength Index (RSI) is 64.66, with weekly volatility at 3.32% and ATR at 2.35. The HQY stock’s 52-week price range has touched low of $45.82 and a $93.32 high. The stock traded higher over the last trading session, gaining 0.92% on 05/20/21.
Investors have identified the Health Information Services company HealthEquity Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.48 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
HealthEquity Inc. (HQY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For HQY, the company has in raw cash 328.8 million on their books with 62.5 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 460.18 million total, with 204.7 million as their total liabilities.
HQY were able to record 168.53 million as free cash flow during the 09/07/2021 quarter of the year, this saw their quarterly net cash flow reduce by 137.08 million. In cash movements, the company had a total of 181.62 million as operating cash flow.
Potential earnings growth for HealthEquity Inc. (HQY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/07/2021 quarter of the year, HealthEquity Inc. recorded a total of 188.17 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.93% coming in sequential stages and their sales for the 09/07/2021 quarter increasing by 4.69%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 87.25 million trying to sell their products during the last quarter, with the result yielding a gross income of 100.92 million. This allows shareholders to hold on to 83.02M with the recently reported earning now reading 0.07 cents per share. This is a figure that compared to analyst’s prediction for their 09/07/2021 (0.30 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.00 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on HQY sounds very interesting.
Is the stock of HQY attractive?
In related news, Special Advisor, MOTT DARCY G sold 6,000 shares of the company’s stock in a transaction that recorded on Apr 20. The sale was performed at an average price of 70.31, for a total value of 421,844. As the sale deal closes, the Executive VP and CFO, MOTT DARCY G now sold 6,000 shares of the company’s stock, valued at 429,742. Also, Executive VP and CFO, MOTT DARCY G sold 6,000 shares of the company’s stock in a deal that was recorded on Feb 22. The shares were price at an average price of 78.38 per share, with a total market value of 470,283. Following this completion of acquisition, the EVP, Counsel & Secretary, Ladd Delano now holds 55,000 shares of the company’s stock, valued at 4,691,773. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
8 out of 14 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on HealthEquity Inc.. 0 analysts has assigned a Sell rating on the HQY stock. The 12-month mean consensus price target for the company’s shares has been set at $85.30.