HealthEquity Inc. (HQY) shares are trading at lower $51.56 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $66.00.
To add more color to this target, the company’s high over the last year is $88.78 and the low is $34.40. Over the last 52 weeks, HQY is down -10.76% while the S&P 500 is up 10.88%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, HQY reported a profit of $101.78 million. HealthEquity Inc. also saw revenues increase to $176.04 million. In addition, HQY has free cash flow of $59.67 million as of 07-2020. The company’s EBITDA came in at $38.96 million which compares well with its peers.
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HQY booked profit margins of -2.70%, its Return on Equity (ROE) is -1.80%, and its Return on Assets is -0.80%. All told, it is clear that, HQY needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. HQY has a short ratio of 5.29 and outstanding shares of 76.87M.
HQY has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -0.28. HealthEquity Inc. HQY also noted assets of $2.66 billion at the end of the last quarter. Investors should also keep an eye on sector updates as HQY has historically followed its peers on positive news.
All told, HealthEquity Inc. HQY has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HQY represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
HealthEquity Inc. HQY is now commanding a market cap of 4.24B and a float of 75.35M. HQY is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of HQY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in HQY, either long or short, and we have not been compensated for this article.