Long Position on HQY @ $68.50 on 6/21/2022 (Fundamentals)

HealthEquity, Inc. (HQY) provides technology-enabled services platforms to consumers and employers in the United States. 

The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts.

It also provides mutual fund investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool.

In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs.

It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. 

On June 6th, Healthequity reported 1st Quarter April 2022 earnings of $0.30 per share on revenue of $205.7 million. The consensus earnings estimate was $0.26 per share on revenue of $202.7 million.  Revenue grew 11.7% on a year-over-year basis.

The company said it expects fiscal 2023 non-GAAP earnings of $1.23 to $1.32 per share on revenue of $827.0 million to $837.0 million. The company's previous guidance was earnings of $1.21 to $1.30 per share and now expects revenue of $820.0 million to $830.0 million and the current consensus earnings estimate is $1.32 per share on revenue of $825.88 million for the year ending January 31, 2023.

Shares are expected to move higher out of their bullish "cup and handle." 

Entry Point: $68.50

Stop Loss: $65.00

Trading Range: $36.81 - $84.71

Target Price: $74.50

Position closed on 7/1/2022 at price of $65.00 with a -5.11% loss in 10 days.

Back to Portfolio