HealthEquity Story

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HQY -- USA Stock  

USD 47.57  1.42  3.08%

HealthEquity Receivables Turnover is fairly stable at the moment as compared to the past year. HealthEquity reported Receivables Turnover of 11.02 in 2019. Inventory Turnover is likely to rise to 227.68 in 2020, whereas Revenue Per Employee is likely to drop slightly above 180.7 K in 2020. If you have been keeping an eye on HealthEquity you know that now may not be the best time to buy. The company current chance of financial distress is under 14 percent. Will investors continue to be optimistic, or should we expect a sell-off?
Published over two weeks ago
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Are investors happy with HealthEquity (NASDAQ:HQY) basic indicators?
The company retains a Market Volatility (i.e. Beta) of 0.0058, which attests to not very significant fluctuations relative to the market. Let's try to break down what HealthEquity's beta means in this case. As returns on the market increase, HealthEquity returns are expected to increase less than the market. However, during the bear market, the loss on holding HealthEquity will be expected to be smaller as well. Even though it is essential to pay attention to HealthEquity current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy in determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. HealthEquity exposes twenty-one different technical indicators, which can help you to evaluate its performance. HealthEquity has an expected return of -0.12%. Please be advised to check out HealthEquity standard deviation, as well as the relationship between the value at risk and kurtosis to decide if HealthEquity stock performance from the past will be repeated at some point in the near future.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include HealthEquity income statement, its balance sheet, and the statement of cash flows. Potential HealthEquity investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although HealthEquity investors may use each financial statement separately, they are all related. The changes in HealthEquity's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on HealthEquity's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of HealthEquity fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of HealthEquity performance into the future periods or doing a reasonable stock valuation. The intrinsic value of HealthEquity shares is the value that is considered the true value of the share. If the intrinsic value HealthEquity is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares HealthEquity. Please read more on our fundamental analysis page.

Are HealthEquity Earnings Expected to grow?

The future earnings power of HealthEquity involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of HealthEquity factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. HealthEquity stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of HealthEquity expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for HealthEquity, but it might be worth checking our own buy vs. sell analysis

HealthEquity Gross Profit

HealthEquity Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HealthEquity previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HealthEquity Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Ashley Dreier of 16250 shares of HealthEquity subject to Rule 16b-3

Legal trades by HealthEquity insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
HealthEquity insider trading alert for exercise of stock option (right to buy) by Ashley Dreier, Former Exec VP CTO and CIO, on 3rd of September 2020. This event was filed by Healthequity Inc with SEC on 2020-09-03. Statement of changes in beneficial ownership - SEC Form 4. Ashley Dreier currently serves as executive vice president cto and cio of HealthEquity [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On HealthEquity

Many companies such as HealthEquity have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of HealthEquity is distributed among investors.

Ownership Allocation

HealthEquity has a total of seventy-six million six hundred ninety thousand outstanding shares. The majority of HealthEquity outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in HealthEquity to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in HealthEquity. Please pay attention to any change in the institutional holdings of HealthEquity as this could imply that something significant has changed or about to change at the company. Also note that almost two million three hundred thousand seven hundred invesors are currently shorting HealthEquity expressing very little confidence in its future performance.

Institutions
100.48%
Retail Investors-3.0
Insiders2.52
Institutions100.48

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. HealthEquity has an asset utilization ratio of 288.88 percent. This suggests that the company is making $2.89 for each dollar of assets. An increasing asset utilization means that HealthEquity is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
2.4 B
Goodwill
2.3 B
Current Assets262.5 Million5.26
Assets Non Current2.45 Billion49.01
Goodwill2.28 Billion45.73
Tax Assets18,473.683.7E-4

Is HealthEquity showing appearance of lower volatility?

HealthEquity current sortino ratio rises over 0.52. HealthEquity currently demonstrates below-verage downside deviation. It has Information Ratio of 0.47 and Jensen Alpha of 0.06. However, we do advice investors to further question HealthEquity expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on HealthEquity Investment

While many other companies in the health information services industry are either recovering or due for a correction, HealthEquity may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 7th of September 2020, we believe that HealthEquity is currently undervalued with low chance of bankruptcy in the next two years. Our primary 30 days recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of HealthEquity. Please refer to our Terms of Use for any information regarding our disclosure principles.

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