HealthEquity Story

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HQY -- USA Stock  

USD 85.00  3.40  4.17%

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. Today's short post will break down HealthEquity as your potential position. We will inspect the question of why investors should continue to be confident in HealthEquity outlook.
Published over a month ago
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Should you continue to rely on HealthEquity (NASDAQ:HQY) management?
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 329.57 percent. This suggests that the company is making $3.3 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. When we forecast the price of HealthEquity, we are not concerned with any of HealthEquity fundamentals. We simply determine the future price of HealthEquity stock based solely on the trends of the past price. We use techniques such as the exponential moving average (EMA), oscillators, momentum and volume indicators, and others. Technical analysis is rather used for short-term strategies than the long-term ones. Our analysis's main assumption is that everything significant aboutHealthEquity is already priced into the stock.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as HealthEquity. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for HealthEquity

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of HealthEquity's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of HealthEquity in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as HealthEquity. Your research has to be compared to or analyzed against HealthEquity's peers to derive any actionable benefits. When done correctly, HealthEquity's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in HealthEquity.

How important is HealthEquity's Liquidity

HealthEquity financial leverage refers to using borrowed capital as a funding source to finance HealthEquity ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HealthEquity financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between HealthEquity's total debt and its cash.

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

Exercise or conversion by Frank Corvino of 4130 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 Frank Corvino, the corporate stakeholder, on 11th of January 2021. This event was filed by Healthequity Inc with SEC on 2021-01-11. Statement of changes in beneficial ownership - SEC Form 4 [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

The current rise in HealthEquity short term price appreciation may raise some interest from investors. The stock closed today at a share price of 70.60 on 1,185,000 in trading volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.17. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the HealthEquity partners.

Margin Breakdown

Operating Margin16.16
EBITDA Margin0.26
Gross Margin0.65
Profit Margin0.0769

HealthEquity has a small chance to finish above $72 in 2 months

Current Information Ratio is up to 0.05. Price may slide again. HealthEquity shows above-average downside volatility for the selected time horizon. We advise investors to inspect HealthEquity further and ensure that all market timing and asset allocation strategies are consistent with the estimation of HealthEquity future alpha.

Our Final Take On HealthEquity

While many of the other players in the health information services industry are either recovering or due for a correction, HealthEquity may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 6th of December 2020, our primary 30 days recommendation on the company is Strong Sell. We believe HealthEquity is overvalued with low chance of bankruptcy for the next two years.

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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