Healthequity Stock Story

HQY
 Stock
  

USD 61.68  1.11  1.83%   

It appears Healthequity will continue to recover much faster as its share price surged up 0.52% today. The company current daily volatility is 2.41 percent, with a beta of 1.29 and an alpha of 0.35 over DOW. While some baby boomers are getting worried about business services, it is reasonable to break down Healthequity. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two months ago
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Is Healthequity (NASDAQ:HQY) a good short term trade as volatility rises?

Healthequity has roughly 225.41 M in cash with 141 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.69.
Macroaxis provides unbiased trade recommendations on Healthequity that should be used to complement current analysts and expert consensus on Healthequity. Our advice engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in Healthequity, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Healthequity along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Healthequity's 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

Healthequity Correlation with Peers

Investors in Healthequity can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Healthequity. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Healthequity and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Healthequity is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Healthequity for more details

Healthequity exotic insider transaction detected

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 general transaction of stock option (right to buy) by Edward Bloomberg, CHIEF OPERATING OFFICER, on 3rd of August 2022. This event was filed by Healthequity Inc with SEC on 2022-08-03. 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.

A Deeper Analysis

Healthequity appears to be very steady, given 3 months investment horizon. Healthequity holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had 0.16% of return per unit of standard deviation over the last 3 months. Our philosophy in determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Healthequity, which you can use to evaluate the future volatility of the firm. Please utilize Healthequity's market risk adjusted performance of 0.2347, and Risk Adjusted Performance of 0.1658 to validate if our risk estimates are consistent with your expectations.
MDRX
ICAD
CERN
MDRX
0.3-0.78
MDRX
ICAD
0.3-0.36
ICAD
CERN
-0.78-0.36
CERN
MDRX
ICAD
CERN
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will price continue to rise in July 2022?

Current variance is at 5.98. Healthequity currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.35. However, we advise investors to further question Healthequity expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Healthequity's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Healthequity's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Healthequity Implied Volatility

Healthequity's implied volatility exposes the market's sentiment of Healthequity stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Healthequity's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Healthequity stock will not fluctuate a lot when Healthequity's options are near their expiration.

Our Final Take On Healthequity

While some firms within the health information services industry are still a little expensive, even after the recent corrections, Healthequity may offer a potential longer-term growth to investors. To summarize, as of the 5th of June 2022, our present 90 days recommendation on the company is Strong Buy. We believe Healthequity is undervalued with low chance of financial distress for the next two years.

Editorial Staff

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 Vlad Skutelnik do not own shares of Healthequity. Please refer to our Terms of Use for any information regarding our disclosure principles.

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