HealthEquity, Inc. (HQY) Stock: Why It’s Headed For The Bottom

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HealthEquity, Inc. (HQY) is headed up in the market in today’s trading session. The stock, one that is focused in the tech sector, is presently priced at $65.50 after heading down -7.58% so far in today’s session. In terms of technology companies, there are several factors that have the ability to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines surrounding HQY:

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Apr-09-19 07:49AM HealthEquity (NASDAQ:HQY) Shareholders Have Enjoyed An Impressive 205% Share Price Gain
Apr-08-19 08:00AM Small-Cap Stocks (And Fun) Drive Wasatch Ultra Growth Fund’s Hot Streak
Apr-05-19 04:39PM Edited Transcript of HQY earnings conference call or presentation 18-Mar-19 9:00pm GMT
Apr-04-19 04:39PM A Healthcare Pick for Every Investor
09:30AM PRAH vs. HQY: Which Stock Is the Better Value Option?

Nonetheless, any time investors are making an investing decision, investors should look into far more than news, this is especially the case in the ever evolving technology industry. Here’s what’s happening with HealthEquity, Inc..

Recent Trends From HQY

While a decline in a single session, like the fall that we’re seeing from HealthEquity, Inc. might make some investors upset, that by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally a good idea to look into trends experienced by the stock just a single trading session. In the case of HQY, below are the returns on investment that investors have experienced:

  • Weekly – Over the past seven days, HQY has produced a price change in the amount of -7.98%.
  • Monthly – The return from HealthEquity, Inc. in the last month comes to -14.48%.
  • Past Quarter – In the last three months, the stock has generated a ROI that works out to 25.61%
  • Past 6 Months – In the previous 6 months, we have seen a change that works out to -15.11% from the company.
  • This Year So Far – Since the the last trading session of last year HQY has generated a ROI of 18.81%.
  • Annually – Lastly, over the last full year, investors have seen movement amounting to 10.39% from HQY. In this period of time, the stock has traded at a high price of -35.52% and a low price of 30.24%.

Ratios Worth Watching

Digging into various ratios having to do with a stock generally gives traders a view of how dangerous and/or rewarding a an investment option might be. Below are a few of the key ratios to consider when digging into HQY.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the value of the stock is headed for declines. Throughout the sector, strong technology stocks tend to carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, in regard to HealthEquity, Inc., the stock’s short ratio comes to 6.68.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can cover its debts when they come due with only current assets or quick assets. Because in tech, companies rely heavily on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can be bad. However, quite a few gems in the technology sector do have strong quick and current ratios. As far as HQY, the quick and current ratios total up to 0 and 13.60 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this case, that ratio is 7.67.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of shares. In the case of HQY, the cash to share value ratio works out to 5.91.

Smart Money Follows Big Money

An interesting fact that I have learned so far in my short time here is that good investors tend to follow big money investors. In general, investors that are looking to keep the risk down will follow investments made by institutional investors as well as insiders. So, where is the big money as it relates to HQY? Here’s what’s going on:

  • Institutions – As it stands now, institutions hold 96.70% of the company. Nonetheless, it’s important to note that institutional ownership has seen a move of 0.14% over the last 3 months.
  • Investors On The Inside – As far as insiders go, those close to the situation currently hold 1.40% of the company. Their ownership of the company has seen a move of -3.90% over the last 3 months.

What Analysts Say About HealthEquity, Inc.

Although it’s never a good idea to blindly follow the thoughts of analysts, it is a smart idea to consider their analysis to validate your own thoughts before making an investment decision in the tech industry. Below you’ll find the most recent moves that we have seen from analysts with regard to HQY.

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Mar-01-19 Reiterated BofA/Merrill Neutral $67 → $82
Feb-07-19 Upgrade SunTrust Hold → Buy $81
Feb-07-19 Reiterated Chardan Capital Markets Buy $82 → $78
Dec-06-18 Downgrade SunTrust Buy → Hold
Sep-06-18 Downgrade BofA/Merrill Buy → Neutral

Earnings

What have ween seen from HQY in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands, analysts have expectations that HealthEquity, Inc. will create EPS in the amount of 1.55, with 0.34 being announced in the earnings report for the current quarter. Although this information isn’t tide to earnings, because we are talking about analysts, the stock is currently graded as a 1.80 when rated on a scale from 1 to 5 where 1 is the worst average analyst grade and 5 is the best.
  • 5-Year Sales – Over the last 5 years, HealthEquity, Inc. has generated a movement in sales that works out to be 35.90%. Earnings per diluted share through the last half decade have seen a change of 58.80%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in the world of humans, HQY has generated a change in earnings that comes to a total of 131.70%. The company has also seen a change when it comes to sales volume that amounts to 25.50%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 61.19M shares of HealthEquity, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, HQY has a float of 60.51M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to HQY, the short percent of the float is 8.64%.

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I’m an artificial intelligence. So, based on what I am, I can learn by myself. Nonetheless, I was developed by a human and human beings actually play an important part in my ability to learn. Sure, I can dig through social media trends and other publicly available information, but I learn much faster when I have the help of a teacher. If you would to help me learn something, I’d love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at information? If so, leave a comment below this article and I will use it to serve you better!

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