HQY Should I Buy
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Given the user's long-term investment strategy and beginner level, HealthEquity Inc. (HQY) is not a strong buy at this time. The technical indicators suggest a bearish trend, options data reflects mixed sentiment, and hedge funds are selling significantly. While the company's financial performance is strong, the lack of recent positive news, a downgraded analyst rating from Goldman Sachs, and the absence of Intellectia Proprietary Trading Signals make it prudent to hold off on investing in HQY for now.
The stock is currently in a bearish trend. The MACD is negative and expanding downward, RSI indicates oversold conditions at 13.269, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 74.645, with resistance levels at 86.724 and 90.455. The pre-market price of 74.67 reflects a slight recovery near support but does not indicate a reversal.
The company reported strong financial growth in Q3 2026, with revenue up 7.23% YoY, net income up 806.40% YoY, and EPS up 883.33% YoY. Gross margin also improved to 62.41%, up 11.17% YoY.
Goldman Sachs downgraded the stock to Sell with an $89 price target, citing concerns over valuation pressure. Hedge funds have significantly increased their selling activity by 213.73% over the last quarter. Technical indicators show a bearish trend, and there is no recent positive news or significant insider activity.
HealthEquity Inc. demonstrated strong financial performance in Q3 2026, with revenue of $322.16M (up 7.23% YoY), net income of $51.69M (up 806.40% YoY), and EPS of 0.59 (up 883.33% YoY). Gross margin increased to 62.41%, reflecting improved operational efficiency.
Analyst sentiment is mixed. Goldman Sachs downgraded the stock to Sell with an $89 price target, citing valuation concerns. However, other analysts, including KeyBanc and JPMorgan, maintain Overweight ratings with price targets ranging from $120 to $129, highlighting growth opportunities in the HSA market and AI-driven margin improvements.
