HealthEquity CEO sells over $2.3 million in company stock

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HealthEquity, Inc.'s (NASDAQ:HQY) President and CEO, Jon Kessler, has sold a substantial amount of company stock, totaling over $2.3 million. The transactions, which took place on September 16, 2024, were executed through a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.

Kessler sold a total of 27,749 shares of HealthEquity common stock in multiple transactions at prices ranging from $78.314 to $78.9368 per share. The sales were conducted in four separate transactions, with 17,338 shares sold at an average price of $78.314, 3,661 shares at an average price of $78.9368, 7,239 shares at an average price of $78.3159, and 1,511 shares at an average price of $78.9334. These sales resulted in a total transaction value of approximately $2,332,992.

It is important to note that some of the shares sold were held directly by Kessler, while others were indirectly held through GKF, LLC. According to the footnotes in the SEC filing, Kessler disclaims beneficial ownership of the indirectly held securities except to the extent of his pecuniary interest therein.

Following the sales, Kessler still holds a significant amount of HealthEquity shares both directly and indirectly. The SEC filing does not indicate any immediate plans for further sales, and the transactions were part of a trading plan established earlier in the year.

Investors often look to the trading activities of company executives for signals about the company's performance and their confidence in its future prospects. However, trades under a Rule 10b5-1 plan are often scheduled in advance and may not necessarily reflect the executive's discretionary trading decisions.

HealthEquity, based in Draper, Utah, specializes in providing health savings accounts and other health financial services. The company's stock is publicly traded on the NASDAQ stock exchange under the ticker symbol HQY.

In other recent news, HealthEquity has reported significant growth in its Q2 2025 financial results, with a 23% increase in revenue and a 46% rise in adjusted EBITDA. The company's Health Savings Accounts (HSAs) assets also grew by 27% during this period. Additionally, HealthEquity successfully completed the final tranche of the BenefitWallet acquisition, adding 216,000 HSAs and $1.0 billion in assets to its portfolio.

KeyBanc has maintained an Overweight rating on HealthEquity, predicting that the company will continue to deliver strong performance in the coming years, even in a potentially lower interest rate environment. The firm's analysis suggests that HealthEquity's stock is showing resilience in the early stages of a declining interest rate cycle.

Furthermore, HealthEquity has announced a new $300 million share repurchase program. The company also introduced Health Payment Accounts (HPAs), and provided a positive outlook for fiscal 2025, with revenue expected to fall between $1.165 billion and $1.185 billion, and adjusted EBITDA projected to range from $458 million to $478 million. These are the recent developments that highlight HealthEquity's commitment to growth and innovation.

InvestingPro Insights

Amidst the news of HealthEquity's CEO Jon Kessler selling shares, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, HealthEquity, Inc. (NASDAQ:HQY) currently holds a market capitalization of $6.78 billion, with a P/E ratio standing at 65.07, suggesting a premium valuation of the company's earnings. The company has demonstrated a strong revenue growth of 17.19% over the last twelve months as of Q2 2025, which may indicate a robust business model and potential for future profitability.

InvestingPro Tips highlight that analysts are forecasting net income growth for HealthEquity this year, which aligns with the company's recent performance, showing profitability over the last twelve months. This could be a reassuring signal for investors considering the recent insider sales. Additionally, the company's liquid assets surpassing short-term obligations suggests a solid financial footing, potentially reducing investment risk associated with liquidity.

For those looking to delve deeper into HealthEquity's financials and market potential, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available, providing a comprehensive analysis of the company's financial standing and market trends. These tips can be accessed through the InvestingPro platform, which includes a fair value estimate of $80.56 for HealthEquity's stock, offering a reference point for investors to assess the current market price.

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