Insider Selling: Henry Michael Fiore Unloads $182K Of HealthEquity Stock

Revealing a significant insider sell on July 8, Henry Michael Fiore, EVP at HealthEquity HQY, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Fiore executed a sale of 1,794 shares of HealthEquity with a total value of $182,498.

As of Wednesday morning, HealthEquity shares are down by 1.77%, currently priced at $101.29.

Discovering HealthEquity: A Closer Look

HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. It provides payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings. It manages consumers' tax-advantaged health savings accounts (HSAs) and other consumer-directed benefits (CDBs) offered by employers, including flexible spending accounts and health reimbursement arrangements (FSAs and HRAs), and administers Consolidated Omnibus Budget Reconciliation Act (COBRA), commuter and other benefits. It also provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.

A Deep Dive into HealthEquity's Financials

Revenue Growth: HealthEquity displayed positive results in 3 months. As of 30 April, 2025, the company achieved a solid revenue growth rate of approximately 15.04%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company sets a benchmark with a high gross margin of 67.8%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): HealthEquity's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.62.

Debt Management: HealthEquity's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.52.

Market Valuation:

• Price to Earnings (P/E) Ratio: HealthEquity's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 75.27.

• Price to Sales (P/S) Ratio: The current P/S ratio of 7.37 is above industry norms, reflecting an elevated valuation for HealthEquity's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): HealthEquity's EV/EBITDA ratio of 25.64 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of HealthEquity's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.