Former director of HealthEquity, Inc. (NASDAQ:HQY), Frank Corvino, has sold a portion of his holdings in the company. On October 1, 2024, Corvino disposed of 1,247 shares of common stock at a price of $80.2645 per share, totaling over $100,089.
The transaction has adjusted Corvino's stake in the business services provider, leaving him with 4,823 shares following the sale. The deal took place amidst the regular course of trading on the open market and signifies a notable change in the former director's investment in the company.
HealthEquity, Inc., known for its services in health savings accounts and other health financial services, is a key player in the healthcare industry. The sale by a former director may attract the attention of investors who closely monitor insider activities as indicators of a company's financial health and future performance.
The transaction was made public through a Form 4 filing with the U.S. Securities and Exchange Commission. It should be noted that the power of attorney for Mr. Corvino was previously filed on June 26, 2023, and has been referenced in relation to this recent filing.
Investors and market watchers often look to such filings for insights into insider confidence and strategic moves within a company's leadership. While the reasons for Corvino's sale are not disclosed, the transaction details provide transparency and data for market participants.
In other recent news, HealthEquity has reported robust financial growth, with a 23% increase in revenue, a 46% rise in adjusted EBITDA, and a 27% surge in Health Savings Accounts (HSAs) assets in Q2 2025. The company also completed the final tranche of the BenefitWallet acquisition, adding 216,000 HSAs and $1.0 billion in assets. HealthEquity has introduced Health Payment Accounts (HPAs) and announced a $300 million share repurchase program.
RBC (TSX:RY) Capital Markets has raised its price target for HealthEquity to $100 from the previous target of $92, maintaining an Outperform rating. The firm's confidence is based on HealthEquity's HSA growth, custodial cash yields, and service costs. Meanwhile, KeyBanc has maintained its Overweight rating on HealthEquity, highlighting the company's resilience in a declining interest rate cycle and ongoing digitization and artificial intelligence initiatives.
For fiscal 2025, HealthEquity anticipates revenue between $1.165 billion and $1.185 billion, and adjusted EBITDA ranging from $458 million to $478 million. These recent developments underscore HealthEquity's commitment to growth and innovation.
InvestingPro Insights
To provide additional context to Frank Corvino's recent sale of HealthEquity shares, let's examine some key financial metrics and insights from InvestingPro.
HealthEquity's market capitalization stands at $6.83 billion, reflecting its significant presence in the health savings account and financial services sector. The company's revenue growth is noteworthy, with a 17.19% increase over the last twelve months as of Q2 2025, reaching $1.09 billion. This growth trajectory aligns with the company's position as a key player in the healthcare industry, as mentioned in the article.
InvestingPro Tips highlight that HealthEquity's net income is expected to grow this year, which could be a positive sign for investors despite the insider sale. The company is also profitable over the last twelve months, with a high return over the last decade, suggesting a track record of financial success.
However, it's worth noting that HealthEquity is trading at a high earnings multiple, with a P/E ratio of 64.43. This valuation metric might provide some context to Corvino's decision to sell a portion of his holdings, as it could indicate that the stock is currently priced at a premium.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for HealthEquity, providing a deeper understanding of the company's financial position and market outlook.
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