HealthEquity Short Interest Falls 11.68% to 5.26 Million Shares Sold Short

HealthEquity's short interest has decreased by 11.68% since its last report, with 5.26 million shares sold short, representing 7.03% of all regular shares available for trading. This decline in short interest does not necessarily indicate a rise in the stock's price in the near term. The company's peer group average for short interest is 4.49%, indicating that HealthEquity has more short interest than most of its peers.

HealthEquity's (NASDAQ:HQY) short interest has decreased by 11.68% since its last report, with 5.26 million shares sold short, representing 7.03% of all regular shares available for trading. This decline in short interest does not necessarily indicate a rise in the stock's price in the near term. The company's peer group average for short interest is 4.49%, indicating that HealthEquity has more short interest than most of its peers [1].

HealthEquity, with a market capitalization of $8.92 billion, has seen its stock price increase by +24.89% in the last 52 weeks. The company has a debt-to-equity ratio of 0.52, a current ratio of 4.06, and a quick ratio of 3.47. The company has a trailing PE ratio of 75.34 and a forward PE ratio of 26.66. The PEG ratio is 1.28, indicating that the stock is undervalued relative to its growth rate [1].

The company's latest earnings report showed a return on equity of 5.77% and a net margin of 9.80%. The company's revenue for the last 12 months was $1.24 billion, with earnings per share of $1.37. HealthEquity's operating cash flow was $339.17 million, with free cash flow of $337.72 million [1].

Analysts have shown a strong interest in HealthEquity, with a consensus rating of "Strong Buy" and a consensus target price of $118.55. Raymond James Financial has reaffirmed their "strong-buy" rating, increasing their target price to $120.00. Other analysts have also boosted their price objectives, indicating a potential upside for the stock [2].

While the decline in short interest is a positive sign, investors should remain cautious. The high short interest compared to peers suggests that some investors are bearish on the stock. Additionally, the stock's high valuation metrics, such as the trailing PE ratio, may indicate that the stock is overvalued.

Investors should closely monitor HealthEquity's earnings reports and analyst ratings to gauge the stock's performance in the near term. The company's strong financial position and analyst interest make it a potential investment opportunity, but the high short interest and valuation metrics warrant caution.

References:
[1] https://stockanalysis.com/stocks/hqy/statistics/
[2] https://www.marketbeat.com/instant-alerts/raymond-james-financial-reaffirms-strong-buy-rating-for-healthequity-nasdaqhqy-2025-07-08/