Is it a Great Time to Invest in HealthEquity (HQY)?

Wasatch Global Investors, an investment management firm, published its “Wasatch Ultra Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Growth stocks fared worse than value stocks in the quarter, with the benchmark Russell 2000® Growth Index down -12.63%. The Wasatch Ultra Growth Fund—Investor Class posted a larger decline of -16.69%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Wasatch Ultra Growth Fund mentioned HealthEquity, Inc. (NASDAQ:HQY) and explained its insights for the company. Founded in 2002, HealthEquity, Inc. (NASDAQ:HQY) is a Draper, Utah-based financial technology and business services company with a $5.7 billion market capitalization. HealthEquity, Inc. (NASDAQ:HQY) delivered a 54.91% return since the beginning of the year, while its 12-month returns are down by -11.43%. The stock closed at $68.53 per share on June 17, 2022.

Here is what Wasatch Ultra Growth Fund has to say about HealthEquity, Inc. (NASDAQ:HQY) in its Q1 2022 investor letter: 

“HealthEquity, Inc. (NASDAQ:HQY) was also a significant contributor. The company is the largest U.S. non bank custodian for health-savings accounts (HSAs). Account holders have online access to their tax-advantaged HSAs and can compare treatment options, pay medical bills, earn wellness incentives, and receive personalized benefit and clinical information. HealthEquity reported strong growth in its HSA business, with total HSA assets up 37% year-over-year and 25% growth in the number of HSAs on the company’s platform. Management’s upwardly revised forecasts for revenues and earnings in the current fiscal year also cheered investors. HealthEquity is largely insulated from supply-chain constraints and rising materials costs, it should benefit from a return to the workplace, and we believe it’s well-positioned for an environment of higher interest rates.”

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Our calculations show that HealthEquity, Inc. (NASDAQ:HQY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. HealthEquity, Inc. (NASDAQ:HQY) was in 25 hedge fund portfolios at the end of the first quarter of 2022, compared to 26 funds in the previous quarter. HealthEquity, Inc. (NASDAQ:HQY) delivered a 17.25% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on HealthEquity, Inc. (NASDAQ:HQY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.