Exploring HealthEquity, Inc. (HQY) Investor Profile: Who’s Buying and Why?

You're looking at HealthEquity, Inc. (HQY) and wondering who exactly is buying up nearly all the stock, right? It's a fair question when a company in the specialized Health Savings Account (HSA) space posts numbers like the fiscal year 2025 results: $1.20 billion in revenue and a 74% surge in net income to $96.7 million. That kind of growth, plus a massive 27% jump in Total HSA Assets to $32.1 billion, doesn't happen quietly. So, who are the big players banking on this HSA custodian's future, and what's their calculus behind holding nearly 99.55% of the stock? We're talking about the heavy hitters like BlackRock, Inc. and Vanguard Group Inc., who have collectively committed millions of shares-BlackRock, Inc. alone held over 11.1 million shares as of September 2025. What specific trend are these institutional giants seeing in the consumer-directed benefits market that drives such high conviction, and are they simply chasing growth, or is there a deeper, more defensive play at work here? Let's break down the investor profile to see who's buying and why their money is defintely on HQY.

Who Invests in HealthEquity, Inc. (HQY) and Why?

You're looking at HealthEquity, Inc. (HQY) and trying to figure out who else is at the table, and honestly, it's overwhelmingly the big players. The short answer is that the investor base is dominated by large institutions-think BlackRock, Inc. and Vanguard Group Inc.-who are betting on the long-term, structural growth of the Health Savings Account (HSA) market in the US.

This isn't a stock driven by retail momentum; it's a growth story anchored in financial services and healthcare infrastructure. The high concentration of institutional money means the stock's movement is often tied to large-scale portfolio adjustments, not just daily retail sentiment. To be fair, HQY's core business of being the nation's largest HSA custodian is a powerful draw for patient capital.

Key Investor Types: The Institutional Giants

The ownership breakdown for HealthEquity, Inc. is heavily skewed toward institutional investors, which include mutual funds, pension funds, and major asset managers. They collectively own a massive chunk of the company, with institutional ownership figures sitting as high as 99.55% of the stock. That's a huge vote of confidence from the professional money management world.

The largest shareholders are exactly who you'd expect to see in a well-established, mid-cap growth story. For example, BlackRock, Inc. and Vanguard Group Inc. consistently hold significant positions, often through their massive index funds and ETFs (Exchange-Traded Funds). Insider ownership, which is holdings by executives and directors, is comparatively small, typically around 1.50% to 2.14%.

Here's a quick snapshot of the ownership mix:

• Institutional Investors: Own up to 99.55% of shares.
• Retail/Individual Investors: Hold the remaining float, roughly 20.18% by some measures.
• Insiders: Hold a small, but vested, stake of around 2.14%.

Investment Motivations: Growth and Custodial Yield

Investors are attracted to HealthEquity, Inc. for three clear reasons: market leadership, strong growth in assets, and a highly profitable revenue stream from custodial assets. The company is the market leader in HSAs, which are tax-advantaged savings accounts for healthcare expenses, and that market is still expanding as more employers shift to high-deductible health plans.

The financial results for the fiscal year ended January 31, 2025, show exactly why institutions are piling in. Total revenue hit $1.20 billion, a 20% increase over the prior year. More importantly, the company's Total HSA Assets grew to $32.1 billion in FY 2025, and then to $33.1 billion by the end of Q2 2026 (July 31, 2025). This asset growth is the engine.

The real kicker is the custodial revenue, which was $545.4 million in FY 2025. This revenue comes from the interest earned on the cash held in customer HSAs. With interest rates higher, the annualized yield on HSA cash was a strong 3.51% in Q2 2026, which directly boosts profitability. Honestly, custodial revenue is essentially free money for the company right now.

You can see the long-term strategic focus here: Mission Statement, Vision, & Core Values of HealthEquity, Inc. (HQY).

Investment Strategies: Long-Term Growth vs. Short-Term Trading

The dominant strategy among HQY investors is long-term growth investing. The largest institutional holders, like Vanguard and BlackRock, are primarily passive indexers. They buy and hold because HealthEquity, Inc. is a component of major indices like the S&P MidCap 400, reflecting a belief in the sustained, secular growth of the HSA market over the next decade.

However, not everyone is a patient long-term holder. The stock's consistent outperformance and earnings beats also attract short-term traders and growth-oriented hedge funds. These investors focus on the quarterly cadence of growth metrics, like the Q2 2026 net income surge of 67% to $59.9 million, which beat analyst expectations. They are looking to capitalize on the stock's reaction to strong Adjusted EBITDA of $471.8 million in FY 2025 and new guidance.

Here's the quick math on the growth story:

What this estimate hides is that the company does not pay a dividend, meaning all investor returns must come from capital appreciation. This is a classic growth stock profile. The strategy for a retail investor should defintely align with this long-term growth thesis, focusing on the continued expansion of HSA accounts and the benefit from higher interest rates on custodial cash.

Institutional Ownership and Major Shareholders of HealthEquity, Inc. (HQY)

If you're looking at HealthEquity, Inc. (HQY), the first thing you need to grasp is that this stock is overwhelmingly owned by institutions. This isn't a retail-driven story; it's a massive institutional conviction play, which means liquidity is high but any strategic shift by a major fund can move the price fast.

As of late 2025, a staggering 99.55% of HealthEquity's stock is held by institutional investors and hedge funds. This level of ownership is defintely a sign of maturity and stability in the market's view of their business model, which focuses on Health Savings Accounts (HSAs) and other consumer-directed benefits.

Top Institutional Investors and Their Stakes

The list of HQY's largest shareholders reads like a who's who of global asset management. These are not small players-they manage trillions in assets and their positions reflect long-term, strategic allocations, often through index funds or large-cap growth mandates.

The top three holders alone command a significant portion of the institutional float, giving them immense sway. Here's a quick look at the top institutional holders based on their September 30, 2025, 13F filings with the SEC:

The total value of institutional holdings in HealthEquity is substantial, reaching approximately $9,137 million as of the most recent reporting period.

Recent Ownership Changes: The Buy/Sell Signals

What's more telling than the sheer volume of shares is the recent activity. In the third quarter of 2025, we saw a clear split between passive index funds adding to their positions and some active managers trimming or exiting.

• Buyers: BlackRock, Inc. and Vanguard Group Inc, which run massive index funds, both increased their stakes, adding hundreds of thousands of shares. This is typical for HQY's inclusion in key indexes like the S&P Mid-Cap 400. Artisan Partners Limited Partnership also made a notable active move, boosting its position by 44.8% in Q2 2025, acquiring an additional 192,252 shares.
• Sellers: Fmr Llc, a major active manager, executed a significant reduction, cutting its stake by over 30%, which amounted to selling 1,550,235 shares. This kind of large-scale selling from an active fund suggests a shift in their conviction about the near-term growth story or a reallocation to other sectors.

The net result of this activity is a high level of institutional confidence, but the divergence between passive and active buying/selling is a signal you should watch closely. The big passive funds are buying because HQY is in the index; the active funds are making a choice.

The Impact of Institutional Ownership on HQY's Strategy

With nearly all the stock held by institutions, these large investors play a critical role in HealthEquity's stock price and corporate strategy. This high concentration translates to a few key effects:

• Stock Price Stability: The large, often passive, holdings from firms like Vanguard and BlackRock, Inc. provide a floor for the stock price, reducing day-to-day volatility.
• Strategic Focus: Management is keenly aware of the need to deliver on their long-term growth narrative-especially around their Health Savings Account (HSA) assets and member growth-to keep these large, influential investors happy. You can see this focus in their Mission Statement, Vision, & Core Values of HealthEquity, Inc. (HQY).
• Valuation Anchor: The institutional backing supports the current analyst consensus of a 'Moderate Buy' rating, with an average price target of $119 per share as of November 2025. This consensus reflects the market's belief in the company's ability to execute on its fiscal year 2026 guidance, which projects earnings per share (EPS) between $3.74 and $3.91.

Here's the quick math: if the market cap is roughly $8.77 billion and institutional investors hold 99.55%, they are collectively betting over $8.73 billion on HQY's future growth in the consumer-directed healthcare space. That's a powerful vote of confidence.

Key Investors and Their Impact on HealthEquity, Inc. (HQY)

You're looking at HealthEquity, Inc. (HQY) and want to know who is really calling the shots. The direct takeaway is that HQY is overwhelmingly an institutional favorite, with nearly all of its shares held by major asset managers, which points to a stable, but passively-influenced, ownership structure.

Institutional investors-think pension funds, mutual funds, and endowments-own a staggering 99.55% of HealthEquity's stock. This level of ownership means the stock movements are less driven by retail investors and more by the quarterly portfolio rebalancing and strategic shifts of these major financial powerhouses. It's a sign of confidence in the underlying business model, but it also means the stock can move sharply when a few big players adjust their positions.

The Big Three: Passive Giants and Their Stakes

The investor profile for HealthEquity, Inc. is dominated by the world's largest asset managers, often referred to as passive giants because they run massive index funds (investment vehicles designed to mirror a specific market index). The top three institutional holders, as of the most recent filings, are BlackRock, Inc., Vanguard Group Inc., and State Street Corp.

Here's the quick math: these firms hold shares not because of a specific activist agenda, but because HealthEquity, Inc. is a component of major indices like the S&P MidCap 400. Their influence is structural, not vocal. They generally vote with management, but their sheer size gives them significant gravity in any shareholder vote or market event. You defintely need to track their movements, as they are the market. For more on the company's long-term view, you should check out their Mission Statement, Vision, & Core Values of HealthEquity, Inc. (HQY).

The table below shows the top institutional holders, based on their reported stakes, which anchor the stock's stability:

Recent Investor Moves and Insider Selling

The most recent Form 13F filings from the second quarter of 2025 show a mix of activity, but the net flow was positive, reflecting confidence in the company's strong fiscal year 2025 performance, which saw revenue hit $1.20 billion and Total HSA Assets grow to $32.1 billion.

On the buying side, several active funds made notable additions:

• Artisan Partners Limited Partnership boosted its position by 44.8%, adding 192,252 shares for a total stake valued at $65.124 million.
• Creative Planning grew its stake by 41.3%, acquiring an additional 14,338 shares.
• GDS Wealth Management increased its stake by 28.4%, now holding 87,287 shares.

But it wasn't all buying. Some institutions trimmed their positions, like Intech Investment Management LLC, which reduced its stake by 9.5% in the second quarter. This kind of back-and-forth is normal portfolio management, but it's the large, aggressive buys that signal a strong conviction in the growth story-especially with HealthEquity's non-GAAP net income reaching $277.3 million in FY2025.

The Signal in Insider Selling

What's more interesting is the insider activity. While institutional buying was robust, company insiders sold a total of 9,281 shares over a recent three-month period, valued at approximately $859,867. This includes a notable sale by EVP Delano Ladd, who sold 6,000 shares for $564,660.00 in September 2025.

Insider selling isn't always a red flag-it can be for personal liquidity-but when you see executives taking profits, it warrants a closer look at the valuation. It suggests that while the institutions are buying for long-term growth (HQY's HSA count reached 9.9 million in FY2025), the people closest to the business might feel the stock price is currently fair or even a little extended. The current market cap is around $8.92 billion, so any insider move is a tiny fraction, but it's a data point to consider.

Market Impact and Investor Sentiment

You're looking for a clear read on HealthEquity, Inc. (HQY) from the people who hold the most skin in the game, and the message is defintely one of cautious optimism. The major shareholders-institutional investors like BlackRock, Inc. and The Vanguard Group, Inc.-are overwhelmingly bullish, a sentiment that translates into a 'Moderate Buy' consensus across Wall Street. This isn't a speculative frenzy; it's a vote of confidence in the company's core business of Health Savings Accounts (HSAs).

Institutional ownership is nearly total, sitting at about 99.55% of the stock, which means retail investors are following the lead of the big money. The largest holders are well-known powerhouses: BlackRock, Inc. owns a substantial 11,165,710 shares valued at roughly $1.1 billion, and The Vanguard Group, Inc. holds 8,746,255 shares valued at approximately $890.1 million. This concentration of ownership suggests a belief in the long-term trajectory of the healthcare savings market, which HealthEquity dominates.

Still, you need to watch the mixed signals. While institutions are buying, company insiders have been net sellers, disposing of 9,281 shares worth $859,867 in the last three months of 2025, including sales by Executive Vice Presidents. That's a small figure relative to the total market capitalization of around $8.85 billion, but it's a data point that warrants attention, indicating some executives are taking profits.

• BlackRock, Inc. holds 11.17 million shares.
• Institutional ownership is near 99.55%.
• Insiders sold 9,281 shares recently.

Recent Market Reactions and Ownership Moves

The stock market has responded positively to HealthEquity's operational performance throughout the 2025 fiscal year. The stock has risen 9.5% over the six months leading up to November 2025, significantly outpacing the industry's 3.2% growth over the same period. This move is fueled by strong fundamentals, particularly the growth in its Health Savings Accounts (HSAs), which reached 10 million total accounts as of July 31, 2025, marking a 6% year-over-year increase.

Large institutional moves are generally supportive. For example, GDS Wealth Management increased its stake by 28.4% in the second quarter, acquiring an additional 19,280 shares for a total of 87,287 shares valued at about $9.14 million. Artisan Partners Limited Partnership also boosted its position by 44.8% in the second quarter. However, the stock's reaction to specific innovation news can be muted; the shares traded flat following the November 2025 announcement of the new Agentic AI capabilities rollout, suggesting the market is waiting for tangible financial results from these 'cutting-edge solutions' (or rather, new technology) before moving the price. The stock price on November 21, 2025, was $101.91.

The market likes the core growth story, but it's not jumping on every press release.

Analyst Perspectives on Key Investor Impact

The consensus among the 14 to 15 Wall Street analysts covering HealthEquity is a 'Moderate Buy' or 'Strong Buy.' This positive outlook is a direct reflection of the company's execution and the belief that the institutional investor base will continue to be rewarded. The average 12-month price target is set between $119.00 and $121.79, which implies a potential upside of 16.77% to 28.76% from the recent stock price.

Here's the quick math: If the stock hits the average target of $119.00, that's a solid return. Analysts are basing this on strong fiscal projections. For the 2025 fiscal year, revenue is forecasted to be $1.32 billion, representing a 10.27% increase year-over-year. More impressively, the Earnings Per Share (EPS) for the current year is forecasted at $3.90, a massive jump of 258.09% from the prior year's $1.09. This kind of earnings growth is what keeps the big funds interested and buying.

The analysts' bullish stance is underpinned by the company's strong financial health, including a healthy free cash flow of $288.23 million as of late 2025. For a deeper dive into the company's foundation, you can check out HealthEquity, Inc. (HQY): History, Ownership, Mission, How It Works & Makes Money.

What this estimate hides is the risk of policy changes in the healthcare sector, which could impact the HSA market, but for now, the data suggests a clear path for growth. Your next step should be to look at the upcoming earnings report for Q3 2026 guidance to see if management's outlook aligns with the analysts' high EPS forecast for FY2025.