Hedge Fund Boone Capital Initiated a Stake in HealthEquity. Is the Stock a Buy?
Key Points
Boone Capital Management purchased 212,856 shares of HealthEquity; trade value of $19.5 million as reported in the SEC filing.
The position represents 6.12% of 13F reportable assets under management.
The new holding places HealthEquity outside the fund’s top five positions by value.
- 10 stocks we like better than HealthEquity ›
What happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated February 17, 2026, Boone Capital Management established a new position in HealthEquity by purchasing 212,856 shares. The reported value of the transaction was $19,499,738, as disclosed in the filing.
This new stake brought the fund’s quarter-end holding in HealthEquity to 212,856 shares, valued at $19,499,738, reflecting the impact of both the purchase and any price movement during the period.
What else to know
This new position brings HealthEquity to 6.12% of BOONE Capital Management’s $318.61 million in reportable U.S. equity assets as of December 31, 2025.
Top holdings after the filing:
- NYSE: MDT: $41.19 million (13% of AUM)
- NASDAQ: MIRM: $33.27 million (10.4% of AUM)
- NASDAQ: IONS: $33.05 million (10.4% of AUM)
- NASDAQ: CI: $26.55 million (8.3% of AUM)
- NASDAQ: BMRN: $24.48 million (7.7% of AUM)
As of February 17, 2026, shares of HealthEquity were priced at $74.36, down 34.3% over the past year, underperforming the S&P 500 by 45.93 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2/17/26) | $74.36 |
| Market Capitalization | $6.43 billion |
| Revenue (TTM) | $1.29 billion |
| Net Income (TTM) | $191.83 million |
Company Snapshot
- HealthEquity offers cloud-based platforms for health savings accounts (HSAs), flexible spending accounts, and health reimbursement arrangements.
- It serves employers, benefits brokers, health plans, and individual consumers across the United States.
- The company provides technology-enabled healthcare financial services to streamline account management and payment solutions.
HealthEquity operates as a leading provider of technology-enabled healthcare savings solutions, leveraging a cloud-based platform to deliver value to employers and individual consumers. Its integrated approach and broad client network position the company as a key player in the healthcare financial services sector.
What this transaction means for investors
Boone Capital Management’s purchase of HealthEquity stock in the fourth quarter of 2025 is a noteworthy event. The hedge fund primarily invests in healthcare companies, and its new stake in HealthEquity suggests it’s bullish on the stock.
Since Boone Capital’s Q4 investment, HealthEquity shares have dropped, hitting a 52-week low of $72.76 on Feb. 17. Despite this, the company is doing well.
HealthEquity disclosed the number of health savings accounts (HSAs) under its purview grew 7% year over year to 10.6 million in its fiscal year ended Jan. 31, 2026. This bodes well for its fiscal 2025 full-year financial results, which the company will disclose on March 17.
In its fiscal third quarter, HealthEquity delivered sales of $322.2 million, up from $300.4 million in the previous year. Its Q3 net income rose to $51.7 million compared to $5.7 million in the prior year.
With its share price decline, HealthEquity’s forward price-to-earnings ratio has dropped to 17, a low point for the past year. This valuation suggests now is a good time to pick up shares.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ionis Pharmaceuticals and Mirum Pharmaceuticals. The Motley Fool recommends BioMarin Pharmaceutical and Medtronic. The Motley Fool has a disclosure policy.
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