Hedge Fund Boone Capital Initiated a Stake in HealthEquity. Is the Stock a Buy?

By Robert Izquierdo – Mar 15, 2026 at 4:55PM ESTKey PointsBoone 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.What happenedAccording 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 knowThis 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 OverviewMetricValuePrice (as of market close 2/17/26)$74.36Market Capitalization$6.43 billionRevenue (TTM)$1.29 billionNet Income (TTM)$191.83 millionCompany SnapshotHealthEquity 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 investorsBoone 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.About the AuthorRobert "Izzy" Izquierdo is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and communication services sectors. Prior to The Motley Fool, Izzy was head of product management at Target Media Partners, developing and launching multimillion-dollar software used by businesses such as Charter Communications. Prior to that, he worked at Yahoo! and startups on software products in connected TV, AI, consumer apps, and digital advertising. He holds a bachelor’s degree in English literature from UCLA and is certified in software product management.TMFWryWriteStocks MentionedHealthEquityNASDAQ: HQY$77.77(+1.28%)+$0.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.