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

<h2>What happened</h2>
<p>According to a <a href="https://www.sec.gov/Archives/edgar/data/1882053/000121465926001960/0001214659-26-001960-index.html">U.S. Securities and Exchange Commission (SEC) filing</a> 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.</p>
<p>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.</p>
<h2>What else to know</h2>
<p>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.</p>
<p>Top holdings after the filing:</p>
<ul>
<li> <p class="yf-1fy9kyt">NYSE: MDT: $41.19 million (13% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ: MIRM: $33.27 million (10.4% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ: IONS: $33.05 million (10.4% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ: CI: $26.55 million (8.3% of AUM)</p></li>
<li> <p class="yf-1fy9kyt">NASDAQ: BMRN: $24.48 million (7.7% of AUM)</p></li>
</ul>
<p>As of February 17, 2026, shares of HealthEquity were priced at $74.36, down 34.3% over the past year, underperforming the S&amp;P 500 by 45.93 percentage points.</p>
<h2>Company Overview</h2>
<table>
<row span="2">
<cell role="head"> <p>Metric</p></cell>
<cell role="head"> <p>Value</p></cell>
</row>
<row span="2"><cell> <p>Price (as of market close 2/17/26)</p></cell><cell> <p>$74.36</p></cell> </row>
<row span="2"><cell> <p>Market Capitalization</p></cell><cell> <p>$6.43 billion</p></cell> </row>
<row span="2"><cell> <p>Revenue (TTM)</p></cell><cell> <p>$1.29 billion</p></cell> </row>
<row><cell> <p>Net Income (TTM)</p></cell><cell> <p>$191.83 million</p></cell> </row>
</table>
<h2>Company Snapshot</h2>
<ul>
<li> <p class="yf-1fy9kyt">HealthEquity offers cloud-based platforms for health savings accounts (HSAs), flexible spending accounts, and health reimbursement arrangements.</p></li>
<li> <p class="yf-1fy9kyt">It serves employers, benefits brokers, health plans, and individual consumers across the United States.</p></li>
<li> <p class="yf-1fy9kyt">The company provides technology-enabled healthcare financial services to streamline account management and payment solutions.</p></li>
</ul>
<p>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.</p>
<h2>What this transaction means for investors</h2>
<p>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.</p>
<p>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.</p>
<p>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.</p>