HealthEquity Shares Down Over 10%, Sell-Side And Traders Attribute Move To Institutional Seller

Selling picked up around noon on Wednesday leaving participants baffled. The company reported earnings of $0.08 vs est $0.07 and guidance came in strong.

Mid-day Wednesday selling picked up and shares were taken down from about $31.75 to $28.05 over a matter of 2.5 hours. Various analysts and traders contacted by Benzinga attributed the selling to institutional liquidations as the quarter ends.

In a research notes published Tuesday after HQY earnings, Avondale Partners said the sole negative update that caught people off-guard on revenues was transactions fees, which Avondale says might even be a good thing. Baird Equity analysts called the Q3 report '"excellent" and they see momentum continuing going forward. Raymond James remains optimistic for FY 2017 and believed the premium shares commanded Tuesday evening was warranted according to their Tuesday update.

With 30 minutes remaining Wednesday, HealthEquity shares are off the lows of $28.05, trading $29.10.