The stock of medical imaging and diagnostics software company Heartflow jumped 50% in its market debut on Aug. 8; the latest sign of red-hot demand for initial public offerings (IPOs).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Heartflow, which trades on the Nasdaq Composite exchange under the ticker symbol “HTFL,” raised $317 million from the sale of 16.7 million shares at a price of $19 each. Demand for the share issuance was stronger than expected on Wall Street.
However, the company’s shares began trading on the Nasdaq at $28, nearly 50% above their offering price. The company is worth about $2.5 billion at its current share price. Bain Capital and Wellington Management are top shareholders of Heartflow.
Losing Money
Heartflow is the latest in a string of IPOs that have been oversubscribed and risen sharply on their first day of trading. Other hot IPOs in recent months have included AI start-up CoreWeave (CRWV), stablecoin issuer Circle (CRCL), and space exploration firm Firefly Aerospace.
Heartflow’s IPO looks to be a success despite the fact that the company is not yet profitable, and its losses widened in both 2024 and the first quarter of 2025. But the company’s sales have grown at a brisk pace, rising 44% last year and 39% in the first three months of 2025.
Analysts say the IPO market is reawakening after being dormant for the past three years.
Is HTFL Stock a Buy?
It’s too early for any analyst to cover Heartflow’s stock. So instead, we’ll look at the performance of the SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark U.S. stock index. As one can see in the chart below, the S&P 500 has gained 9% this year.
