Heartflow, Inc. (NASDAQ:HTFL) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analyst sentiment is moderately bullish: Twelve analysts rate Heartflow a consensus “Moderate Buy,” with eight buys, one strong buy, two holds and one sell. The average 12-month price target is $46.25.
• Heartflow reported improving operating momentum: Quarterly revenue rose 47.7% year over year to $64.08 million, while its loss of $0.07 per share beat expectations of a $0.22 loss. However, the company remains unprofitable, with a negative net margin of 55.82%.
• Shares have surged but insiders are selling: HTFL opened at $50.69, near its 12-month high of $54.32, while insiders sold $12.9 million of stock during the last quarter under pre-arranged trading plans. Several institutional investors, including BlackRock and Janus Henderson, also established or expanded positions.

Shares of Heartflow, Inc. (NASDAQ:HTFL - Get Free Report) have received a consensus rating of "Moderate Buy" from the twelve research firms that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation, eight have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among analysts that have covered the stock in the last year is $46.25.

Several research analysts have weighed in on the stock. Weiss Ratings raised shares of Heartflow from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 7th. Wells Fargo & Company boosted their price objective on Heartflow from $37.00 to $39.00 and gave the stock an "overweight" rating in a report on Friday, August 14th. UBS Group started coverage on Heartflow in a research report on Wednesday, September 9th. They issued a "neutral" rating and a $55.00 target price on the stock. Piper Sandler reissued an "overweight" rating and set a $45.00 price target (up from $38.00) on shares of Heartflow in a report on Friday, August 14th. Finally, Morgan Stanley upped their price objective on Heartflow from $35.00 to $40.00 and gave the company an "equal weight" rating in a report on Friday, August 14th.

Insiders Place Their Bets

In other Heartflow news, CFO Vikram Verghese sold 16,766 shares of Heartflow stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $50.75, for a total value of $850,874.50. Following the completion of the sale, the chief financial officer owned 155,183 shares in the company, valued at $7,875,537.25. The trade was a 9.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Campbell Rogers sold 19,682 shares of the business's stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $50.15, for a total value of $987,052.30. Following the completion of the sale, the insider owned 79,956 shares of the company's stock, valued at approximately $4,009,793.40. This trade represents a 19.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 287,767 shares of company stock worth $12,871,623 in the last quarter. 7.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Heartflow

A number of institutional investors and hedge funds have recently made changes to their positions in the company. XXEC Inc. bought a new position in Heartflow in the second quarter valued at approximately $2,524,764,000. BlackRock Inc. bought a new stake in Heartflow during the second quarter worth $152,502,000. Bamco Inc. NY bought a new stake in Heartflow during the second quarter worth $94,625,000. Jupiter Topco LLC acquired a new stake in shares of Heartflow in the 2nd quarter valued at $70,983,000. Finally, Janus Henderson Group PLC increased its stake in shares of Heartflow by 152.0% in the 1st quarter. Janus Henderson Group PLC now owns 2,180,976 shares of the company's stock valued at $53,063,000 after purchasing an additional 1,315,416 shares during the last quarter.

Heartflow Stock Down 2.9%

HTFL opened at $50.69 on Wednesday. The stock has a market cap of $4.41 billion, a price-to-earnings ratio of -27.70 and a beta of 2.73. Heartflow has a 12-month low of $20.13 and a 12-month high of $54.32. The business has a 50 day moving average of $43.61 and a 200-day moving average of $34.02.

Heartflow (NASDAQ:HTFL - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.07) earnings per share for the quarter, beating analysts' consensus estimates of ($0.22) by $0.15. The business had revenue of $64.08 million for the quarter. Heartflow had a negative return on equity of 23.52% and a negative net margin of 55.82%.The business's revenue was up 47.7% on a year-over-year basis. As a group, analysts expect that Heartflow will post -0.75 earnings per share for the current year.

About Heartflow

HeartFlow, Inc is a medical technology company focused on improving the diagnosis and management of coronary artery disease. The company develops software and clinical tools that use artificial intelligence, advanced image analysis and data from coronary computed tomography angiography (CCTA) scans to provide noninvasive assessments of blood flow and potential blockages in the heart.

Its principal product is the HeartFlow Analysis, which creates a personalized, three-dimensional model of a patient's coronary arteries and can estimate the impact of blockages on blood flow.

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