DA Davidson Has Pessimistic Outlook of HTBK FY2026 Earnings

Key Points

• DA Davidson has revised its FY2026 earnings estimate for Heritage Commerce Corp, lowering it from $0.85 to $0.84 per share, slightly above the consensus estimate of $0.80.
• Heritage Commerce recently reported a quarterly earnings per share of $0.21, which exceeded analysts' expectations by $0.02, alongside revenue of $47.78 million.
• The company's recently declared quarterly dividend stands at $0.13 per share, yielding 5.2% annually, with a payout ratio of 82.54%.

Heritage Commerce Corp (NASDAQ:HTBK - Free Report) - Investment analysts at DA Davidson dropped their FY2026 earnings per share estimates for shares of Heritage Commerce in a research note issued to investors on Monday, September 29th. DA Davidson analyst G. Tenner now forecasts that the financial services provider will post earnings of $0.84 per share for the year, down from their previous forecast of $0.85. The consensus estimate for Heritage Commerce's current full-year earnings is $0.80 per share.

Heritage Commerce (NASDAQ:HTBK - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The financial services provider reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.02. The firm had revenue of $47.78 million for the quarter, compared to analysts' expectations of $47.17 million. Heritage Commerce had a net margin of 15.00% and a return on equity of 6.61%.

Separately, Wall Street Zen lowered shares of Heritage Commerce from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Two research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company has an average rating of "Buy" and an average target price of $10.67.

Heritage Commerce Price Performance

Shares of NASDAQ:HTBK opened at $9.93 on Wednesday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.77 and a current ratio of 0.77. The stock has a market cap of $610.20 million, a PE ratio of 15.76 and a beta of 0.87. Heritage Commerce has a one year low of $8.09 and a one year high of $11.27. The business's fifty day moving average price is $9.94 and its two-hundred day moving average price is $9.60.

Heritage Commerce Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date was Thursday, August 7th. Heritage Commerce's payout ratio is currently 82.54%.

Insider Buying and Selling

In related news, COO Thomas A. Sa purchased 20,000 shares of the firm's stock in a transaction on Friday, August 1st. The stock was purchased at an average price of $9.25 per share, for a total transaction of $185,000.00. Following the acquisition, the chief operating officer directly owned 20,000 shares in the company, valued at $185,000. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 2.71% of the company's stock.

Hedge Funds Weigh In On Heritage Commerce

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. HoldCo Asset Management LP acquired a new position in Heritage Commerce during the 2nd quarter worth $16,121,000. Wellington Management Group LLP lifted its holdings in Heritage Commerce by 64.9% during the 1st quarter. Wellington Management Group LLP now owns 3,796,472 shares of the financial services provider's stock worth $36,142,000 after buying an additional 1,493,857 shares during the last quarter. Rhino Investment Partners Inc bought a new position in Heritage Commerce during the 1st quarter worth approximately $5,222,000. Hotchkis & Wiley Capital Management LLC increased its holdings in shares of Heritage Commerce by 69.8% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 1,277,630 shares of the financial services provider's stock valued at $12,163,000 after acquiring an additional 525,060 shares during the last quarter. Finally, Nuveen LLC bought a new stake in shares of Heritage Commerce in the 1st quarter valued at approximately $4,861,000. 75.55% of the stock is owned by hedge funds and other institutional investors.

Heritage Commerce Company Profile

Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. Its deposit products for business banking and retail markets include interest and non-interest-bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits.

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