DA Davidson Raises Earnings Estimates for Heritage Financial

Key Points

• DA Davidson raised its FY2026 earnings per share estimates for Heritage Financial from $2.32 to $2.50, reflecting increased optimism about the company's performance.
• Heritage Financial reported quarterly earnings of $0.53 per share, surpassing analyst estimates of $0.50, despite revenues falling short of consensus expectations.
• The company declared a quarterly dividend of $0.24, representing an annualized yield of 4.0%, with a payout ratio of 67.13%.

Heritage Financial Corporation (NASDAQ:HFWA - Free Report) - DA Davidson lifted their FY2026 earnings per share estimates for shares of Heritage Financial in a report issued on Monday, September 29th. DA Davidson analyst J. Rulis now anticipates that the financial services provider will post earnings per share of $2.50 for the year, up from their previous forecast of $2.32. The consensus estimate for Heritage Financial's current full-year earnings is $2.09 per share.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.03. Heritage Financial had a return on equity of 7.34% and a net margin of 15.22%.The business had revenue of $56.50 million for the quarter, compared to the consensus estimate of $63.54 million.

Several other research analysts have also commented on HFWA. Keefe, Bruyette & Woods boosted their price target on Heritage Financial from $26.00 to $28.00 and gave the stock a "market perform" rating in a research report on Monday. Wall Street Zen downgraded shares of Heritage Financial from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $28.50.

Heritage Financial Price Performance

Shares of HFWA opened at $24.19 on Wednesday. The stock has a market capitalization of $821.25 million, a PE ratio of 16.92 and a beta of 0.56. Heritage Financial has a fifty-two week low of $19.84 and a fifty-two week high of $27.58. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.85 and a current ratio of 0.85. The company has a 50 day moving average price of $23.93 and a 200-day moving average price of $23.63.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Jennison Associates LLC raised its stake in Heritage Financial by 8.2% in the 2nd quarter. Jennison Associates LLC now owns 2,977,315 shares of the financial services provider's stock valued at $70,979,000 after purchasing an additional 225,201 shares during the last quarter. Victory Capital Management Inc. boosted its stake in Heritage Financial by 15,727.7% during the first quarter. Victory Capital Management Inc. now owns 1,480,997 shares of the financial services provider's stock worth $36,033,000 after buying an additional 1,471,640 shares during the period. Geode Capital Management LLC boosted its position in shares of Heritage Financial by 0.4% during the 2nd quarter. Geode Capital Management LLC now owns 828,029 shares of the financial services provider's stock worth $19,741,000 after purchasing an additional 3,447 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of Heritage Financial by 13.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 504,509 shares of the financial services provider's stock worth $12,027,000 after buying an additional 59,633 shares during the period. Finally, Ameriprise Financial Inc. grew its position in Heritage Financial by 1.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 393,619 shares of the financial services provider's stock valued at $9,384,000 after acquiring an additional 6,663 shares in the last quarter. Institutional investors and hedge funds own 78.30% of the company's stock.

Heritage Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Wednesday, August 6th were given a $0.24 dividend. The ex-dividend date was Wednesday, August 6th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 4.0%. Heritage Financial's payout ratio is 67.13%.

About Heritage Financial

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. It accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit.

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