BlackRock Inc. Purchases Shares of 5,811,114 Heritage Financial Corporation $HFWA

Key Points

• BlackRock acquired 5.81 million shares of Heritage Financial in the second quarter, worth approximately $172.1 million and representing a 14.1% stake. Institutional investors and hedge funds collectively own 78.3% of HFWA.
• Heritage Financial reported quarterly earnings of $0.57 per share, beating analyst expectations of $0.44, although revenue of $84.12 million fell short of the $86.30 million estimate.
• The company increased its quarterly dividend to $0.25, or $1.00 annually, for a 3.5% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $32.50.

BlackRock Inc. acquired a new stake in Heritage Financial Corporation (NASDAQ:HFWA - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm acquired 5,811,114 shares of the financial services provider's stock, valued at approximately $172,125,000. BlackRock Inc. owned 14.10% of Heritage Financial at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of HFWA. Deutsche Bank AG acquired a new stake in shares of Heritage Financial in the second quarter valued at approximately $1,323,000. Global Retirement Partners LLC acquired a new position in shares of Heritage Financial during the 2nd quarter worth approximately $95,000. Bank of New York Mellon Corp bought a new stake in Heritage Financial in the 2nd quarter valued at $11,817,000. GAMMA Investing LLC lifted its holdings in Heritage Financial by 12.2% during the 2nd quarter. GAMMA Investing LLC now owns 6,519 shares of the financial services provider's stock valued at $193,000 after purchasing an additional 710 shares during the last quarter. Finally, Rhino Investment Partners Inc lifted its holdings in Heritage Financial by 77.7% during the 1st quarter. Rhino Investment Partners Inc now owns 330,459 shares of the financial services provider's stock valued at $8,592,000 after purchasing an additional 144,515 shares during the last quarter. 78.30% of the stock is currently owned by institutional investors and hedge funds.

Heritage Financial Price Performance

HFWA stock opened at $28.66 on Friday. The company's 50-day moving average price is $29.58 and its two-hundred day moving average price is $27.85. The firm has a market cap of $1.17 billion, a P/E ratio of 13.65 and a beta of 0.50. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.17. Heritage Financial Corporation has a 12 month low of $21.32 and a 12 month high of $31.25.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.13. Heritage Financial had a return on equity of 8.78% and a net margin of 20.44%.The business had revenue of $84.12 million for the quarter, compared to analyst estimates of $86.30 million. On average, analysts anticipate that Heritage Financial Corporation will post 2.37 earnings per share for the current fiscal year.

Heritage Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Wednesday, August 5th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend was Wednesday, August 5th. This is a boost from Heritage Financial's previous quarterly dividend of $0.24. Heritage Financial's payout ratio is currently 47.62%.

Insider Transactions at Heritage Financial

In other news, Director Jeffrey S. Lyon sold 10,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $30.00, for a total transaction of $300,000.00. Following the sale, the director directly owned 40,719 shares in the company, valued at approximately $1,221,570. The trade was a 19.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Donald Hinson sold 3,842 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $28.37, for a total value of $108,997.54. Following the completion of the transaction, the chief financial officer directly owned 41,241 shares of the company's stock, valued at $1,170,007.17. This represents a 8.52% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 24,546 shares of company stock valued at $729,057. 1.49% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

HFWA has been the topic of several research reports. Keefe, Bruyette & Woods upped their price objective on shares of Heritage Financial from $31.00 to $32.00 and gave the company a "market perform" rating in a report on Monday, July 27th. Wall Street Zen raised shares of Heritage Financial from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Zacks Research upgraded shares of Heritage Financial from a "strong sell" rating to a "hold" rating in a research note on Friday, June 26th. Weiss Ratings reissued a "buy (b)" rating on shares of Heritage Financial in a report on Tuesday, July 7th. Finally, DA Davidson raised their price objective on shares of Heritage Financial from $32.00 to $34.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $32.50.

About Heritage Financial

Heritage Financial Corporation NASDAQ: HFWA is a bank holding company headquartered in Spokane, Washington. Through its primary subsidiary, Heritage Bank, the company provides a comprehensive range of banking and financial services to both individual and commercial clients. Heritage Bank's offerings encompass deposit products, lending solutions, treasury and cash management services, mortgage banking, and wealth management, positioning the organization as a full-service community bank.

The company's lending portfolio includes commercial real estate loans, agricultural loans, small business administration (SBA) loans, construction and development financing, and a variety of consumer mortgage products.

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