Heritage Commerce (NASDAQ:HTBK) Stock Price Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• Heritage Commerce stock recently crossed above its 200-day moving average ($11.72) and was last trading at $12.89, which is above the consensus analyst price target of $12.25, suggesting near-term technical momentum.
• The company posted a strong quarter, with EPS of $0.28 versus $0.23 expected and revenue of $104.04M versus $50.78M expected, reflecting a notable earnings beat and a 17.77% net margin.
• Heritage declared a quarterly dividend of $0.13 (annualized $0.52, yield ~4.0%) and has seen sizable institutional inflows, with institutions owning about 75.55% of the shares.

Heritage Commerce Corp (NASDAQ:HTBK - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $11.72 and traded as high as $12.92. Heritage Commerce shares last traded at $12.89, with a volume of 514,956 shares traded.

Wall Street Analysts Forecast Growth

Several research firms recently commented on HTBK. Wall Street Zen downgraded shares of Heritage Commerce from a "hold" rating to a "sell" rating in a research report on Saturday, December 20th. Raymond James Financial downgraded shares of Heritage Commerce from an "outperform" rating to a "market perform" rating in a research report on Wednesday, January 7th. DA Davidson reiterated a "neutral" rating and set a $14.50 target price on shares of Heritage Commerce in a research report on Wednesday, February 4th. Stephens reiterated an "equal weight" rating on shares of Heritage Commerce in a research report on Monday, January 5th. Finally, Weiss Ratings upgraded shares of Heritage Commerce from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $12.25.

Heritage Commerce Stock Up 0.7%

The stock has a market cap of $793.90 million, a price-to-earnings ratio of 16.53 and a beta of 0.69. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 0.06. The stock's 50-day moving average price is $12.74 and its 200-day moving average price is $11.72.

Heritage Commerce (NASDAQ:HTBK - Get Free Report) last issued its quarterly earnings results on Thursday, January 22nd. The financial services provider reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.05. The firm had revenue of $104.04 million for the quarter, compared to the consensus estimate of $50.78 million. Heritage Commerce had a net margin of 17.77% and a return on equity of 8.07%. On average, sell-side analysts expect that Heritage Commerce Corp will post 0.8 earnings per share for the current year.

Heritage Commerce Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Wednesday, March 25th will be given a $0.13 dividend. The ex-dividend date is Wednesday, March 25th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 4.0%. Heritage Commerce's payout ratio is 66.67%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of HTBK. HoldCo Asset Management LP acquired a new position in shares of Heritage Commerce in the 2nd quarter worth approximately $16,121,000. First Trust Capital Management L.P. acquired a new position in shares of Heritage Commerce in the 4th quarter worth approximately $18,616,000. Balyasny Asset Management L.P. acquired a new position in shares of Heritage Commerce in the 4th quarter worth approximately $15,627,000. Versor Investments LP lifted its position in shares of Heritage Commerce by 904.2% in the 4th quarter. Versor Investments LP now owns 740,090 shares of the financial services provider's stock worth $8,888,000 after purchasing an additional 666,390 shares during the period. Finally, ABC Arbitrage SA acquired a new position in shares of Heritage Commerce during the 4th quarter valued at $6,975,000. Institutional investors and hedge funds own 75.55% of the company's stock.

Heritage Commerce Company Profile

Heritage Commerce Corporation, headquartered in Farmington Hills, Michigan, is the bank holding company for Heritage Bank, N.A., a community-oriented financial institution. Traded on NASDAQ under the symbol HTBK, the company focuses on delivering tailored banking services to businesses, professionals and individuals throughout Southeastern Michigan.

Heritage Bank, N.A. offers a comprehensive portfolio of deposit and lending products designed to meet the needs of commercial and consumer clients.

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