Heritage Commerce (NASDAQ:HTBK) Trading Up 9.8% Following Better-Than-Expected Earnings

Key Points

• Heritage Commerce Corp shares rose by 9.8% following a quarterly earnings report that exceeded analyst expectations, reporting $0.24 EPS against a consensus estimate of $0.21.
• The company declared a quarterly dividend of $0.13 per share, with a yield of 4.9%, to be distributed on November 20th to shareholders of record on November 6th.
• Analysts have mixed ratings on the stock, with a consensus rating of "Hold" and a price target of $10.75, following recent downgrades from some firms.

Heritage Commerce Corp (NASDAQ:HTBK - Get Free Report) shares shot up 9.8% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $10.74 and last traded at $10.69. 129,269 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 408,565 shares. The stock had previously closed at $9.74.

The financial services provider reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.21 by $0.03. The business had revenue of $50.01 million during the quarter, compared to the consensus estimate of $48.90 million. Heritage Commerce had a net margin of 15.00% and a return on equity of 6.61%.

Heritage Commerce Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 20th. Shareholders of record on Thursday, November 6th will be paid a dividend of $0.13 per share. The ex-dividend date is Thursday, November 6th. This represents a $0.52 annualized dividend and a yield of 4.9%. Heritage Commerce's dividend payout ratio is currently 82.54%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on HTBK shares. Zacks Research lowered Heritage Commerce from a "hold" rating to a "strong sell" rating in a research report on Monday, October 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Heritage Commerce in a research note on Wednesday, October 8th. Wall Street Zen lowered Heritage Commerce from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Finally, Piper Sandler assumed coverage on Heritage Commerce in a research report on Friday, October 10th. They set an "overweight" rating and a $11.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Heritage Commerce has a consensus rating of "Hold" and a consensus price target of $10.75.

Insider Buying and Selling at Heritage Commerce

In other news, COO Thomas A. Sa purchased 20,000 shares of the 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 owned 20,000 shares in the company, valued at $185,000. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 2.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Heritage Commerce

Several large investors have recently bought and sold shares of HTBK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Heritage Commerce by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,402 shares of the financial services provider's stock worth $337,000 after buying an additional 1,482 shares during the last quarter. SummerHaven Investment Management LLC boosted its stake in Heritage Commerce by 1.8% during the second quarter. SummerHaven Investment Management LLC now owns 91,792 shares of the financial services provider's stock valued at $911,000 after buying an additional 1,590 shares during the period. PNC Financial Services Group Inc. increased its position in shares of Heritage Commerce by 143.5% in the first quarter. PNC Financial Services Group Inc. now owns 2,851 shares of the financial services provider's stock worth $27,000 after purchasing an additional 1,680 shares during the last quarter. Diversified Trust Co lifted its holdings in shares of Heritage Commerce by 9.2% during the 3rd quarter. Diversified Trust Co now owns 20,469 shares of the financial services provider's stock worth $203,000 after acquiring an additional 1,717 shares during the last quarter. Finally, US Bancorp DE boosted its holdings in shares of Heritage Commerce by 66.7% in the 1st quarter. US Bancorp DE now owns 5,789 shares of the financial services provider's stock worth $55,000 after purchasing an additional 2,316 shares in the last quarter. 75.55% of the stock is currently owned by institutional investors.

Heritage Commerce Price Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 0.77 and a quick ratio of 0.77. The firm's 50 day simple moving average is $10.01 and its 200 day simple moving average is $9.64. The stock has a market capitalization of $656.68 million, a PE ratio of 16.94 and a beta of 0.85.

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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