Heritage Financial Corporation (NASDAQ:HFWA) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is moderately positive: Six brokerages give Heritage Financial a consensus “Moderate Buy” rating, split evenly between three buys and three holds. The average 12-month price target is $32.50, above the reported $29.10 share price.
• Quarterly results beat expectations: Heritage Financial reported earnings of $0.57 per share versus the $0.44 consensus estimate, although revenue of $84.12 million fell short of the $86.30 million forecast.
• The company raised its dividend: The quarterly payout increased to $0.25 from $0.24, equating to an annualized dividend of $1.00 and a 3.4% yield. Meanwhile, insiders sold 24,546 shares worth approximately $729,057 during the last quarter.

Shares of Heritage Financial Corporation (NASDAQ:HFWA - Get Free Report) have been assigned an average rating of "Moderate Buy" from the six brokerages that are covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $32.50.

HFWA has been the subject of a number of research analyst reports. 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 Heritage Financial from a "strong sell" rating to a "hold" rating in a research note on Friday, June 26th. DA Davidson lifted their price target on Heritage Financial from $32.00 to $34.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Piper Sandler dropped their price target on Heritage Financial from $34.00 to $32.00 and set an "overweight" rating on the stock in a research note on Monday, April 27th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Heritage Financial in a report on Tuesday, July 7th.

Insider Buying and Selling

In other Heritage Financial news, EVP Kelli Ann Wilson sold 3,778 shares of Heritage Financial stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $29.69, for a total transaction of $112,168.82. Following the completion of the sale, the executive vice president directly owned 3,099 shares in the company, valued at approximately $92,009.31. The trade was a 54.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Jeffrey S. Lyon sold 10,000 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $30.00, for a total transaction of $300,000.00. Following the completion of the sale, the director directly owned 40,719 shares in the company, valued at $1,221,570. This trade represents a 19.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 24,546 shares of company stock worth $729,057 in the last quarter. 1.49% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Heritage Financial

Several hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP purchased a new position in shares of Heritage Financial during the 2nd quarter valued at about $40,000. EverSource Wealth Advisors LLC boosted its stake in shares of Heritage Financial by 27,871.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,958 shares of the financial services provider's stock worth $47,000 after buying an additional 1,951 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in Heritage Financial by 99.1% during the second quarter. Tower Research Capital LLC TRC now owns 2,875 shares of the financial services provider's stock worth $69,000 after acquiring an additional 1,431 shares during the period. Global Retirement Partners LLC acquired a new stake in Heritage Financial during the second quarter worth about $95,000. Finally, GAMMA Investing LLC raised its position in Heritage Financial by 12.2% during the second quarter. GAMMA Investing LLC now owns 6,519 shares of the financial services provider's stock valued at $193,000 after acquiring an additional 710 shares in the last quarter. 78.30% of the stock is owned by hedge funds and other institutional investors.

Heritage Financial Stock Performance

HFWA opened at $29.10 on Monday. Heritage Financial has a 52-week low of $21.32 and a 52-week high of $31.25. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.17. The company has a market cap of $1.19 billion, a P/E ratio of 13.86 and a beta of 0.50. The firm's 50-day moving average price is $29.51 and its 200-day moving average price is $27.81.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last released its earnings results on Thursday, July 23rd. The financial services provider reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.44 by $0.13. The company had revenue of $84.12 million during the quarter, compared to analysts' expectations of $86.30 million. Heritage Financial had a net margin of 20.44% and a return on equity of 8.78%. As a group, equities analysts anticipate that Heritage Financial will post 2.37 EPS for the current fiscal year.

Heritage Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Wednesday, August 5th were given a $0.25 dividend. This is an increase from Heritage Financial's previous quarterly dividend of $0.24. This represents a $1.00 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date was Wednesday, August 5th. Heritage Financial's payout ratio is currently 47.62%.

Heritage Financial Company Profile

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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