Hilltop (NYSE:HTH) Announces Quarterly Earnings Results

Key Points

• EPS beat: Hilltop reported Q earnings of $0.64 per share, beating the $0.54 consensus by $0.10, with a net margin of 10.19% and ROE of 7.47%.
• Dividend increase: The company raised its quarterly dividend to $0.20 (from $0.18), implying a $0.80 annual payout and a ~2.1% yield with a payout ratio around 30%.
• Large insider selling: Major shareholder Gerald J. Ford sold 259,771 shares (a 97% reduction) and the CEO also sold shares; insiders disposed of about 294,796 shares (~$11.23M) in the past 90 days while owning roughly 29.9% of the stock.

Hilltop (NYSE:HTH - Get Free Report) announced its earnings results on Thursday. The financial services provider reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.54 by $0.10, Zacks reports. Hilltop had a net margin of 10.19% and a return on equity of 7.47%.

Hilltop Price Performance

Shares of HTH stock traded up $0.47 during trading on Thursday, reaching $38.03. The company's stock had a trading volume of 450,483 shares, compared to its average volume of 371,924. Hilltop has a 1-year low of $28.43 and a 1-year high of $40.41. The company has a market capitalization of $2.26 billion, a price-to-earnings ratio of 14.35 and a beta of 0.92. The stock's 50-day moving average price is $36.87 and its 200 day moving average price is $35.36.

Hilltop Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. This is an increase from Hilltop's previous quarterly dividend of $0.18. The ex-dividend date was Friday, February 13th. Hilltop's dividend payout ratio (DPR) is presently 30.19%.

Insiders Place Their Bets

In other Hilltop news, major shareholder Gerald J. Ford sold 259,771 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $37.98, for a total transaction of $9,866,102.58. Following the completion of the transaction, the insider owned 7,867 shares in the company, valued at $298,788.66. The trade was a 97.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Martin Bradley Winges sold 26,000 shares of the business's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $38.46, for a total transaction of $999,960.00. Following the transaction, the chief executive officer owned 65,831 shares of the company's stock, valued at $2,531,860.26. This trade represents a 28.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 294,796 shares of company stock worth $11,225,619 in the last 90 days. Corporate insiders own 29.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CANADA LIFE ASSURANCE Co grew its holdings in Hilltop by 1.0% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 37,559 shares of the financial services provider's stock worth $1,275,000 after acquiring an additional 368 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in Hilltop by 36.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,817 shares of the financial services provider's stock worth $62,000 after acquiring an additional 483 shares in the last quarter. Victory Capital Management Inc. grew its holdings in Hilltop by 3.2% during the 3rd quarter. Victory Capital Management Inc. now owns 26,780 shares of the financial services provider's stock worth $895,000 after acquiring an additional 840 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Hilltop by 584.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,075 shares of the financial services provider's stock worth $33,000 after buying an additional 918 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in shares of Hilltop during the 3rd quarter worth approximately $43,000. Institutional investors and hedge funds own 57.13% of the company's stock.

Analysts Set New Price Targets

HTH has been the subject of several recent research reports. Keefe, Bruyette & Woods raised their price objective on shares of Hilltop from $34.00 to $39.00 and gave the company a "market perform" rating in a research note on Tuesday, February 3rd. Wall Street Zen cut shares of Hilltop from a "hold" rating to a "sell" rating in a report on Saturday, April 4th. Weiss Ratings restated a "buy (b)" rating on shares of Hilltop in a report on Tuesday. Finally, Zacks Research cut shares of Hilltop from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 4th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $37.50.

Hilltop Company Profile

Hilltop Holdings, Inc NYSE: HTH is a Dallas, Texas–based financial holding company offering commercial banking, mortgage lending and capital markets services through its three primary subsidiaries: PlainsCapital Corporation, PrimeLending and HilltopSecurities. PlainsCapital provides deposit, lending and treasury management solutions to small and mid-sized businesses, professionals and individuals. PrimeLending specializes in home purchase and refinance loans, serving retail, wholesale and correspondent channels.

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