Hilltop (NYSE:HTH) Issues Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Hilltop Holdings reported earnings of $0.74 per share, exceeding analysts' expectations of $0.47 by $0.27, indicating strong financial performance for the quarter.
• The company maintains a net margin of 8.90% and a return on equity of 6.46%, showcasing its profitability and efficient use of equity capital.
• Insider trading activity included a significant purchase by Chairman Jonathan S. Sobel of 10,000 shares, reflecting confidence in the company's future and increasing his ownership stake.

Hilltop (NYSE:HTH - Get Free Report) posted its earnings results on Thursday. The financial services provider reported $0.74 EPS for the quarter, topping the consensus estimate of $0.49 by $0.25, Zacks reports. Hilltop had a return on equity of 6.46% and a net margin of 8.90%.The business had revenue of $330.20 million during the quarter, compared to analysts' expectations of $309.68 million. During the same period in the previous year, the business earned $0.46 earnings per share.

Hilltop Stock Down 0.3%

Shares of HTH stock opened at $32.50 on Friday. Hilltop has a 12-month low of $26.67 and a 12-month high of $36.13. The business has a 50-day moving average price of $33.69 and a two-hundred day moving average price of $31.31. The firm has a market cap of $2.05 billion, a P/E ratio of 14.57 and a beta of 0.87.

Wall Street Analysts Forecast Growth

HTH has been the subject of several recent analyst reports. Weiss Ratings restated a "buy (b)" rating on shares of Hilltop in a research report on Wednesday, October 8th. Wall Street Zen upgraded Hilltop from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Finally, Zacks Research upgraded Hilltop from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $32.00.

Insider Activity

In related news, Chairman Jonathan S. Sobel bought 10,000 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The stock was bought at an average cost of $35.36 per share, for a total transaction of $353,600.00. Following the acquisition, the chairman directly owned 127,429 shares of the company's stock, valued at $4,505,889.44. The trade was a 8.52% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve B. Thompson sold 6,640 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $32.68, for a total value of $216,995.20. Following the sale, the chief executive officer owned 102,998 shares of the company's stock, valued at $3,365,974.64. This represents a 6.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have purchased a total of 60,000 shares of company stock valued at $2,022,800 over the last 90 days. 29.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hilltop

Several institutional investors have recently bought and sold shares of the stock. Caxton Associates LLP purchased a new stake in Hilltop in the 2nd quarter worth approximately $310,000. Public Sector Pension Investment Board lifted its holdings in Hilltop by 6.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 155,293 shares of the financial services provider's stock worth $4,713,000 after buying an additional 9,280 shares during the period. Tower Research Capital LLC TRC lifted its holdings in Hilltop by 77.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,805 shares of the financial services provider's stock worth $237,000 after buying an additional 3,416 shares during the period. Captrust Financial Advisors purchased a new stake in Hilltop in the 2nd quarter worth approximately $244,000. Finally, Cubist Systematic Strategies LLC lifted its holdings in Hilltop by 148.8% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 219,060 shares of the financial services provider's stock worth $6,648,000 after buying an additional 131,016 shares during the period. 57.13% of the stock is currently owned by hedge funds and other institutional investors.

About Hilltop

Hilltop Holdings Inc provides business and consumer banking services. It operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance.