Hilltop (NYSE:HTH) Rating Increased to Hold at Wall Street Zen

Key Points

• Rating upgrade: Wall Street Zen raised Hilltop from "sell" to "hold," and the stock carries a consensus Hold rating with a $37.50 consensus price target (Keefe, Bruyette & Woods raised its target to $39).
• Q1 results: Hilltop reported $0.64 EPS vs. $0.54 expected—driven by higher net interest income and lower provisions—while revenue slightly missed (~$300.5M vs. ~$305M), and the board declared a $0.20 quarterly dividend.
• Insider selling: Major shareholder Gerald J. Ford sold 259,771 shares (~$9.87M) and the CEO sold 26,000 shares, with insiders selling ~294,796 shares (~$11.2M) over three months while still owning about 29.90% of the stock.

Hilltop (NYSE:HTH - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday.

A number of other equities analysts also recently commented on the stock. Keefe, Bruyette & Woods boosted their target price on shares of Hilltop from $34.00 to $39.00 and gave the stock a "market perform" rating in a research note on Tuesday, February 3rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Hilltop in a research note on Tuesday. Finally, Zacks Research downgraded shares of Hilltop from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 4th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Hilltop has a consensus rating of "Hold" and a consensus price target of $37.50.

Hilltop Trading Down 3.4%

Shares of HTH stock opened at $36.68 on Friday. The firm has a fifty day moving average price of $36.81 and a 200 day moving average price of $35.40. The company has a market cap of $2.18 billion, a P/E ratio of 13.89 and a beta of 0.92. Hilltop has a 12 month low of $28.43 and a 12 month high of $40.41.

Hilltop (NYSE:HTH - Get Free Report) last issued its earnings results on Thursday, April 23rd. The financial services provider reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $0.10. The firm had revenue of $300.51 million during the quarter, compared to the consensus estimate of $304.87 million. Hilltop had a net margin of 10.13% and a return on equity of 7.29%. During the same quarter in the previous year, the firm posted $0.65 earnings per share. On average, equities analysts forecast that Hilltop will post 2.04 EPS for the current year.

Insider Activity

In related news, major shareholder Gerald J. Ford sold 259,771 shares of the stock in a transaction dated 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 directly owned 7,867 shares of the company's stock, valued at $298,788.66. This represents a 97.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Martin Bradley Winges sold 26,000 shares of the stock in a transaction dated 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 directly owned 65,831 shares of the company's stock, valued at $2,531,860.26. This represents a 28.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 294,796 shares of company stock valued at $11,225,619. Insiders own 29.90% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its holdings in Hilltop by 0.8% during the second quarter. Ameriprise Financial Inc. now owns 870,474 shares of the financial services provider's stock worth $26,419,000 after purchasing an additional 7,302 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in Hilltop by 32.0% during the first quarter. Goldman Sachs Group Inc. now owns 796,277 shares of the financial services provider's stock worth $24,247,000 after purchasing an additional 192,991 shares in the last quarter. Millennium Management LLC raised its holdings in Hilltop by 3.7% during the third quarter. Millennium Management LLC now owns 762,326 shares of the financial services provider's stock worth $25,477,000 after purchasing an additional 27,203 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in Hilltop by 37.5% during the third quarter. Jacobs Levy Equity Management Inc. now owns 711,802 shares of the financial services provider's stock worth $23,788,000 after purchasing an additional 194,287 shares in the last quarter. Finally, UBS Group AG raised its holdings in Hilltop by 42.3% during the third quarter. UBS Group AG now owns 647,003 shares of the financial services provider's stock worth $21,623,000 after purchasing an additional 192,439 shares in the last quarter. 57.13% of the stock is owned by hedge funds and other institutional investors.

Hilltop News Summary

Here are the key news stories impacting Hilltop this week:

• Positive Sentiment: Q1 EPS beat expectations — Hilltop reported $0.64 EPS vs. consensus ~$0.54, driven by higher net interest income; management also highlighted improved provision levels. Read More.
• Positive Sentiment: Net interest income rose and credit‑loss provisions plunged, which supported profitability despite headwinds in other areas. This operational improvement is a near‑term positive for margins and earnings. Read More.
• Positive Sentiment: Dividend and capital returns — Board declared a $0.20 quarterly dividend (ex‑div May 8) and the company signaled progress on its capital‑return plan, supporting yield and shareholder returns. Read More.
• Neutral Sentiment: Earnings call and management commentary are available — review the Q1 transcript for color on deposit trends, margin outlook and capital actions (useful for gauging management confidence but no new headline change). Read More.
• Neutral Sentiment: Company slide deck and press release provide detailed metrics (LOAN mix, NPA trends, segment results) for investor modeling. Read More.
• Negative Sentiment: Revenue and non‑interest income missed expectations — consolidated revenue was ~$300.5M vs. consensus ~$305M, and lower non‑interest income trimmed upside versus the EPS beat. Read More.
• Negative Sentiment: Deposit decline and portfolio risks — deposits fell ~3.2% YoY; management/analysts flagged high CRE exposure (about 43% of loans) and rising nonperforming asset ratios, increasing downside risk if local Texas commercial real estate weakens. Read More.

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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