Heartflow (NASDAQ:HTFL) Reaches New 12-Month High - Still a Buy?

Key Points

• Heartflow shares reached a new 52-week high, trading as high as $54.82 and rising 7.8%, giving the company a market capitalization of approximately $4.78 billion.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $48.62, although recent opinions range from “Strong Buy” to “Sell” and several targets remain below the current share price.
• The company reported stronger-than-expected quarterly results, including an adjusted loss of $0.07 per share versus the $0.22 expected and 47.7% year-over-year revenue growth to $64.08 million; however, Heartflow remains unprofitable, while insiders sold about $14.2 million of stock over the past three months.

Heartflow, Inc. (NASDAQ:HTFL - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday. The company traded as high as $54.82 and last traded at $54.6360, with a volume of 765,055 shares changing hands. The stock had previously closed at $51.02.

Analyst Ratings Changes

HTFL has been the subject of a number of research analyst reports. Wall Street Zen downgraded Heartflow from a "buy" rating to a "hold" rating in a research report on Saturday. Morgan Stanley boosted their price objective on Heartflow from $35.00 to $40.00 and gave the company an "equal weight" rating in a research note on Friday, August 14th. Freedom Capital raised shares of Heartflow to a "strong-buy" rating in a report on Tuesday, June 30th. Stifel Nicolaus raised their price target on Heartflow from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Finally, UBS Group started coverage on Heartflow in a research note on Wednesday, September 9th. They issued a "neutral" rating and a $55.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Heartflow currently has a consensus rating of "Moderate Buy" and an average target price of $48.62.

Heartflow Stock Up 7.8%

The stock has a market cap of $4.78 billion, a PE ratio of -30.05 and a beta of 2.73. The stock's fifty day moving average price is $47.70 and its 200 day moving average price is $35.53.

Heartflow (NASDAQ:HTFL - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The company reported ($0.07) earnings per share for the quarter, beating the consensus estimate of ($0.22) by $0.15. Heartflow had a negative net margin of 55.82% and a negative return on equity of 23.52%. The firm had revenue of $64.08 million during the quarter. Heartflow's revenue for the quarter was up 47.7% compared to the same quarter last year. On average, equities research analysts expect that Heartflow, Inc. will post -0.75 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO John Farquhar sold 38,900 shares of the company's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $49.57, for a total transaction of $1,928,273.00. Following the completion of the transaction, the chief executive officer owned 283,014 shares in the company, valued at approximately $14,029,003.98. This represents a 12.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vikram Verghese sold 29,714 shares of the firm's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $50.06, for a total value of $1,487,482.84. Following the transaction, the chief financial officer owned 184,789 shares of the company's stock, valued at approximately $9,250,537.34. The trade was a 13.85% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 304,105 shares of company stock worth $14,173,800 in the last three months. 7.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Heartflow

Several institutional investors have recently added to or reduced their stakes in HTFL. GAMMA Investing LLC lifted its holdings in Heartflow by 75.1% in the third quarter. GAMMA Investing LLC now owns 641 shares of the company's stock valued at $32,000 after acquiring an additional 275 shares during the period. IFP Advisors Inc raised its stake in shares of Heartflow by 844.7% during the 3rd quarter. IFP Advisors Inc now owns 803 shares of the company's stock worth $40,000 after buying an additional 718 shares during the period. Integrated Wealth Concepts LLC acquired a new position in shares of Heartflow during the 2nd quarter worth about $53,000. Essential Partners LLC acquired a new stake in Heartflow in the 1st quarter valued at about $57,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in Heartflow in the 4th quarter valued at $72,000.

About Heartflow

Heartflow, Inc is a medical technology company that develops artificial intelligence-based tools to help physicians diagnose and manage coronary artery disease. Its platform uses data from coronary computed tomography angiography (CCTA) scans to create personalized, three-dimensional models of a patient's coronary arteries and provide noninvasive assessments of blood flow and disease.

The company's products include Heartflow Analysis, which provides fractional flow reserve computed tomography (FFR-CT) evaluations to help identify potentially significant blockages, as well as tools for assessing coronary plaque and planning treatment.

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