Heritage Financial (NASDAQ:HFWA) Shares Break Below Fifty Day Moving Average - Should You Sell?

Key Points

• Heritage Financial shares dipped below their 50-day moving average, touching $28.06 and last trading at $28.19, compared with a 50-day average of $28.24.
• Analysts have an average “Moderate Buy” rating and a $32.67 price target; four rate the stock Buy and four Hold.
• The company beat quarterly earnings expectations, reporting $0.55 per share versus a $0.50 estimate, and announced a $0.25 quarterly dividend, equivalent to a 3.5% yield.

Heritage Financial Corporation (NASDAQ:HFWA - Get Free Report)'s share price passed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $28.24 and traded as low as $28.06. Heritage Financial shares last traded at $28.19, with a volume of 187,784 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Zacks Research upgraded shares of Heritage Financial from a "strong sell" rating to a "hold" rating in a research note on Thursday, October 22nd. Brean Capital upgraded shares of Heritage Financial from a "neutral" rating to a "buy" rating and set a $33.00 target price for the company in a research note on Tuesday, September 22nd. Capital One Financial set a $33.00 target price on shares of Heritage Financial in a research note on Tuesday, September 22nd. DA Davidson raised their price target on Heritage Financial from $32.00 to $34.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Finally, Stephens boosted their price target on Heritage Financial from $30.00 to $32.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 28th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $32.67.

Heritage Financial Stock Down 0.7%

The company has a market capitalization of $1.14 billion, a price-to-earnings ratio of 14.02 and a beta of 0.53. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.13. The firm's 50 day simple moving average is $28.24 and its 200-day simple moving average is $27.89.

Heritage Financial (NASDAQ:HFWA - Get Free Report) last released its earnings results on Thursday, October 22nd. The financial services provider reported $0.55 EPS for the quarter, topping the consensus estimate of $0.50 by $0.05. The company had revenue of $86.51 million during the quarter, compared to analysts' expectations of $86.11 million. Heritage Financial had a net margin of 19.24% and a return on equity of 8.70%. On average, sell-side analysts anticipate that Heritage Financial Corporation will post 2.32 EPS for the current fiscal year.

Heritage Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, November 4th will be given a $0.25 dividend. The ex-dividend date is Wednesday, November 4th. This represents a $1.00 dividend on an annualized basis and a yield of 3.5%. Heritage Financial's dividend payout ratio (DPR) is presently 49.75%.

Insiders Place Their Bets

In other Heritage Financial news, Director Frederick Rivera sold 1,300 shares of Heritage Financial stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $28.57, for a total value of $37,141.00. Following the sale, the director owned 5,890 shares of the company's stock, valued at approximately $168,277.30. The trade was a 18.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.49% of the company's stock.

Hedge Funds Weigh In On Heritage Financial

Large investors have recently modified their holdings of the business. Bank of America Corp DE purchased a new stake in shares of Heritage Financial in the second quarter valued at approximately $5,557,000. Legal & General Group Plc acquired a new position in Heritage Financial during the second quarter worth $2,665,000. Heartland Advisors Inc. purchased a new position in Heritage Financial in the second quarter worth $8,146,000. Bank of New York Mellon Corp purchased a new position in Heritage Financial in the second quarter worth $11,817,000. Finally, Rhino Investment Partners Inc lifted its holdings in Heritage Financial by 77.7% in the first quarter. Rhino Investment Partners Inc now owns 330,459 shares of the financial services provider's stock valued at $8,592,000 after acquiring an additional 144,515 shares during the period. 78.30% of the stock is owned by hedge funds and other institutional investors.

Heritage Financial Company Profile

Heritage Financial Corporation is a bank holding company whose principal subsidiary, Heritage Bank, provides commercial and consumer banking services. Its offerings include business and personal deposit accounts, commercial and residential lending, mortgage services, cash management and other banking services. The company serves individuals, businesses and organizations in Washington and Oregon, with a focus on communities in the Pacific Northwest. Its services include financing for businesses and real estate, as well as everyday banking and digital account services.

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