Heritage Financial (HFWA) Stock Price, News & Analysis

Company Overview

Heritage Financial Corporation (NASDAQ:HFWA) is a bank holding company based in Olympia, Washington, serving communities across Washington, Oregon and Idaho through its subsidiary, Heritage Bank. The company provides a full range of commercial and retail banking services tailored to meet the needs of businesses, individuals and public entities. With a network of branches and loan production offices, Heritage Financial combines local decision-making with the resources of a regional financial institution.

The company’s core business activities include deposit gathering, commercial lending, mortgage origination and servicing, and treasury management services. Heritage Bank offers checking and savings accounts, certificates of deposit, online and mobile banking platforms, and merchant services for small and mid-sized businesses. On the lending side, the institution extends lines of credit, term loans, construction financing and equipment financing to support commercial growth, while its residential mortgage division provides purchase and refinance solutions.

Heritage Financial traces its roots to a community bank founded in the mid-20th century, evolving through strategic branch expansions and acquisitions. Over the years, the company has expanded its footprint by integrating community financial institutions that share its commitment to relationship-based banking. This growth strategy has enabled Heritage Financial to broaden its geographic reach while maintaining a focus on personalized service and local market expertise.

Under the leadership of President and Chief Executive Officer Dan K. Olsen and an experienced executive team, Heritage Financial places emphasis on community involvement, strong governance practices and disciplined risk management. The company’s board of directors, comprised of regional business and civic leaders, guides corporate strategy and oversees compliance with regulatory standards. Through a combination of regional presence and community engagement, Heritage Financial aims to deliver consistent, long-term value for its shareholders and customers.

Key Stats

• Today's Range: $24.97 to $25.62
• 50-Day Range: $22.32 to $25.73
• 52-Week Range: $19.84 to $27.58
• Volume: 106,665 shs
• Average Volume: 208,005 shs
• Market Capitalization: $855.48 million
• P/E Ratio: 16.95
• Dividend Yield: 3.83%
• Price Target: $27.67
• Consensus Rating: Hold

Heritage Financial Stock Analysis - MarketRank™

Heritage Financial scored higher than 77% of companies evaluated by MarketBeat, and ranked 344th out of 933 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.2 / 5
• Analyst Rating: Hold

Consensus Rating

Heritage Financial has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 1 buy rating, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Heritage Financial has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 9.09%

Earnings Growth

Earnings for Heritage Financial are expected to grow by 9.09% in the coming year, from $2.09 to $2.28 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Heritage Financial is 16.95, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.51.

Price to Earnings Ratio vs. Sector

The P/E ratio of Heritage Financial is 16.95, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 19.17.

Price to Book Value per Share Ratio

Heritage Financial has a P/B Ratio of 0.99. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

2.97% of the float of Heritage Financial has been sold short.

Short Interest Ratio / Days to Cover

Heritage Financial has a short interest ratio ("days to cover") of 5.

Change versus previous month

Short interest in Heritage Financial has recently increased by 9.02%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 5.0 / 5
• Dividend Strength: Strong

Dividend Leadership

Heritage Financial is a leading dividend payer. It pays a dividend yield of 3.79%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Heritage Financial has been increasing its dividend for 14 years.

Dividend Coverage

The dividend payout ratio of Heritage Financial is 64.86%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Heritage Financial will have a dividend payout ratio of 42.11% next year. This indicates that Heritage Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.97% of the float of Heritage Financial has been sold short.

Short Interest Ratio / Days to Cover

Heritage Financial has a short interest ratio ("days to cover") of 5.

Change versus previous month

Short interest in Heritage Financial has recently increased by 9.02%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.0 / 5
• News Sentiment: 0.65

News Sentiment

Heritage Financial has a news sentiment score of 0.65. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.91 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Heritage Financial this week, compared to 3 articles on an average week.

MarketBeat Follows

2 people have added Heritage Financial to their MarketBeat watchlist in the last 30 days. This is an increase of 100% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Heritage Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.80% of the stock of Heritage Financial is held by insiders.

Percentage Held by Institutions

78.30% of the stock of Heritage Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

HFWA Stock Analysis - Frequently Asked Questions

How have HFWA shares performed this year?

Heritage Financial's stock was trading at $24.50 on January 1st, 2025. Since then, HFWA shares have increased by 2.4% and is now trading at $25.08.

How were Heritage Financial's earnings last quarter?

Heritage Financial Corporation (NASDAQ:HFWA) announced its quarterly earnings data on Thursday, April, 24th. The financial services provider reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.03. The financial services provider had revenue of $57.59 million for the quarter, compared to the consensus estimate of $61.74 million. Heritage Financial had a net margin of 15.73% and a trailing twelve-month return on equity of 7.12%.
Read the conference call transcript.

Who are Heritage Financial's major shareholders?

Top institutional shareholders of Heritage Financial include Kiley Juergens Wealth Management LLC (0.68%), State of Alaska Department of Revenue (0.06%), Marshall & Sullivan Inc. WA (0.02%) and GAMMA Investing LLC (0.01%). Insiders that own company stock include Brian L Vance, Jeffrey J Deuel, John A Clees, Donald Hinson, Jeffrey S Lyon, Brian Charneski, Amy E Curran, Tony Chalfant, Cindy M Huntley and Frederick B Rivera.
View institutional ownership trends.

How do I buy shares of Heritage Financial?

Shares of HFWA stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Heritage Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Heritage Financial investors own include American Water Works (AWK), Waste Connections (WCN), DiamondRock Hospitality (DRH), AU Optronics (AUOTY), The RMR Group (RMR), iShares Micro-Cap ETF (IWC) and Voyager Therapeutics (VYGR).

Company Calendar

• Last Earnings: 4/24/2025
• Record date for 5/21 Dividend: 5/07/2025
• Ex-Dividend for 5/21 Dividend: 5/07/2025
• Dividend Payable: 5/21/2025
• Today: 7/18/2025
• Next Earnings (Estimated): 7/24/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - SVGS & LOAN
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:HFWA
• CIK: 1046025
• Web: www.hf-wa.com
• Phone: (360) 943-1500
• Fax: 360-352-0864
• Employees: 830
• Year Founded: 1927

Price Target and Rating

• Average Price Target for Heritage Financial: $27.67
• High Price Target: $31.00
• Low Price Target: $26.00
• Potential Upside/Downside: +10.3%
• Consensus Rating: Hold
• Rating Score (0-4): 2.33
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.48
• Trailing P/E Ratio: 16.95
• Forward P/E Ratio: 12.00
• P/E Growth: N/A
• Net Income: $43.26 million
• Net Margins: 15.73%
• Pretax Margin: 18.82%
• Return on Equity: 7.12%
• Return on Assets: 0.87%

Debt

• Debt-to-Equity Ratio: 0.33
• Current Ratio: 0.84
• Quick Ratio: 0.84

Sales & Book Value

• Annual Sales: $317.18 million
• Price / Sales: 2.70
• Cash Flow: $1.96 per share
• Price / Cash Flow: 12.77
• Book Value: $25.28 per share
• Price / Book: 0.99

Miscellaneous

• Outstanding Shares: 34,110,000
• Free Float: 33,492,000
• Market Cap: $855.48 million
• Optionable: Optionable
• Beta: 0.54