Heritage Commerce (NASDAQ:HTBK) Cut to Sell at Zacks Investment Research
According to Zacks, “Heritage Commerce Corp. is the holding company of Heritage Bank of Commerce, Heritage Bank East Bay, Heritage Bank South Valley and Bank of Los Altos. The company offers a range of loans, primarily commercial, including real estate, construction, Small Business Administration), inventory and accounts receivable, and equipment loans. The company also accepts checking, savings, and time deposits; NOW and money market deposit accounts; and provides travelers’ checks, safe deposit, and other customary non-deposit banking services. “
Several other brokerages have also recently commented on HTBK. ValuEngine raised shares of Heritage Commerce from a sell rating to a hold rating in a research report on Thursday, July 2nd. Raymond James raised their price target on shares of Heritage Commerce from $8.00 to $9.00 and gave the company an outperform rating in a research report on Monday, April 27th. Janney Montgomery Scott raised their price target on shares of Heritage Commerce from $9.00 to $10.00 and gave the company a buy rating in a research report on Tuesday, April 28th. Piper Sandler reissued an overweight rating and issued a $9.00 price target on shares of Heritage Commerce in a research report on Monday, June 29th. Finally, BidaskClub cut shares of Heritage Commerce from a sell rating to a strong sell rating in a research report on Saturday, June 13th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus price target of $10.75.
Heritage Commerce (NASDAQ:HTBK) last posted its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $0.18 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.12 by $0.06. Heritage Commerce had a net margin of 17.94% and a return on equity of 8.15%. The firm had revenue of $37.02 million during the quarter, compared to analysts’ expectations of $38.46 million. On average, research analysts forecast that Heritage Commerce will post 0.61 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a $0.13 dividend. The ex-dividend date is Wednesday, August 5th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 7.67%. Heritage Commerce’s payout ratio is 48.60%.
In related news, CEO Keith Wilton sold 3,713 shares of Heritage Commerce stock in a transaction on Monday, May 4th. The shares were sold at an average price of $8.36, for a total transaction of $31,040.68. Following the sale, the chief executive officer now directly owns 141,807 shares in the company, valued at approximately $1,185,506.52. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Michael Eugene Benito sold 6,250 shares of Heritage Commerce stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $6.81, for a total transaction of $42,562.50. Following the sale, the executive vice president now owns 70,037 shares in the company, valued at $476,951.97. The disclosure for this sale can be found here. Insiders sold a total of 12,693 shares of company stock worth $97,381 over the last 90 days. Company insiders own 4.30% of the company’s stock.
A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. raised its stake in Heritage Commerce by 3.2% during the 1st quarter. BlackRock Inc. now owns 4,442,431 shares of the financial services provider’s stock worth $34,072,000 after acquiring an additional 136,767 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in Heritage Commerce by 0.8% during the 1st quarter. Thrivent Financial for Lutherans now owns 2,397,979 shares of the financial services provider’s stock worth $18,393,000 after acquiring an additional 19,391 shares in the last quarter. State Street Corp raised its stake in Heritage Commerce by 8.3% during the 1st quarter. State Street Corp now owns 1,231,062 shares of the financial services provider’s stock worth $9,442,000 after acquiring an additional 94,184 shares in the last quarter. Bank of New York Mellon Corp raised its stake in Heritage Commerce by 19.3% during the 1st quarter. Bank of New York Mellon Corp now owns 1,158,107 shares of the financial services provider’s stock worth $8,884,000 after acquiring an additional 187,680 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Heritage Commerce by 8.1% during the 1st quarter. Geode Capital Management LLC now owns 825,504 shares of the financial services provider’s stock worth $6,331,000 after purchasing an additional 61,804 shares during the last quarter. Hedge funds and other institutional investors own 69.62% of the company’s stock.
About Heritage Commerce
Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. It offers a range of deposit products for business banking and retail markets, including interest and non-interest bearing demand, savings accounts, certificate of deposit, money market accounts, and time deposits.
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