Heritage Commerce (NASDAQ:HTBK) Trading 9.8% Higher on Better-Than-Expected Earnings

Heritage Commerce Corp (NASDAQ:HTBK)’s share price traded up 9.8% on Friday after the company announced better than expected quarterly earnings. The company traded as high as $10.74 and last traded at $10.69. 129,269 shares were traded during trading, a decline of 68% from the average session volume of 408,565 shares. The stock had previously closed at $9.74.

The financial services provider reported $0.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.03. Heritage Commerce had a net margin of 16.31% and a return on equity of 7.20%. The firm had revenue of $50.01 million for the quarter, compared to the consensus estimate of $48.90 million.

Heritage Commerce Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 20th. Shareholders of record on Thursday, November 6th will be issued a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, November 6th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 4.9%. Heritage Commerce’s dividend payout ratio (DPR) is presently 82.54%.

Analysts Set New Price Targets

A number of brokerages have issued reports on HTBK. Zacks Research cut Heritage Commerce from a “hold” rating to a “strong sell” rating in a report on Monday, October 13th. Piper Sandler began coverage on Heritage Commerce in a report on Friday, October 10th. They set an “overweight” rating and a $11.00 price objective for the company. Weiss Ratings reissued a “hold (c)” rating on shares of Heritage Commerce in a report on Wednesday, October 8th. Finally, Wall Street Zen raised Heritage Commerce from a “sell” rating to a “hold” rating in a report on Saturday. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $10.75.

Insider Activity

In other Heritage Commerce news, COO Thomas A. Sa purchased 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 1st. The stock was acquired at an average cost of $9.25 per share, with a total value of $185,000.00. Following the completion of the acquisition, the chief operating officer directly owned 20,000 shares of the company’s stock, valued at $185,000. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.71% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. PNC Financial Services Group Inc. raised its holdings in shares of Heritage Commerce by 143.5% in the first quarter. PNC Financial Services Group Inc. now owns 2,851 shares of the financial services provider’s stock valued at $27,000 after buying an additional 1,680 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Heritage Commerce by 16,272.7% in the second quarter. EverSource Wealth Advisors LLC now owns 5,403 shares of the financial services provider’s stock valued at $54,000 after buying an additional 5,370 shares during the last quarter. US Bancorp DE raised its holdings in shares of Heritage Commerce by 66.7% in the first quarter. US Bancorp DE now owns 5,789 shares of the financial services provider’s stock valued at $55,000 after buying an additional 2,316 shares during the last quarter. D.A. Davidson & CO. bought a new position in shares of Heritage Commerce in the third quarter valued at about $101,000. Finally, Martingale Asset Management L P bought a new position in shares of Heritage Commerce in the first quarter valued at about $103,000. 75.55% of the stock is owned by institutional investors.

Heritage Commerce Price Performance

The stock has a fifty day moving average of $10.03 and a 200-day moving average of $9.66. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $651.37 million, a P/E ratio of 15.14 and a beta of 0.85.

Heritage Commerce Company Profile

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. Its deposit products for business banking and retail markets include interest and non-interest-bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits.