Hilltop (NYSE:HTH) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of Hilltop (NYSE:HTH) from a hold rating to a strong sell rating in a research note published on Thursday,Zacks.com reports.

Several other equities analysts have also issued reports on HTH. Weiss Ratings reissued a “buy (b)” rating on shares of Hilltop in a report on Tuesday. Wall Street Zen raised shares of Hilltop from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Hilltop from $34.00 to $39.00 and gave the company a “market perform” rating in a report on Tuesday, February 3rd. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $37.50.

Hilltop Stock Down 3.4%

Shares of HTH stock opened at $36.68 on Thursday. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of 13.89 and a beta of 0.92. The company’s 50 day moving average is $36.81 and its 200 day moving average is $35.42. Hilltop has a 52-week low of $28.43 and a 52-week high of $40.41.

Hilltop (NYSE:HTH) last issued its quarterly earnings data on Thursday, April 23rd. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.10. The company had revenue of $300.51 million for the quarter, compared to analyst estimates of $304.87 million. Hilltop had a net margin of 10.13% and a return on equity of 7.29%. During the same period last year, the company posted $0.65 earnings per share. Analysts anticipate that Hilltop will post 2.04 EPS for the current fiscal year.

Hilltop Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Friday, May 8th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Friday, May 8th. Hilltop’s payout ratio is currently 30.30%.

Insiders Place Their Bets

In other Hilltop news, CEO Martin Bradley Winges sold 26,000 shares of Hilltop stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $38.46, for a total value of $999,960.00. Following the transaction, the chief executive officer directly owned 65,831 shares of the company’s stock, valued at approximately $2,531,860.26. The trade was a 28.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve B. Thompson sold 9,025 shares of Hilltop stock in a transaction on Friday, February 6th. The stock was sold at an average price of $39.84, for a total transaction of $359,556.00. Following the completion of the transaction, the chief executive officer directly owned 91,817 shares in the company, valued at $3,657,989.28. This represents a 8.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 294,796 shares of company stock valued at $11,225,619. 29.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hilltop

Institutional investors and hedge funds have recently bought and sold shares of the company. Strategic Wealth Advisors LLC purchased a new position in Hilltop in the fourth quarter worth $33,000. EverSource Wealth Advisors LLC grew its holdings in Hilltop by 584.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,075 shares of the financial services provider’s stock worth $33,000 after purchasing an additional 918 shares during the last quarter. Allworth Financial LP grew its holdings in Hilltop by 37.3% in the fourth quarter. Allworth Financial LP now owns 1,153 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 313 shares during the last quarter. Danske Bank A S purchased a new position in Hilltop in the third quarter worth $43,000. Finally, Smartleaf Asset Management LLC grew its holdings in Hilltop by 42.7% in the third quarter. Smartleaf Asset Management LLC now owns 1,334 shares of the financial services provider’s stock worth $45,000 after purchasing an additional 399 shares during the last quarter. 57.13% of the stock is owned by hedge funds and other institutional investors.

Key Hilltop News

Here are the key news stories impacting Hilltop this week:

• Positive Sentiment: Q1 EPS beat expectations — Hilltop reported $0.64 EPS vs. consensus ~$0.54, driven by higher net interest income; management also highlighted improved provision levels. Read More.
• Positive Sentiment: Net interest income rose and credit‑loss provisions plunged, which supported profitability despite headwinds in other areas. This operational improvement is a near‑term positive for margins and earnings. Read More.
• Positive Sentiment: Dividend and capital returns — Board declared a $0.20 quarterly dividend (ex‑div May 8) and the company signaled progress on its capital‑return plan, supporting yield and shareholder returns. Read More.
• Neutral Sentiment: Earnings call and management commentary are available — review the Q1 transcript for color on deposit trends, margin outlook and capital actions (useful for gauging management confidence but no new headline change). Read More.
• Neutral Sentiment: Company slide deck and press release provide detailed metrics (LOAN mix, NPA trends, segment results) for investor modeling. Read More.
• Negative Sentiment: Revenue and non‑interest income missed expectations — consolidated revenue was ~$300.5M vs. consensus ~$305M, and lower non‑interest income trimmed upside versus the EPS beat. Read More.
• Negative Sentiment: Deposit decline and portfolio risks — deposits fell ~3.2% YoY; management/analysts flagged high CRE exposure (about 43% of loans) and rising nonperforming asset ratios, increasing downside risk if local Texas commercial real estate weakens. Read More.

About Hilltop

Hilltop Holdings, Inc (NYSE: HTH) is a Dallas, Texas–based financial holding company offering commercial banking, mortgage lending and capital markets services through its three primary subsidiaries: PlainsCapital Corporation, PrimeLending and HilltopSecurities. PlainsCapital provides deposit, lending and treasury management solutions to small and mid-sized businesses, professionals and individuals. PrimeLending specializes in home purchase and refinance loans, serving retail, wholesale and correspondent channels.