Heritage Commerce (NASDAQ:HTBK) Announces Quarterly Earnings Results

Heritage Commerce (NASDAQ:HTBK) announced its quarterly earnings results on Thursday. The financial services provider reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.05, FiscalAI reports. The business had revenue of $53.62 million during the quarter, compared to analysts’ expectations of $50.78 million. Heritage Commerce had a return on equity of 8.10% and a net margin of 17.77%.

Heritage Commerce Trading Down 3.7%

NASDAQ HTBK opened at $12.88 on Friday. The company has a market cap of $788.98 million, a P/E ratio of 16.51 and a beta of 0.80. Heritage Commerce has a 12 month low of $8.09 and a 12 month high of $13.64. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.75 and a quick ratio of 0.75. The company has a 50-day moving average of $11.92 and a 200-day moving average of $10.72.

Heritage Commerce Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Thursday, February 5th will be issued a $0.13 dividend. The ex-dividend date is Thursday, February 5th. This represents a $0.52 annualized dividend and a yield of 4.0%. Heritage Commerce’s payout ratio is 66.67%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on HTBK shares. Piper Sandler raised their target price on shares of Heritage Commerce from $11.00 to $12.00 and gave the company an “overweight” rating in a report on Monday, October 27th. Raymond James Financial lowered Heritage Commerce from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 7th. Wall Street Zen lowered Heritage Commerce from a “hold” rating to a “sell” rating in a research note on Saturday, December 20th. Janney Montgomery Scott downgraded shares of Heritage Commerce from a “buy” rating to a “neutral” rating and boosted their target price for the company from $12.00 to $14.00 in a research note on Monday, December 22nd. Finally, Zacks Research lowered shares of Heritage Commerce from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Heritage Commerce has an average rating of “Hold” and an average target price of $12.25.

Key Headlines Impacting Heritage Commerce

Here are the key news stories impacting Heritage Commerce this week:

• Positive Sentiment: Q4 beat — Heritage reported adjusted non‑GAAP EPS of $0.28 vs. consensus ~$0.23 and revenue of about $53.6M, driven by balance-sheet growth and NIM expansion; the beat is the primary fundamental upside driver. Read More.
• Positive Sentiment: Dividend maintained/increased yield appeal — the board declared a $0.13 quarterly cash dividend (payable Feb 19; record Feb 5), implying a ~3.9% yield and continuation of a long quarterly payout track record. Read More.
• Neutral Sentiment: Company-provided results/slide deck and full‑year commentary — management highlighted adjusted Q4 earnings up ~62% YoY and released a slide deck summarizing drivers; useful for judging sustainability but not new guidance in headlines. Read More.
• Negative Sentiment: Liquidity/efficiency and valuation caution — the company’s quick and current ratios are ~0.75 and ROE (~7.2%) is middling; trading volume was slightly below average and some investors likely took profits after a run, which can pressure the share price despite the beat.

Hedge Funds Weigh In On Heritage Commerce

A number of large investors have recently bought and sold shares of the stock. Boston Partners raised its position in shares of Heritage Commerce by 52.1% in the 3rd quarter. Boston Partners now owns 1,676,777 shares of the financial services provider’s stock worth $16,636,000 after buying an additional 574,070 shares during the period. Vanguard Group Inc. raised its holdings in shares of Heritage Commerce by 11.0% in the 3rd quarter. Vanguard Group Inc. now owns 3,946,682 shares of the financial services provider’s stock worth $39,191,000 after purchasing an additional 390,978 shares during the period. Jacobs Levy Equity Management Inc. raised its holdings in shares of Heritage Commerce by 979.3% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 360,543 shares of the financial services provider’s stock worth $3,580,000 after purchasing an additional 327,138 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Heritage Commerce by 57.5% in the 3rd quarter. Alliancebernstein L.P. now owns 678,246 shares of the financial services provider’s stock valued at $6,735,000 after purchasing an additional 247,500 shares in the last quarter. Finally, Two Sigma Investments LP grew its holdings in shares of Heritage Commerce by 53.6% during the 3rd quarter. Two Sigma Investments LP now owns 626,061 shares of the financial services provider’s stock worth $6,217,000 after purchasing an additional 218,557 shares during the period. Hedge funds and other institutional investors own 75.55% of the company’s stock.

Heritage Commerce Company Profile

Heritage Commerce Corporation, headquartered in Farmington Hills, Michigan, is the bank holding company for Heritage Bank, N.A., a community-oriented financial institution. Traded on NASDAQ under the symbol HTBK, the company focuses on delivering tailored banking services to businesses, professionals and individuals throughout Southeastern Michigan.

Heritage Bank, N.A. offers a comprehensive portfolio of deposit and lending products designed to meet the needs of commercial and consumer clients.