Zacks Investment Research Downgrades Heritage Commerce (NASDAQ:HTBK) to Sell

Zacks Investment Research downgraded shares of Heritage Commerce (NASDAQ:HTBK) from a hold rating to a sell rating in a research note issued to investors on Wednesday, Zacks.com reports.

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. “

HTBK has been the topic of a number of other reports. Piper Sandler lowered their price target on Heritage Commerce from $9.00 to $8.00 and set an overweight rating on the stock in a research report on Thursday, October 1st. BidaskClub lowered Heritage Commerce from a buy rating to a hold rating in a research note on Wednesday, December 23rd. DA Davidson lowered Heritage Commerce from a buy rating to a neutral rating and increased their target price for the company from $9.00 to $9.50 in a research note on Thursday, December 17th. ValuEngine upgraded Heritage Commerce from a sell rating to a hold rating in a report on Tuesday, December 1st. Finally, TheStreet upgraded Heritage Commerce from a c+ rating to a b- rating in a report on Wednesday, December 2nd. One research analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus target price of $9.13.

Shares of NASDAQ HTBK opened at $8.87 on Wednesday. The business has a fifty day simple moving average of $8.77 and a 200 day simple moving average of $7.49. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $531.45 million, a price-to-earnings ratio of 17.74 and a beta of 1.22. Heritage Commerce has a one year low of $6.04 and a one year high of $12.86.

Heritage Commerce (NASDAQ:HTBK) last issued its earnings results on Thursday, October 22nd. The financial services provider reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.02. Heritage Commerce had a return on equity of 7.17% and a net margin of 17.58%. The business had revenue of $36.76 million during the quarter, compared to analyst estimates of $38.55 million. On average, research analysts anticipate that Heritage Commerce will post 0.61 earnings per share for the current fiscal year.

In related news, EVP Michael Eugene Benito sold 4,500 shares of the business’s stock in a transaction on Monday, December 14th. The stock was sold at an average price of $9.24, for a total transaction of $41,580.00. Following the sale, the executive vice president now owns 65,537 shares in the company, valued at approximately $605,561.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jason Philip Dinapoli acquired 10,000 shares of Heritage Commerce stock in a transaction that occurred on Thursday, December 10th. The shares were purchased at an average price of $8.94 per share, for a total transaction of $89,400.00. Following the transaction, the director now directly owns 25,347 shares in the company, valued at $226,602.18. The disclosure for this purchase can be found here. Company insiders own 4.30% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. Bank of America Corp DE raised its stake in shares of Heritage Commerce by 120.5% in the second quarter. Bank of America Corp DE now owns 77,460 shares of the financial services provider’s stock worth $581,000 after purchasing an additional 42,327 shares during the last quarter. Vanguard Group Inc. grew its holdings in Heritage Commerce by 2.3% during the second quarter. Vanguard Group Inc. now owns 2,921,982 shares of the financial services provider’s stock valued at $21,929,000 after purchasing an additional 66,570 shares during the period. Morgan Stanley grew its holdings in Heritage Commerce by 269.6% during the first quarter. Morgan Stanley now owns 596,472 shares of the financial services provider’s stock valued at $4,575,000 after purchasing an additional 435,102 shares during the period. Goldman Sachs Group Inc. grew its holdings in Heritage Commerce by 15.5% during the second quarter. Goldman Sachs Group Inc. now owns 126,412 shares of the financial services provider’s stock valued at $949,000 after purchasing an additional 16,929 shares during the period. Finally, Man Group plc grew its holdings in Heritage Commerce by 31.4% during the second quarter. Man Group plc now owns 204,211 shares of the financial services provider’s stock valued at $1,533,000 after purchasing an additional 48,799 shares during the period. Institutional investors and hedge funds own 60.06% 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.

Further Reading: Strangles

Get a free copy of the Zacks research report on Heritage Commerce (HTBK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Heritage Commerce Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Heritage Commerce and related companies with MarketBeat.com's FREE daily email newsletter.