Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Heritage Commerce (NASDAQ:HTBK) in the last three months.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 4 | 0 | 0 | 0 |
| Last 30D | 0 | 2 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $10.62, along with a high estimate of $11.00 and a low estimate of $9.50. This current average has increased by 1.14% from the previous average price target of $10.50.
Decoding Analyst Ratings: A Detailed Look
The analysis of recent analyst actions sheds light on the perception of Heritage Commerce by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Andrew Liesch | Piper Sandler | Raises | Overweight | $11.00 | $10.00 |
| Wood Lay | Keefe, Bruyette & Woods | Lowers | Outperform | $11.00 | $12.00 |
| David Feaster | Raymond James | Raises | Outperform | $11.00 | $9.50 |
| David Feaster | Raymond James | Lowers | Outperform | $9.50 | $10.50 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Heritage Commerce. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Heritage Commerce compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
To gain a panoramic view of Heritage Commerce's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
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Unveiling the Story Behind Heritage Commerce
Heritage Commerce Corp operates as a bank holding company. The company, through its subsidiary, offers commercial banking services to small and medium-sized businesses and their owners, managers, and employees. It operates through two segments, namely Banking and Factoring. The bank generates its revenue from the Banking segment.
Heritage Commerce's Economic Impact: An Analysis
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Challenges: Heritage Commerce's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -6.9%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Heritage Commerce's net margin excels beyond industry benchmarks, reaching 33.67%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Heritage Commerce's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.4%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Heritage Commerce's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.29% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Heritage Commerce's debt-to-equity ratio is below the industry average at 0.06, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.