Heritage Financial Corp. Upgraded by DA Davidson to “Buy” (HFWA)
Heritage Financial Corp. (NASDAQ:HFWA) was upgraded by equities researchers at DA Davidson from a “neutral” rating to a “buy” rating in a research report issued on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $19.00 price objective on the stock, up from their previous price objective of $16.50. DA Davidson’s price target would indicate a potential upside of 19.57% from the stock’s previous close.
The analysts wrote, “HFWA announced a merger agreement with Washington Banking Co. (WBCO–NEUTRAL–$14.25) for $265.1 million. WBCO shareholders will receive 0.89 shares of HFWA in addition to $2.75 in cash for each share of WBCO. The approximate deal value is $265.1 million, or $16.89 per share, and is expected to close in the first half of 2014. The deal value represents 1.49x WBCO’s 9/30 TBV. The combination will create a $3.3 billion asset bank with a pro forma deposit market share rank of #3 among WA-based banks. We view Heritage and Washington Banking Co. as similarly operated institutions that should exploit the SW Washington/NW Oregon footprint of HFWA along with WBCO’s NW Washington presence. Separately, the banks face daunting regulatory and leverage challenges; together, these threats are minimized and a nimble, yet substantial franchise should thrive.”
Shares of Heritage Financial Corp. (NASDAQ:HFWA) traded up 3.52% on Thursday, hitting $16.45. The stock had a trading volume of 82,642 shares. Heritage Financial Corp. has a 52-week low of $13.25 and a 52-week high of $16.53. The stock has a 50-day moving average of $15.65 and a 200-day moving average of $14.65. The company has a market cap of $246.8 million and a P/E ratio of 20.99.
Heritage Financial Corp. (NASDAQ:HFWA) last released its earnings data on Thursday, October 24th. The company reported $0.20 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.20. On average, analysts predict that Heritage Financial Corp. will post $0.77 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, November 15th. Shareholders of record on Tuesday, November 5th will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 2.01%.
Heritage Financial Corporation is a bank holding company. The Company is engaged in the business of planning, directing, and coordinating the business activities of its wholly owned subsidiaries: Heritage Bank and Central Valley Bank (NASDAQ:HFWA).
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.