Algebris UK Ltd. Invests $10.78 Million in Heritage Financial Corporation $HFWA

Algebris UK Ltd. acquired a new stake in shares of Heritage Financial Corporation (NASDAQ:HFWA) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 445,760 shares of the financial services provider’s stock, valued at approximately $10,775,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Jennison Associates LLC boosted its stake in Heritage Financial by 8.2% in the 2nd quarter. Jennison Associates LLC now owns 2,977,315 shares of the financial services provider’s stock worth $70,979,000 after purchasing an additional 225,201 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of Heritage Financial by 437.3% in the first quarter. Jane Street Group LLC now owns 107,482 shares of the financial services provider’s stock worth $2,615,000 after buying an additional 87,479 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Heritage Financial by 13.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 504,509 shares of the financial services provider’s stock worth $12,027,000 after buying an additional 59,633 shares during the period. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Heritage Financial during the second quarter valued at $750,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH increased its position in shares of Heritage Financial by 112.5% in the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 58,043 shares of the financial services provider’s stock valued at $1,404,000 after acquiring an additional 30,725 shares during the period. Hedge funds and other institutional investors own 78.30% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Keefe, Bruyette & Woods raised their target price on Heritage Financial from $26.00 to $28.00 and gave the stock a “market perform” rating in a research note on Monday, September 29th. Zacks Research lowered Heritage Financial from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 25th. DA Davidson raised their target price on Heritage Financial from $29.00 to $32.00 and gave the company a “buy” rating in a research report on Friday. Wall Street Zen raised shares of Heritage Financial from a “sell” rating to a “hold” rating in a research note on Saturday, November 15th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Heritage Financial in a report on Thursday. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Heritage Financial presently has an average rating of “Hold” and a consensus price target of $30.33.

Heritage Financial Trading Down 5.5%

Shares of Heritage Financial stock opened at $26.58 on Monday. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.83 and a quick ratio of 0.84. The stock’s 50 day simple moving average is $24.42 and its 200-day simple moving average is $23.95. The stock has a market cap of $902.66 million, a P/E ratio of 13.56 and a beta of 0.52. Heritage Financial Corporation has a 1-year low of $19.84 and a 1-year high of $28.35.

Heritage Financial (NASDAQ:HFWA) last announced its quarterly earnings data on Thursday, January 22nd. The financial services provider reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.57 by $0.09. The firm had revenue of $66.35 million for the quarter, compared to the consensus estimate of $65.95 million. Heritage Financial had a return on equity of 8.61% and a net margin of 20.10%. Analysts predict that Heritage Financial Corporation will post 2.09 EPS for the current fiscal year.

Heritage Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 11th. Investors of record on Wednesday, January 28th will be issued a $0.24 dividend. The ex-dividend date of this dividend is Wednesday, January 28th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 3.6%. Heritage Financial’s dividend payout ratio is currently 48.98%.

Heritage Financial News Roundup

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

• Positive Sentiment: Q4 results topped expectations: Heritage reported $0.66 EPS (vs. $0.57 consensus) and revenue modestly beat, with improved ROA and net margin — a fundamental beat that supports earnings momentum. PR Newswire: Q4 Results
• Positive Sentiment: Analyst upgrade: DA Davidson raised its price target to $32 and assigned a “buy” rating, implying ~20% upside from current levels — a bullish signal from a large regional-bank analyst. The Fly: Price Target Raised
• Positive Sentiment: Merger synergy potential: Management outlined near-4% margin improvement potential from integrating Olympic, which, if realized, could materially lift profitability over time. Seeking Alpha: Margin Improvement
• Neutral Sentiment: Full disclosure available: The earnings call transcript, slide deck and detailed Q4 presentation are published for deeper review of guidance, loan/deposit trends and expense assumptions. Use these to vet the merger and margin assumptions. Seeking Alpha: Earnings Transcript
• Neutral Sentiment: Market coverage: Multiple outlets highlight the “strong quarter and acquisition prep” narrative; useful for context but not new company-specific data. TipRanks: Strong Quarter & Acquisition
• Negative Sentiment: Shareholder-approved stock issuance for the merger raises near-term dilution concerns — investors may be weighing dilution vs. long-term synergies, pressuring the share price. TipRanks: Shareholder Approval
• Negative Sentiment: Market reaction and volume: Despite beats and an analyst upgrade, shares are trading lower on elevated volume — likely a mix of profit-taking after recent gains, merger/dilution uncertainty, and short-term positioning. Benzinga: Market Note

Insider Activity

In other news, President Bryan Mcdonald acquired 19,106 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was purchased at an average cost of $22.32 per share, for a total transaction of $426,445.92. Following the completion of the transaction, the president owned 31,363 shares in the company, valued at approximately $700,022.16. This trade represents a 155.88% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.90% of the company’s stock.

Heritage Financial Company Profile

Heritage Financial Corporation (NASDAQ:HFWA) is a bank holding company headquartered in Spokane, Washington. Through its primary subsidiary, Heritage Bank, the company provides a comprehensive range of banking and financial services to both individual and commercial clients. Heritage Bank’s offerings encompass deposit products, lending solutions, treasury and cash management services, mortgage banking, and wealth management, positioning the organization as a full-service community bank.

The company’s lending portfolio includes commercial real estate loans, agricultural loans, small business administration (SBA) loans, construction and development financing, and a variety of consumer mortgage products.