Are Heritage Commerce Corp (NASDAQ:HTBK)’s Fundamentals Enough to Outperform

Heritage Commerce Corp (NASDAQ:HTBK) previous close was $7.15 while the outstanding shares total 62.03M. The firm has a beta of 1.16, a 12-month trailing P/E ratio of 10.50, and a growth ratio of 1.50. HTBK’s shares traded lower over the last trading session, losing -5.73% on 06/26/20. The shares fell to a low of $6.65 before closing at $6.74. Intraday shares traded counted 0.97 million, which was -304.73% lower than its 30-day average trading volume of 238.46K. The stock’s Relative Strength Index (RSI) is 33.30, with weekly volatility at 4.36% and ATR at 0.46. The HTBK stock’s 52-week price range has touched low of $6.04 and a $13.14 high.

Investors have identified the Banks – Regional company Heritage Commerce Corp as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $427.11 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Heritage Commerce Corp (HTBK) Fundamentals that are to be considered.

HTBK were able to record 8.72 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -13.97 million. In cash movements, the company had a total of 9.72 million as operating cash flow.

Potential earnings growth for Heritage Commerce Corp (HTBK)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Heritage Commerce Corp recorded a total of 40.94 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.3% coming in sequential stages and their sales for the third quarter reducing by -3.73%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.36 million trying to sell their products during the last quarter, with the result yielding a gross income of 38.58 million. This allows shareholders to hold on to 62.03M with the revenue now reading 0.03 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.20 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.07 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on HTBK sounds very interesting.

Is the stock of HTBK attractive?

In related news, President and CEO, Wilton Keith sold 2,730 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 8.71, for a total value of 23,788. As the sale deal closes, the President and CEO, Wilton Keith now sold 3,713 shares of the company’s stock, valued at 31,041. Also, Director, DiNapoli Jason Philip bought 5,094 shares of the company’s stock in a deal that was recorded on Mar 10. The shares were price at an average price of 8.49 per share, with a total market value of 43,241. Following this completion of acquisition, the Director, Conner Jack W now holds 1,000 shares of the company’s stock, valued at 8,229. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.70%.

4 out of 5 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Heritage Commerce Corp. 0 analysts has assigned a Sell rating on the HTBK stock. The 12-month mean consensus price target for the company’s shares has been set at $9.60.