Last Updated: 16 Sep 2024
Executive Summary
Heritage Financial Corporation (HFWA) is a banking holding company headquartered in Olympia, Washington. The company provides financial services to small and medium-sized businesses and individuals in the United States. HFWA is a publicly traded company with a market capitalization of $749.26 million.
The company's stock price has been relatively stable over the past year, trading between $14.76 and $23.56. HFWA is currently trading at $21.72, which is slightly below its 52-week high.
Company Overview
HFWA was founded in 1927 and is one of the largest banks in Washington state. The company has over $4 billion in assets and operates over 50 branches throughout the state. HFWA offers a wide range of financial services, including checking and savings accounts, loans, and investment products.
The company's target market is small and medium-sized businesses and individuals. HFWA focuses on providing personalized service and building long-term relationships with its customers.
Fundamental Analysis
HFWA's financial performance has been solid in recent years. The company has reported positive earnings growth in each of the past five years. In 2023, HFWA reported net income of $42.3 million, up from $39.1 million in 2022.
The company's revenue has also grown in recent years. In 2023, HFWA reported revenue of $214.4 million, up from $210.1 million in 2022.
HFWA's profitability metrics are also strong. The company's net profit margin was 20.7% in 2023, and its return on equity was 5.31%.
Technical Analysis
HFWA's stock price has been trending sideways over the past few months. The stock is currently trading below its 50-day and 200-day moving averages.
The stock's relative strength index (RSI) is currently at 45.9, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
HFWA's stock price is likely to remain range-bound in the short term. The stock is currently trading below its key moving averages, and the RSI is neutral.
However, HFWA's fundamentals are strong, and the company is well-positioned to benefit from rising interest rates.
Long Term Outlook
HFWA's long-term outlook is positive. The company has a strong track record of financial performance, and it is well-positioned to benefit from the growing economy in Washington state.
The company's stock price is likely to appreciate over the long term as the company continues to grow its earnings and revenue.
Analyst Recommendations
Analysts have a mixed view on HFWA. Two analysts have a "buy" rating on the stock, while four analysts have a "hold" rating.
The average analyst target price for HFWA is $24.20. This target price implies a potential upside of 11.4% from the current price.
