Last Updated: 16 Sep 2024
Executive Summary
Heartland Financial USA Inc (HTLF) is a multi-bank holding company with a market capitalization of $2.43 billion. The company's stock is currently trading at $56.59, slightly below its 52-week high of $56.75. HTLF has a strong financial position with a profit margin of 12.7% and a return on equity of 3.56%. The company's earnings and revenue have grown in recent years, and analysts expect this growth to continue in the future.
Company Overview
Heartland Financial USA Inc is a multi-bank holding company that provides commercial, small business, and consumer banking products and services to individuals and businesses in the United States. The company is headquartered in Dubuque, Iowa, and has approximately 1,400 employees. HTLF's primary banking subsidiary is Heartland Bank, which has over 100 branches in Iowa, Illinois, Wisconsin, and Minnesota.
Fundamental Analysis
HTLF's financial performance has been strong in recent years. The company's revenue has grown from $465.6 million in 2019 to $546.0 million in 2023. Net income has also increased from $50.7 million in 2019 to $69.1 million in 2023. HTLF's profit margin has remained relatively stable at around 12.7%.
The company's return on equity (ROE) has also improved in recent years, from 3.06% in 2019 to 3.56% in 2023. This indicates that HTLF is using its assets efficiently to generate profits.
Technical Analysis
HTLF's stock price has been trending higher in recent months. The stock broke above its 50-day moving average in early July and has since continued to move higher. The stock is currently trading above its 200-day moving average, which is a sign of a bullish trend.
The relative strength index (RSI) is a technical indicator that measures the momentum of a stock's price. The RSI is currently at 65.76, which is in the overbought territory. This indicates that the stock may be due for a pullback in the short term.
Short Term Outlook
The short-term outlook for HTLF is positive. The stock is trading above its key moving averages and the RSI is in the overbought territory. This indicates that the stock is likely to continue to move higher in the short term. However, investors should be aware that the stock may be due for a pullback in the short term.
Long Term Outlook
The long-term outlook for HTLF is also positive. The company has a strong financial position and is well-positioned to benefit from the growing economy. Analysts expect HTLF's earnings and revenue to continue to grow in the future. The company's stock price is likely to follow suit.
Analyst Recommendations
Analysts are generally positive on HTLF. The consensus rating on the stock is "Buy." The average price target for the stock is $61.75, which represents a potential upside of 9.1% from the current price.
Conclusion
Heartland Financial USA Inc is a well-run company with a strong financial position. The company's stock is currently trading at a reasonable valuation and is expected to continue to grow in the future. Investors who are looking for a long-term investment should consider adding HTLF to their portfolio.
