Heritage Financial (NASDAQ:HFWA) Stock Rating Raised to “Hold” at Zacks Research

Zacks Research upgraded shares of Heritage Financial (NASDAQ:HFWA) from a strong sell rating to a hold rating in a research report sent to investors on Thursday,Zacks reports.

A number of other brokerages have also recently weighed in on HFWA. Capital One Financial set a $33.00 price objective on shares of Heritage Financial in a report on Tuesday, September 22nd. Stephens increased their target price on shares of Heritage Financial from $30.00 to $32.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 28th. Raymond James Financial reissued a “market perform” rating on shares of Heritage Financial in a research report on Thursday. DA Davidson boosted their price target on shares of Heritage Financial from $32.00 to $34.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Finally, Brean Capital raised Heritage Financial from a “neutral” rating to a “buy” rating and set a $33.00 price objective on the stock in a research report on Tuesday, September 22nd. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Heritage Financial currently has an average rating of “Moderate Buy” and a consensus target price of $32.67.

Heritage Financial Stock Performance

NASDAQ HFWA opened at $29.15 on Thursday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.83 and a quick ratio of 0.83. The company has a market cap of $1.19 billion, a P/E ratio of 14.50 and a beta of 0.50. The stock has a 50-day moving average of $28.29 and a two-hundred day moving average of $28.35. Heritage Financial has a 1-year low of $21.32 and a 1-year high of $31.25.

Heritage Financial (NASDAQ:HFWA) last issued its quarterly earnings results on Thursday, October 22nd. The financial services provider reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.05. Heritage Financial had a net margin of 19.24% and a return on equity of 8.70%. The business had revenue of $86.51 million for the quarter, compared to analysts’ expectations of $86.11 million. As a group, analysts anticipate that Heritage Financial will post 2.34 EPS for the current year.

Heritage Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Stockholders of record on Wednesday, November 4th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Wednesday, November 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.4%. Heritage Financial’s payout ratio is currently 47.62%.

Insider Buying and Selling at Heritage Financial

In related news, Director Jeffrey S. Lyon sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $30.00, for a total value of $300,000.00. Following the sale, the director owned 40,719 shares of the company’s stock, valued at $1,221,570. This trade represents a 19.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Frederick B. Rivera sold 1,300 shares of Heritage Financial stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $28.57, for a total transaction of $37,141.00. Following the completion of the transaction, the director owned 5,890 shares of the company’s stock, valued at $168,277.30. This represents a 18.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 22,004 shares of company stock valued at $657,200. 1.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Heritage Financial

A number of large investors have recently modified their holdings of HFWA. BlackRock Inc. acquired a new position in shares of Heritage Financial during the 2nd quarter worth about $172,125,000. Jennison Associates LLC increased its holdings in shares of Heritage Financial by 3.4% in the 1st quarter. Jennison Associates LLC now owns 3,213,473 shares of the financial services provider’s stock valued at $83,550,000 after acquiring an additional 106,308 shares during the last quarter. Basswood Capital Management L.L.C. acquired a new stake in shares of Heritage Financial during the 2nd quarter worth about $20,408,000. Algebris UK Ltd. acquired a new stake in shares of Heritage Financial during the 2nd quarter worth about $13,860,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Heritage Financial during the 2nd quarter worth about $11,817,000. 78.30% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Heritage Financial

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

• Positive Sentiment: Heritage Financial reported third-quarter revenue of $86.5 million, slightly above the $86.1 million consensus estimate. Adjusted EPS was $0.55, ahead of the $0.50 estimate cited by several analysts, while net income rose to $18.7 million from $17.5 million in the second quarter. Heritage Financial Announces Third Quarter 2026 Results
• Positive Sentiment: The board authorized a repurchase of up to 2 million shares, representing approximately 5% of issued shares. The program could support earnings per share and signal that management views the stock as attractively valued. Heritage Financial Announces Equity Buyback
• Positive Sentiment: Heritage Financial declared a regular $0.25-per-share dividend, or $1.00 annualized, implying a yield of roughly 3.5% based on the supplied trading information. The payout adds to the stock’s shareholder-return appeal. Heritage Financial Dividend Announcement
• Neutral Sentiment: Management expects fourth-quarter noninterest expense of $55 million to $56 million following the Kitsap systems conversion. The guidance provides visibility but indicates elevated implementation-related costs in the near term. Heritage Financial Q4 Expense Outlook
• Negative Sentiment: Results were mixed depending on the earnings measure: GAAP diluted EPS was $0.46, while adjusted EPS declined from $0.57 in the second quarter and was below the $0.56 reported a year earlier. One estimate also placed the quarterly EPS shortfall at $0.02, which may limit the positive reaction. Heritage Financial Q3 Earnings Estimate Report

About Heritage Financial

Heritage Financial Corporation (NASDAQ: HFWA) is a bank holding company headquartered in Olympia, Washington. The company operates primarily through Heritage Bank, a community-focused financial institution serving businesses, individuals and organizations in Washington and Oregon.

Heritage Bank provides commercial and residential real estate lending, business and consumer loans, deposit accounts, cash-management and treasury services, online and mobile banking, and other traditional banking products.