Heartland Financial USA Inc (HTLF, Financial), a prominent player in the banking industry, has recently experienced a significant uptick in its stock price. With a current market capitalization of $1.81 billion, the company's shares are trading at $42.35. This price point marks a substantial 19.99% gain over the past week and a 10.67% increase over the last three months. Such movements in the stock market often pique the interest of investors seeking to understand the underlying factors and potential implications of these changes.
Understanding HTLF's Current Valuation
The recent price surge brings Heartland Financial's valuation into focus. The GF Value, a proprietary metric by GuruFocus, is currently set at $41.34, suggesting that the stock is Fairly Valued. This is a shift from three months ago when the GF Value stood at $48.43, indicating that the stock was then considered Modestly Undervalued. The GF Value is a critical tool for investors, as it provides an estimate of a stock's intrinsic value, factoring in historical multiples, past performance, and future business projections.
Company Profile: Heartland Financial USA Inc
Heartland Financial USA Inc is a multi-bank holding company that delivers a diverse array of banking services to various sectors, including commercial enterprises, small businesses, public sector entities, non-profits, and individual consumers. The company's service offerings span from commercial banking and agricultural loans to wealth management and retirement plan services. Heartland Financial prides itself on its accessibility, providing services through traditional means as well as online, mobile, and remote banking platforms.
Assessing Profitability in the Banking Sector
When evaluating Heartland Financial's profitability, the company holds a Profitability Rank of 5/10, placing it at a moderate standing within the industry. Its Return on Equity (ROE) is 4.35%, which is commendable as it outperforms 20.14% of 1,460 companies in the banking sector. Similarly, the company's Return on Assets (ROA) stands at 0.40%, surpassing 21.72% of its industry peers. Notably, Heartland Financial has maintained profitability for the past 10 years, a feat better than 99.93% of 1,464 companies in the sector, showcasing its consistent performance.
Growth Trajectory and Industry Comparison
Despite its solid profitability, Heartland Financial's growth metrics present a mixed picture. The company's Growth Rank is 2/10, indicating challenges in this area. Over the past three years, the revenue growth rate per share has declined by 5.80%, which, while better than 9.75% of 1,405 companies, signals a contraction. The five-year revenue growth rate per share also shows a decrease of 1.40%. However, there is a silver lining with the 3-Year EPS without NRI Growth Rate at 6.10% and the 5-Year EPS without NRI Growth Rate at 5.60%, both of which are better than the industry median.
Key Stakeholders in Heartland Financial
Significant holders of Heartland Financial stock include HOTCHKIS & WILEY, holding 86,310 shares, Jefferies Group (Trades, Portfolio) with 12,500 shares, and Caxton Associates (Trades, Portfolio) owning 12,153 shares. These positions reflect the confidence and investment interest from notable financial institutions, which can influence the stock's market perception and stability.
Competitive Landscape
In comparison to its competitors, Heartland Financial stands strong with a market cap of $1.81 billion. Its closest competitors, Lakeland Financial Corp (LKFN, Financial) with a market cap of $1.52 billion, City Holding Co (CHCO, Financial) at $1.54 billion, and Banner Corp (BANR, Financial) also at $1.54 billion, offer a context for Heartland Financial's market position and performance within the banking industry.
Conclusive Insights on Heartland Financial's Market Position
In conclusion, Heartland Financial USA Inc's recent stock performance and valuation indicate a company that is currently seen as fairly valued by market standards. Its profitability remains solid, with a decade-long track record of success. However, growth remains an area for potential improvement, as indicated by its lower Growth Rank. The positions held by significant stakeholders suggest a level of confidence in the company's future, while its standing among competitors shows it as a formidable entity in the banking sector. Investors will continue to watch Heartland Financial's performance closely, as its recent stock price movements have certainly made waves in the financial community.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
