Heartland Financial USA Inc (HTLF, Financial) has recently demonstrated a notable performance in the stock market, with a significant 32.35% increase in its stock price over the past three months. As of the latest data, the company's market capitalization stands at $1.87 billion, with a current stock price of $43.67. This recent surge contrasts with a modest 1.09% gain over the past week, indicating a more substantial medium-term upward trend. Currently, the GF Value, which assesses the fair market value of a stock, suggests that HTLF is fairly valued at $39.83, compared to a slightly lower valuation three months ago at $37.57, when it was considered modestly undervalued.
Overview of Heartland Financial USA Inc
Heartland Financial USA Inc operates within the banking industry, providing a diverse range of services including commercial, agricultural, and small business banking, as well as wealth management and retirement services. The company's strategy focuses on delivering both traditional and innovative banking solutions through various channels such as online, mobile, and remote banking services. This comprehensive approach helps cater to a broad customer base, ranging from businesses and public sector entities to individual consumers.
Assessing Profitability
Heartland Financial's Profitability Rank currently stands at 4 out of 10. The company's Return on Equity (ROE) is 4.18%, which is better than 18.87% of 1,473 companies in the same sector. Additionally, its Return on Assets (ROA) of 0.40% also ranks higher than 21.57% of 1,474 companies. Impressively, Heartland Financial has maintained profitability for the past 10 years, a feat better than 99.93% of 1,477 companies, showcasing its consistent performance and financial stability.
Evaluating Growth Metrics
The company's Growth Rank is relatively low at 2 out of 10. Over the past three years, Heartland Financial has experienced a revenue decline of 5.80% per share, which, despite being a negative figure, still ranks better than 8.96% of 1,428 companies. However, its 3-Year EPS without NRI Growth Rate shows a more positive aspect, with a growth of 6.10%, outperforming 34.04% of 1,322 companies. This mixed growth performance highlights the challenges and opportunities the company faces in its operational sectors.
Significant Shareholders
Among the notable shareholders, HOTCHKIS & WILEY leads with 153,130 shares, representing 0.36% of the company's stock. Following closely are prominent investors like Jim Simons and Caxton Associates (Trades, Portfolio), holding 22,700 and 12,153 shares respectively, which underscores the confidence these seasoned investors have in Heartland Financial's market position and future prospects.
Competitive Landscape
Heartland Financial operates in a competitive sector, closely contending with peers such as Merchants Bancorp (MBIN, Financial) with a market cap of $1.85 billion, Independent Bank Group Inc (IBTX, Financial) at $1.83 billion, and Trustmark Corp (TRMK, Financial) valued at $1.77 billion. These comparisons highlight a tightly contested market space where Heartland Financial holds a slight edge in market capitalization, potentially offering it a competitive advantage in terms of scale and market presence.
Conclusion
In conclusion, Heartland Financial USA Inc exhibits a robust market position with a recent impressive stock price performance. Despite facing some growth challenges, the company benefits from strong profitability and consistent financial health over the years. The current valuation suggests that the stock is fairly priced, reflecting its market potential and stability. Investors should consider both the competitive landscape and the company's financial metrics when evaluating its future prospects in the dynamic banking industry.
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.
