Heritage Financial (NASDAQ:HFWA) Stock Price Expected to Rise, DA Davidson Analyst Says

Heritage Financial (NASDAQ:HFWA) had its price target raised by DA Davidson from $29.00 to $32.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the financial services provider’s stock. DA Davidson’s target price would suggest a potential upside of 16.01% from the company’s current price.

Other equities analysts have also recently issued reports about the stock. Wall Street Zen upgraded shares of Heritage Financial from a “sell” rating to a “hold” rating in a research report on Saturday, November 15th. Weiss Ratings reiterated a “hold (c)” rating on shares of Heritage Financial in a report on Wednesday, October 8th. Zacks Research downgraded Heritage Financial from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 25th. Finally, Keefe, Bruyette & Woods lifted their target price on Heritage Financial from $26.00 to $28.00 and gave the company a “market perform” rating in a research note on Monday, September 29th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $30.33.

Heritage Financial Trading Down 2.0%

NASDAQ HFWA traded down $0.56 on Friday, hitting $27.59. 91,696 shares of the company were exchanged, compared to its average volume of 234,578. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.84 and a quick ratio of 0.84. Heritage Financial has a twelve month low of $19.84 and a twelve month high of $28.35. The firm has a market capitalization of $936.79 million, a P/E ratio of 16.68 and a beta of 0.52. The company’s 50 day moving average price is $24.33 and its 200-day moving average price is $23.97.

Heritage Financial (NASDAQ:HFWA) last released its earnings results on Thursday, January 22nd. The financial services provider reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.09. Heritage Financial had a net margin of 17.27% and a return on equity of 8.21%. The business had revenue of $66.35 million for the quarter, compared to the consensus estimate of $65.95 million. Analysts predict that Heritage Financial will post 2.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Heritage Financial

In related news, President Bryan Mcdonald purchased 19,106 shares of the firm’s stock in a transaction dated Thursday, November 20th. The stock was bought at an average price of $22.32 per share, for a total transaction of $426,445.92. Following the purchase, the president owned 31,363 shares in the company, valued at $700,022.16. The trade was a 155.88% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Heritage Financial

A number of large investors have recently added to or reduced their stakes in the stock. Hantz Financial Services Inc. raised its position in shares of Heritage Financial by 316.9% in the third quarter. Hantz Financial Services Inc. now owns 1,651 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 1,255 shares during the period. EverSource Wealth Advisors LLC grew its stake in Heritage Financial by 27,871.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,958 shares of the financial services provider’s stock valued at $47,000 after buying an additional 1,951 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in Heritage Financial by 99.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,875 shares of the financial services provider’s stock valued at $69,000 after buying an additional 1,431 shares during the last quarter. GAMMA Investing LLC lifted its position in Heritage Financial by 53.3% during the 2nd quarter. GAMMA Investing LLC now owns 4,557 shares of the financial services provider’s stock worth $109,000 after acquiring an additional 1,585 shares during the last quarter. Finally, CWM LLC lifted its position in Heritage Financial by 100.5% during the 3rd quarter. CWM LLC now owns 7,657 shares of the financial services provider’s stock worth $185,000 after acquiring an additional 3,838 shares during the last quarter. Institutional investors own 78.30% of the company’s stock.

Key Heritage Financial News

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

• Positive Sentiment: Q4 results beat consensus: Heritage reported $0.66 EPS vs. ~$0.57 expected and revenue slightly above estimates; management highlighted improved net margin and ROA expansion that support near-term profitability momentum. Heritage Financial Announces Fourth Quarter and Annual 2025 Results
• Positive Sentiment: Management quantified merger upside: Management said integration of Olympic (the planned acquisition) could drive margin improvement approaching 4% as cost saves and scale benefits are realized — a clear earnings-accretive thesis if realized. Heritage Financial outlines margin improvement potential near 4% with Olympic merger integration
• Positive Sentiment: Shareholders approved stock issuance to facilitate the merger: The vote clears a key regulatory/transactional step and reduces execution risk for the acquisition that management says will boost scale. This approval is being read as supportive for future EPS growth. Heritage Financial Shareholders Approve Stock Issuance for Merger
• Neutral Sentiment: Earnings call/transcripts and slides available: Management commentary (transcript and slide deck) gives details on credit quality, expense plans, and integration timeline — useful for modeling but not adding new guidance. Heritage Financial Corporation (HFWA) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Market write-ups summarize metrics vs. estimates: Outlets (Zacks, Investing, Yahoo) highlight the beat, margins, and modest revenue beat; these help confirm the headline beat but add little incremental guidance. Heritage Financial (HFWA) Q4 Earnings and Revenues Top Estimates
• Negative Sentiment: Potential dilution and execution risk: While the stock issuance enables the deal, it creates dilution risk and execution/timing uncertainty for merger synergies — investors should model potential share count impact and integration costs against the promised margin gains. Heritage Financial Posts Strong Quarter and Prepares Acquisition

Heritage Financial Company Profile

Heritage Financial Corporation (NASDAQ:HFWA) is a bank holding company headquartered in Spokane, Washington. Through its primary subsidiary, Heritage Bank, the company provides a comprehensive range of banking and financial services to both individual and commercial clients. Heritage Bank’s offerings encompass deposit products, lending solutions, treasury and cash management services, mortgage banking, and wealth management, positioning the organization as a full-service community bank.

The company’s lending portfolio includes commercial real estate loans, agricultural loans, small business administration (SBA) loans, construction and development financing, and a variety of consumer mortgage products.