On January 3, 2025, FJ Capital Management LLC (Trades, Portfolio) made a significant move by increasing its stake in Heritage Commerce Corp (HTBK, Financial). The firm added 342,350 shares to its portfolio, purchasing them at a price of $9.24 per share. This transaction resulted in a 0.33% increase in the firm's portfolio, bringing the total number of shares held to 3,383,156. Post-transaction, Heritage Commerce Corp now constitutes 3.26% of FJ Capital Management's portfolio.
Transaction Details and Portfolio Impact
The recent acquisition by FJ Capital Management LLC (Trades, Portfolio) involved a substantial addition of 342,350 shares of Heritage Commerce Corp, purchased at $9.24 each. This strategic move increased the firm's total holdings in the company to 3,383,156 shares. The transaction has positioned Heritage Commerce Corp as a significant component of the firm's portfolio, accounting for 3.26% of its total holdings. This addition reflects the firm's confidence in the potential of Heritage Commerce Corp within its investment strategy.
About FJ Capital Management LLC (Trades, Portfolio)
FJ Capital Management LLC (Trades, Portfolio) is an investment firm based in McLean, Virginia, with a focus on the financial services and real estate sectors. The firm manages a total equity of $954 million and holds a diversified portfolio with top holdings in companies such as Equity Bancshares Inc (EQBK, Financial), HomeTrust Bancshares Inc (HTBI, Financial), and Heritage Commerce Corp (HTBK, Financial). The firm's investment philosophy centers on identifying value opportunities within its preferred sectors.
Heritage Commerce Corp Overview
Heritage Commerce Corp, a bank holding company based in the USA, was established on July 20, 1998. The company provides commercial banking services through its subsidiary, focusing on small and medium-sized businesses. Operating through two segments, Banking and Factoring, Heritage Commerce Corp generates its revenue primarily from the Banking segment. The company has a market capitalization of $641.701 million, reflecting its established presence in the banking industry.
Financial Metrics and Valuation
As of February 13, 2025, Heritage Commerce Corp's stock is priced at $10.46, with a price-to-earnings ratio of 15.85. The stock is considered fairly valued, with a [GF Value](https://www.gurufocus.com/term/gf-score/HTBK) of $9.65, resulting in a price to GF Value ratio of 1.08. The year-to-date price change stands at 13.33%, indicating a positive trend in the stock's performance. Despite this, the company's [GF Score](https://www.gurufocus.com/term/gf-score/HTBK) is 66/100, suggesting poor future performance potential.
Performance and Growth Indicators
Heritage Commerce Corp's financial strength is reflected in its [Balance Sheet Rank](https://www.gurufocus.com/term/rank-balancesheet/HTBK) of 5/10 and [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/HTBK) of 4/10. However, its [Growth Rank](https://www.gurufocus.com/term/rank-growth/HTBK) is relatively low at 2/10. Over the past three years, the company has achieved a revenue growth of 7.50% and an impressive earnings growth of 21.80%, highlighting its potential for profitability despite modest growth metrics.
Market and Industry Context
Operating within the banking industry, Heritage Commerce Corp has a return on equity (ROE) of 5.95% and a return on assets (ROA) of 0.75%. The company's [Cash to Debt](https://www.gurufocus.com/term/interest-coverage/HTBK) ratio stands at 24.42, indicating a solid financial position. The banking sector's dynamics and the company's strategic positioning within it play a crucial role in its overall performance and growth potential.
Largest Shareholder Context
Hotchkis & Wiley Capital Management LLC is the largest shareholder of Heritage Commerce Corp, although the exact share percentage is not specified. This context provides insight into the competitive landscape of institutional investors within the company.
Transaction Analysis
The recent acquisition by FJ Capital Management LLC (Trades, Portfolio) underscores the firm's strategic focus on the financial services sector. By increasing its stake in Heritage Commerce Corp, the firm demonstrates confidence in the company's potential for growth and profitability. This transaction not only enhances the firm's portfolio but also aligns with its investment philosophy of identifying value opportunities within its preferred sectors. As Heritage Commerce Corp continues to navigate the banking industry, its performance will be closely monitored by investors and stakeholders alike.
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.
