Heritage Global (NASDAQ:HGBL) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Heritage Global (NASDAQ:HGBL) issued its quarterly earnings results on Thursday. The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.02, Zacks reports. Heritage Global had a net margin of 6.45% and a return on equity of 4.86%. The company had revenue of $12.27 million during the quarter, compared to analysts’ expectations of $13.29 million.

Here are the key takeaways from Heritage Global’s conference call:

• The company substantially wound down Heritage Global Capital, recording approximately $21.7 million in non-cash charges tied to non-performing loans. Consolidated operating loss was $20.9 million and net loss was $15.9 million, compared with net income of $1.6 million a year earlier.
• Management said exiting the capital business should reduce management distraction and allow capital and attention to shift toward the profitable industrial and financial-assets operations, which it views as stronger platforms for long-term growth.
• The DebtX, NLEX and newly acquired Boston Note businesses are being positioned as an asset-light brokerage platform covering performing and non-performing loans across residential and commercial markets. Management cited eight trial transactions generating more than $500,000 in revenue and sees significant expansion potential in seller-financed notes.
• Heritage Global reported a growing industrial-auction pipeline, including larger and more diverse opportunities in manufacturing, food and beverage, pharmaceuticals, EVs, cannabis, construction and transportation. The company is adding select sales personnel and believes activity should strengthen in the second half of the year.
• Quarterly revenue declined to $12.3 million from $14.3 million, while adjusted EBITDA fell to $1.2 million from $2.8 million. The company ended June with $13.2 million of cash, or $6.5 million in net available cash after client-related obligations, and $9.4 million of net working capital.

Heritage Global Stock Up 0.9%

NASDAQ:HGBL traded up $0.01 on Friday, reaching $1.09. 355,369 shares of the stock traded hands, compared to its average volume of 185,339. The company’s fifty day simple moving average is $1.20 and its 200 day simple moving average is $1.28. The company has a market capitalization of $37.87 million, a price-to-earnings ratio of 10.90 and a beta of 0.45. Heritage Global has a 12 month low of $1.01 and a 12 month high of $1.98. The company has a current ratio of 1.95, a quick ratio of 1.51 and a debt-to-equity ratio of 0.06.

Insider Buying and Selling at Heritage Global

In other news, insider Nicholas Kirk Dove acquired 26,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was bought at an average cost of $1.22 per share, for a total transaction of $31,720.00. Following the acquisition, the insider directly owned 126,000 shares in the company, valued at approximately $153,720. The trade was a 26.00% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 15.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HGBL. Citadel Advisors LLC boosted its position in shares of Heritage Global by 17.0% during the third quarter. Citadel Advisors LLC now owns 73,465 shares of the company’s stock valued at $122,000 after buying an additional 10,672 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Heritage Global by 29.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 49,951 shares of the company’s stock valued at $62,000 after acquiring an additional 11,512 shares during the period. Evergreen Capital Management LLC bought a new position in Heritage Global during the 2nd quarter valued at about $26,000. Virtu Financial LLC purchased a new stake in shares of Heritage Global during the 3rd quarter valued at about $28,000. Finally, Jane Street Group LLC boosted its holdings in shares of Heritage Global by 196.2% during the 4th quarter. Jane Street Group LLC now owns 29,651 shares of the company’s stock valued at $37,000 after acquiring an additional 19,642 shares during the last quarter. Hedge funds and other institutional investors own 33.46% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on HGBL shares. Weiss Ratings raised shares of Heritage Global from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday. Lake Street Capital cut their price target on Heritage Global from $4.50 to $3.00 and set a “buy” rating on the stock in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $3.00.

Heritage Global Company Profile

Heritage Global Inc operates as a global advisory and disposition firm specializing in the valuation, sale and auction of surplus and idle assets. Through its subsidiaries, Heritage Global Partners and Heritage Global Digital, the company delivers comprehensive end-to-end solutions, including asset appraisals, advisory services and multi-channel auction platforms. Its service offerings encompass industrial machinery and equipment, real estate, storage lockers and specialty assets, all designed to maximize recovery values for clients.

The company leverages both online and live in-person events to facilitate timely and transparent sales across diverse asset classes.