Heritage Global (NASDAQ:HGBL) Releases Earnings Results

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

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 Trading Up 0.9%

Heritage Global stock traded up $0.01 during trading hours on Friday, reaching $1.09. 355,369 shares of the company’s stock were exchanged, compared to its average volume of 185,339. The firm’s 50 day simple moving average is $1.20 and its 200 day simple moving average is $1.28. Heritage Global has a twelve month low of $1.01 and a twelve month high of $1.98. The company has a quick ratio of 1.51, a current ratio of 1.95 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $37.87 million, a PE ratio of 10.90 and a beta of 0.45.

Insider Activity at Heritage Global

In other Heritage Global news, insider Nicholas Kirk Dove bought 26,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was acquired at an average price of $1.22 per share, with a total value of $31,720.00. Following the completion of the purchase, the insider directly owned 126,000 shares of the company’s stock, valued at approximately $153,720. This trade represents a 26.00% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 15.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Heritage Global

A number of institutional investors and hedge funds have recently modified their holdings of HGBL. Evergreen Capital Management LLC bought a new stake in shares of Heritage Global in the 2nd quarter valued at $26,000. Virtu Financial LLC acquired a new stake in Heritage Global in the third quarter worth $28,000. XTX Topco Ltd bought a new stake in Heritage Global in the fourth quarter valued at $31,000. Jane Street Group LLC increased its stake in Heritage Global by 196.2% in the fourth quarter. Jane Street Group LLC now owns 29,651 shares of the company’s stock valued at $37,000 after purchasing an additional 19,642 shares in the last quarter. Finally, Susquehanna International Group LLP acquired a new position in shares of Heritage Global during the third quarter valued at about $71,000. 33.46% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

HGBL has been the topic of a number of research reports. Lake Street Capital reduced their target price on shares of Heritage Global from $4.50 to $3.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings upgraded shares of Heritage Global from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Heritage Global presently has an average rating of “Moderate Buy” and an average target price of $3.00.

About Heritage Global

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.