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

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

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. The company had a trading volume of 355,369 shares, compared to its average volume of 185,339. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.95 and a quick ratio of 1.51. Heritage Global has a 12-month low of $1.01 and a 12-month high of $1.98. The company has a 50-day moving average price of $1.20 and a 200 day moving average price of $1.28. The firm has a market cap of $37.87 million, a price-to-earnings ratio of 10.90 and a beta of 0.45.

Insiders Place Their Bets

In other news, insider Nicholas Kirk Dove purchased 26,000 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were acquired at an average price of $1.22 per share, with a total value 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 15.60% of the stock is owned by insiders.

Institutional Trading of Heritage Global

Institutional investors have recently modified their holdings of the company. Rothschild Wealth LLC purchased a new position in shares of Heritage Global during the fourth quarter valued at approximately $447,000. Mink Brook Asset Management LLC boosted its position in shares of Heritage Global by 7.8% during the fourth quarter. Mink Brook Asset Management LLC now owns 2,028,844 shares of the company’s stock valued at $2,516,000 after purchasing an additional 146,622 shares in the last quarter. Punch & Associates Investment Management Inc. boosted its position in shares of Heritage Global by 0.9% during the third quarter. Punch & Associates Investment Management Inc. now owns 2,475,228 shares of the company’s stock valued at $4,109,000 after purchasing an additional 21,175 shares in the last quarter. Citadel Advisors LLC grew its stake in Heritage Global by 17.0% in the third quarter. Citadel Advisors LLC now owns 73,465 shares of the company’s stock worth $122,000 after purchasing an additional 10,672 shares during the period. Finally, XTX Topco Ltd purchased a new stake in Heritage Global in the fourth quarter worth $31,000. 33.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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