EFSC - Heartland Financial USA: My Heart's Not In It Any More (Rating Downgrade)
2024-02-20 17:18:53 ET
Summary
- Heartland Financial USA's shares have performed well, but there are concerns about rising debt, falling deposits, and declining securities.
- The company recorded a net loss in the final quarter of 2023 due to a decision to sell off certain investment securities.
- While the stock is cheap compared to similar firms, there are issues with it, making it a mediocre investment option despite still looking cheap.
When it comes to investing, I have found that it is important to be flexible in your beliefs. When new data comes to light, you should use that data to re-evaluate your investment decisions. This is especially true when it comes to value-oriented investments because, from time to time, you can get a company that is cheap because it deserves to be cheap. Late last year, in October to be precise, I found myself becoming bullish on a bank called Heartland Financial USA ( HTLF ). At that time, I called the stock a bargain . Although deposits had dipped slightly in the second quarter of that year relative to the first quarter, the overall trend for deposits, loans, and other aspects of its balance sheet, were mostly positive. Shares looked cheap as well. And at the end of the day, I ended up rating the company a ‘buy’....
Heartland Financial USA: My Heart's Not In It Any More (Rating Downgrade)