Hanmi Financial (HAFC) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Hanmi Financial (NASDAQ:HAFC) from a hold rating to a sell rating in a report issued on Wednesday morning.

According to Zacks, “Hanmi Financial Corporation is the holding company for Hanmi Bank, one of the leading banks providing services to the multi-ethnic communities of Southern California with full service offices. Hanmi Bank is a business bank conducting a general community banking business, with its primary market encompassing multi-ethnic small business customers. The bank specializes in commercial, SBA, trade finance, and consumer lending and is a recognized community leader serving the diverse communities throughout Southern California. (PRESS RELEASE) “

HAFC has been the topic of a number of other research reports. ValuEngine raised Hanmi Financial from a strong sell rating to a sell rating in a report on Saturday, August 18th. Raymond James lowered their target price on Hanmi Financial from $29.00 to $23.00 and set an outperform rating on the stock in a report on Monday, October 29th. TheStreet downgraded Hanmi Financial from a b- rating to a c+ rating in a report on Thursday, October 18th. FIG Partners downgraded Hanmi Financial from an outperform rating to a market perform rating in a report on Wednesday, October 24th. Finally, Piper Jaffray Companies set a $28.00 target price on Hanmi Financial and gave the company a hold rating in a report on Monday, October 8th. Three investment analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company’s stock. Hanmi Financial presently has a consensus rating of Hold and an average price target of $28.50.

Shares of NASDAQ:HAFC opened at $20.70 on Wednesday. The firm has a market cap of $654.04 million, a PE ratio of 11.44, a price-to-earnings-growth ratio of 1.32 and a beta of 0.89. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.02 and a current ratio of 1.02. Hanmi Financial has a 1 year low of $17.56 and a 1 year high of $32.46.

Hanmi Financial (NASDAQ:HAFC) last announced its quarterly earnings results on Tuesday, October 23rd. The bank reported $0.50 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.01). Hanmi Financial had a net margin of 22.82% and a return on equity of 10.92%. The business had revenue of $51.54 million for the quarter, compared to the consensus estimate of $53.60 million. On average, research analysts predict that Hanmi Financial will post 1.94 earnings per share for the current fiscal year.

Hanmi Financial declared that its board has authorized a share repurchase plan on Thursday, August 30th that permits the company to repurchase 1,600,000 outstanding shares. This repurchase authorization permits the bank to reacquire shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

The company also recently announced a quarterly dividend, which was paid on Monday, November 26th. Shareholders of record on Friday, November 2nd were issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 4.64%. The ex-dividend date of this dividend was Thursday, November 1st. Hanmi Financial’s dividend payout ratio is 53.04%.

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. lifted its holdings in Hanmi Financial by 1.1% in the third quarter. BlackRock Inc. now owns 4,669,171 shares of the bank’s stock valued at $116,264,000 after acquiring an additional 50,714 shares during the period. Dimensional Fund Advisors LP increased its position in Hanmi Financial by 6.6% in the third quarter. Dimensional Fund Advisors LP now owns 2,331,497 shares of the bank’s stock worth $58,054,000 after buying an additional 144,366 shares in the last quarter. Vanguard Group Inc. increased its position in Hanmi Financial by 1.6% in the third quarter. Vanguard Group Inc. now owns 1,949,089 shares of the bank’s stock worth $48,532,000 after buying an additional 30,205 shares in the last quarter. LSV Asset Management increased its position in Hanmi Financial by 7.9% in the third quarter. LSV Asset Management now owns 1,355,715 shares of the bank’s stock worth $33,757,000 after buying an additional 99,130 shares in the last quarter. Finally, Boston Partners increased its position in Hanmi Financial by 1.9% in the second quarter. Boston Partners now owns 970,073 shares of the bank’s stock worth $27,501,000 after buying an additional 17,937 shares in the last quarter. 89.70% of the stock is currently owned by institutional investors.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit.

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