Hilltop Holdings Inc. (HTH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Hilltop Holdings Inc. (HTH) Financial Services Profile

Hilltop Holdings Inc. is a financial services company providing banking, broker-dealer, and mortgage origination services. With a $2.20B market cap and a dividend yield of 2.01%, Hilltop operates in a competitive regional banking sector, balancing traditional financial services with evolving market demands.

What Is the Investment Thesis for HTH?

Hilltop Holdings presents a mixed investment thesis. The company's diversified business model, spanning banking, broker-dealer, and mortgage origination services, offers resilience across different economic cycles. With a P/E ratio of 14.41 and a dividend yield of 2.01%, the company offers potential value and income. A gross margin of 79.4% indicates efficient operations. However, the company's beta of 0.92 suggests market sensitivity. Growth catalysts include expansion of wealth management and mortgage origination services. Potential risks include regulatory changes and interest rate fluctuations impacting lending margins. Investors should monitor the company's ability to maintain profitability and manage credit risk in a changing economic environment.

Based on FMP financials and quantitative analysis

HTH Key Highlights

Market capitalization of $2.20B, reflecting its position as a significant regional financial services provider.

• P/E ratio of 14.41, suggesting a potentially reasonable valuation compared to earnings.
• Profit margin of 10.1%, indicating solid profitability in the financial services sector.
• Gross margin of 79.4%, highlighting efficient operations and cost management.
• Dividend yield of 2.01%, offering an income stream for investors.

Who Are HTH's Competitors?

HTH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HTH's Key Strengths?

Diversified revenue streams across banking, broker-dealer, and mortgage origination.

• Strong presence in the Texas market.
• Solid gross margin of 79.4%.
• Dividend yield of 2.01% provides investor income.

What Are HTH's Weaknesses?

Sensitivity to interest rate fluctuations.

• Exposure to regulatory changes in the financial services industry.
• Reliance on the Texas economy.
• Potential for increased competition from fintech companies.

What Could Drive HTH Stock Higher?

Potential interest rate cuts by the Federal Reserve could stimulate mortgage origination demand.

• Expansion of wealth management services to attract new clients and increase assets under management.
• Digital transformation initiatives to improve customer experience and streamline operations.

What Are the Key Risks for HTH?

Financial-distress signal — its Altman Z-Score of 0.31 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $2.1M recently.
• Economic downturn impacting loan demand and credit quality.
• Regulatory changes increasing compliance costs.
• Increased competition from larger national banks and fintech companies.

What Are the Growth Opportunities for HTH?

• Expansion of Wealth Management Services: Hilltop Holdings can grow its wealth management segment by offering personalized financial planning and investment advisory services. The wealth management market is expected to grow as the population ages and seeks retirement planning assistance. By leveraging its existing banking relationships and expanding its product offerings, Hilltop can attract new clients and increase assets under management. This expansion can contribute to higher fee income and improved profitability.
• Increased Mortgage Origination Volume: Hilltop Holdings can capitalize on the demand for mortgage loans by expanding its mortgage origination business. With interest rates stabilizing and the housing market showing signs of recovery, there is an opportunity to increase loan volume. By offering competitive rates and a variety of loan products, including conventional, jumbo, FHA, VA, and USDA loans, Hilltop can attract borrowers and increase its market share. This growth can lead to higher revenue and improved profitability.
• Strategic Acquisitions: Hilltop Holdings can pursue strategic acquisitions to expand its geographic footprint and product offerings. By acquiring smaller banks or financial services companies, Hilltop can enter new markets and gain access to new customers and technologies. These acquisitions can create synergies and improve the company's overall efficiency and profitability. Careful due diligence and integration are essential to ensure the success of these acquisitions.
• Digital Transformation Initiatives: Hilltop Holdings can invest in digital transformation initiatives to improve customer experience and streamline operations. By offering online and mobile banking services, Hilltop can attract and retain customers who prefer digital channels. Investing in automation and artificial intelligence can also improve efficiency and reduce costs. These digital initiatives can enhance the company's competitiveness and drive long-term growth.
• Cross-Selling Opportunities: Hilltop Holdings can leverage its diversified business model to cross-sell products and services to its existing customers. By offering banking, broker-dealer, and mortgage origination services under one roof, Hilltop can provide a convenient and comprehensive financial solution for its customers. This cross-selling strategy can increase customer loyalty and generate additional revenue. Effective marketing and training are essential to ensure the success of this strategy.

What Are HTH's Competitive Advantages?

• Diversified business model spanning banking, broker-dealer, and mortgage origination services.
• Established presence in the Texas market.
• Comprehensive suite of financial products and services.
• Experienced management team.

What Does HTH Do?

Hilltop Holdings Inc., established in 1998 and based in Dallas, Texas, operates as a diversified financial services company. It delivers business and consumer banking, along with a range of financial products and services. The company is structured into three primary segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers a comprehensive suite of deposit accounts, including savings, checking, and money market accounts, as well as certificates of deposit. It also provides various lending options such as lines and letters of credit, home improvement and equity loans, securities-backed loans, equipment loans and leases, agricultural and commercial real estate loans, and commercial and industrial loans. The segment further supports customers with treasury management, wealth management, asset management, check cards, safe deposit boxes, online banking, bill pay, trust, and overdraft services. The Broker-Dealer segment focuses on public finance, assisting public entities with securities origination, syndication, and distribution. It offers specialized advisory and investment banking services, arbitrage rebate compliance, portfolio management, and local government investment pool administration. Additionally, it provides structured finance services, including advisory services for derivatives and commodities, and engages in the sale, trading, and underwriting of various bonds and securities. The Mortgage Origination segment provides a range of mortgage products, including conventional, jumbo, FHA, VA, and USDA loans. Hilltop Holdings employs 3,616 individuals and maintains a profit margin of 10.1%.

What Products and Services Does HTH Offer?

• Provides business and consumer banking services.
• Offers a variety of deposit accounts, including savings, checking, and money market accounts.
• Provides lending services, including commercial and industrial loans, and real estate loans.
• Offers mortgage origination services, including conventional, jumbo, FHA, VA, and USDA loans.
• Provides public finance services to municipalities and political subdivisions.
• Offers specialized advisory and investment banking services.
• Engages in the sale, trading, and underwriting of various bonds and securities.
• Provides wealth management and asset management services.

How Does HTH Make Money?

• Generates revenue from interest income on loans and other assets.
• Earns fees from providing banking, broker-dealer, and mortgage origination services.
• Underwrites and trades securities, generating revenue from trading profits and commissions.
• Provides wealth management and asset management services, earning fees based on assets under management.

What Industry Does HTH Operate In?

Hilltop Holdings operates in the regional banking sector, which is characterized by increasing competition from both traditional banks and fintech companies. The industry is influenced by interest rate environments, regulatory changes, and economic cycles. The market is seeing a trend towards digital banking and personalized financial services. Hilltop competes with other regional banks and financial institutions. The company's diversified business model, including banking, broker-dealer, and mortgage origination services, positions it to capture opportunities in various segments of the financial services market.

Who Are HTH's Key Customers?

• Businesses seeking banking and financial services.
• Consumers seeking banking, mortgage, and wealth management services.
• Public entities seeking public finance services.
• Investors seeking investment banking and brokerage services.

Company Profile

Hilltop Holdings Inc. operates in the Financial - Conglomerates industry within the Financial Services sector. It is headquartered in Dallas, US. The company is led by CEO Jeremy Blue Ford. HTH has traded publicly since 2004.

Hilltop Holdings Inc. Financial Trajectory

Hilltop Holdings Inc. (HTH) reported $389.0M in revenue for Q2 FY2026, reflecting 4.4% growth compared to the prior quarter. The company recorded net income of $36.5M, with diluted EPS of $0.63. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, HTH averaged $0.68 in diluted EPS.

How Hilltop Holdings Inc. Is Valued

Hilltop Holdings Inc. carries a market capitalization of $2.20B, placing it in the mid-cap category. Analyst price targets span from $42.00 to $42.00, with a consensus of $42.00. At the current price of $38.43, that implies approximately 9% upside potential. Relative to its peer group, HTH's quantitative score of 40/100 is below the peer average of 91/100.

Return on equity for Hilltop Holdings Inc. stands at 7.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. HTH trades at a trailing price-to-earnings ratio of 14.41, below the Financial Services sector average of ~17.50x. Its free cash flow yield is -6.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.88 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 7.0%, the inverse of the P/E and a quick read on earnings relative to price.

Hilltop Holdings Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.31 places it in the distress zone, a signal of elevated financial risk.

Hilltop Holdings Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 54.4% above estimates on average.

Over the past six months, Hilltop Holdings Inc. insiders filed 30 SEC Form 4 transactions — 8 sales and 22 purchases. On net that is roughly 39K shares disposed (about $2.1M), a signal worth weighing alongside the fundamentals.

HTH Financials

HTH Latest News

HTH Analyst Consensus

HTH MoonshotScore

Latest Hilltop Holdings Inc. Analysis

Common Questions About HTH (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources