DA Davidson Has Bearish Forecast for Veritex FY2025 Earnings

Key Points

• DA Davidson has lowered its FY2025 earnings per share estimate for Veritex Holdings to $2.28, down from a previous forecast of $2.30, while maintaining a "Buy" rating and a price target of $39.00.
• Veritex reported better-than-expected quarterly earnings, achieving $0.56 per share, surpassing analysts' consensus estimate of $0.54, though revenue of $109.83 million fell short of the $110.91 million expectation.
• The company announced a quarterly dividend of $0.22 per share, translating to an annual yield of 2.71% and a payout ratio of 41.90%.

Veritex Holdings, Inc. (NASDAQ:VBTX - Free Report) - Investment analysts at DA Davidson dropped their FY2025 earnings per share estimates for shares of Veritex in a research report issued to clients and investors on Thursday, July 24th. DA Davidson analyst G. Tenner now forecasts that the financial services provider will post earnings of $2.28 per share for the year, down from their prior forecast of $2.30. DA Davidson currently has a "Buy" rating and a $39.00 target price on the stock. The consensus estimate for Veritex's current full-year earnings is $2.26 per share. DA Davidson also issued estimates for Veritex's FY2026 earnings at $2.40 EPS.

Veritex (NASDAQ:VBTX - Get Free Report) last posted its quarterly earnings results on Friday, July 18th. The financial services provider reported $0.56 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $0.02. Veritex had a net margin of 14.83% and a return on equity of 7.59%. The company had revenue of $109.83 million for the quarter, compared to analysts' expectations of $110.91 million. During the same quarter in the previous year, the firm posted $0.52 EPS.

VBTX has been the subject of several other reports. Raymond James Financial lowered shares of Veritex from a "strong-buy" rating to an "outperform" rating and cut their target price for the stock from $31.00 to $28.00 in a research report on Wednesday, April 2nd. Keefe, Bruyette & Woods increased their price target on shares of Veritex from $30.00 to $37.00 and gave the company a "market perform" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group assumed coverage on shares of Veritex in a report on Monday, July 14th. They issued a "buy" rating on the stock. William Blair upgraded shares of Veritex to an "outperform" rating in a report on Monday, July 14th. Finally, Stephens reiterated an "equal weight" rating and issued a $30.00 price target on shares of Veritex in a research report on Wednesday, April 23rd. Four investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, Veritex presently has an average rating of "Moderate Buy" and a consensus price target of $33.25.

Veritex Stock Performance

VBTX stock traded down $0.15 during midday trading on Monday, reaching $31.89. 79,026 shares of the company's stock traded hands, compared to its average volume of 549,769. The firm has a market capitalization of $1.73 billion, a PE ratio of 15.21 and a beta of 1.03. Veritex has a 52 week low of $20.10 and a 52 week high of $33.69. The company has a 50-day moving average price of $27.17 and a two-hundred day moving average price of $25.54. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.94 and a current ratio of 0.94.

Veritex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be paid a dividend of $0.22 per share. The ex-dividend date is Thursday, August 7th. This represents a $0.88 dividend on an annualized basis and a yield of 2.76%. Veritex's payout ratio is 41.90%.

Insider Activity at Veritex

In related news, CEO C Malcolm Holland III sold 125,762 shares of the stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $32.26, for a total transaction of $4,057,082.12. Following the sale, the chief executive officer directly owned 294,508 shares of the company's stock, valued at approximately $9,500,828.08. This represents a 29.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, COO Lavonda Renfro sold 53,411 shares of the stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $32.38, for a total transaction of $1,729,448.18. Following the sale, the chief operating officer directly owned 60,209 shares in the company, valued at $1,949,567.42. This trade represents a 47.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 300,531 shares of company stock worth $9,724,762. 4.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Veritex

Institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. boosted its stake in shares of Veritex by 9.8% in the fourth quarter. Meeder Asset Management Inc. now owns 5,366 shares of the financial services provider's stock valued at $146,000 after purchasing an additional 481 shares during the period. Harbor Capital Advisors Inc. lifted its stake in Veritex by 2.7% in the second quarter. Harbor Capital Advisors Inc. now owns 19,978 shares of the financial services provider's stock worth $521,000 after acquiring an additional 530 shares during the last quarter. SummerHaven Investment Management LLC lifted its stake in Veritex by 1.5% in the first quarter. SummerHaven Investment Management LLC now owns 37,056 shares of the financial services provider's stock worth $925,000 after acquiring an additional 536 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in Veritex by 7.2% in the fourth quarter. Tower Research Capital LLC TRC now owns 11,166 shares of the financial services provider's stock worth $303,000 after acquiring an additional 751 shares during the last quarter. Finally, Quarry LP lifted its stake in Veritex by 117.0% in the fourth quarter. Quarry LP now owns 1,528 shares of the financial services provider's stock worth $42,000 after acquiring an additional 824 shares during the last quarter. 88.31% of the stock is currently owned by institutional investors and hedge funds.

About Veritex

Veritex Holdings, Inc operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial real estate and general commercial, mortgage warehouse loans, residential real estate, construction and land, farmland, paycheck protection program, 1-4 family residential, agricultural, multi-family residential, and consumer loans, as well as purchased receivables financing.