Valley National Bancorp (NASDAQ:VLY) Price Target Raised to $16.00 at Hovde Group

Key Points

• Hovde Group raised its price target on Valley National Bancorp from $15.00 to $16.00 and kept an "outperform" rating, implying roughly a 16% upside from the current share price.
• Valley posted a Q1 beat, reporting $0.29 EPS versus $0.27 expected and $540.4M in revenue versus $531.9M, with net income of $163.9M and improving profitability metrics.
• Analysts hold a consensus "Moderate Buy" stance with an average price target of $14.83; several firms have recently lifted targets to $16 while a few (e.g., JPMorgan) trimmed theirs to ~$14.50.

Valley National Bancorp (NASDAQ:VLY - Get Free Report) had its price objective upped by investment analysts at Hovde Group from $15.00 to $16.00 in a report issued on Friday. The brokerage currently has an "outperform" rating on the stock. Hovde Group's target price would indicate a potential upside of 16.19% from the company's current price.

A number of other equities research analysts have also recently issued reports on the stock. National Bank Financial set a $16.00 price objective on shares of Valley National Bancorp in a report on Friday, January 30th. Barclays boosted their price target on Valley National Bancorp from $13.00 to $14.00 and gave the stock an "equal weight" rating in a research report on Friday, January 30th. TD Cowen upped their price target on Valley National Bancorp from $15.00 to $16.00 and gave the stock a "buy" rating in a research note on Friday, January 30th. Raymond James Financial raised Valley National Bancorp from a "market perform" rating to a "strong-buy" rating and set a $15.00 price objective on the stock in a report on Friday, January 30th. Finally, JPMorgan Chase & Co. reduced their target price on Valley National Bancorp from $15.50 to $14.50 and set an "overweight" rating for the company in a report on Wednesday, April 1st. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $14.83.

Valley National Bancorp Price Performance

Shares of VLY opened at $13.77 on Friday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.97 and a current ratio of 0.97. The firm has a market cap of $7.65 billion, a PE ratio of 13.63 and a beta of 1.03. The firm's 50 day moving average price is $12.66 and its 200 day moving average price is $11.94. Valley National Bancorp has a twelve month low of $8.34 and a twelve month high of $14.12.

Valley National Bancorp (NASDAQ:VLY - Get Free Report) last posted its earnings results on Thursday, April 23rd. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. Valley National Bancorp had a net margin of 17.11% and a return on equity of 7.92%. The company had revenue of $540.36 million during the quarter, compared to the consensus estimate of $531.89 million. During the same period in the previous year, the firm posted $0.18 earnings per share. As a group, research analysts expect that Valley National Bancorp will post 1.25 EPS for the current fiscal year.

Insider Activity

In other Valley National Bancorp news, Director Carlos J. Vazquez purchased 2,500 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average cost of $13.45 per share, with a total value of $33,625.00. Following the completion of the transaction, the director owned 4,252 shares in the company, valued at $57,189.40. This trade represents a 142.69% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.06% of the company's stock.

Institutional Trading of Valley National Bancorp

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC acquired a new position in shares of Valley National Bancorp during the fourth quarter worth approximately $26,000. First Horizon Corp increased its position in Valley National Bancorp by 52.5% during the fourth quarter. First Horizon Corp now owns 3,219 shares of the company's stock worth $38,000 after acquiring an additional 1,108 shares during the period. Geneos Wealth Management Inc. acquired a new position in Valley National Bancorp during the 4th quarter valued at $39,000. Smartleaf Asset Management LLC boosted its holdings in Valley National Bancorp by 77.4% in the 3rd quarter. Smartleaf Asset Management LLC now owns 4,574 shares of the company's stock valued at $48,000 after purchasing an additional 1,996 shares during the period. Finally, Parallel Advisors LLC boosted its holdings in Valley National Bancorp by 24.5% in the 4th quarter. Parallel Advisors LLC now owns 4,347 shares of the company's stock valued at $51,000 after purchasing an additional 855 shares during the period. Institutional investors and hedge funds own 61.00% of the company's stock.

Key Stories Impacting Valley National Bancorp

Here are the key news stories impacting Valley National Bancorp this week:

• Positive Sentiment: Q1 beat on EPS and revenue — VLY reported $0.29 EPS vs. the $0.27 consensus and revenue of $540.4M vs. $531.9M expected, showing improved profitability year-over-year. This is the primary catalyst lifting the stock. Article Title
• Positive Sentiment: Solid headline metrics — Net income was $163.9M and EPS rose from $0.18 a year ago; reported ROE ~7.9% and net margin ~17.1% underline the earnings improvement. Article Title
• Positive Sentiment: Research coverage started — Piper Sandler initiated coverage, which can support demand for the stock as fund managers and institutional investors take note. Article Title
• Neutral Sentiment: Investor materials available — The company published an earnings presentation and slide deck and held the conference call, giving investors more detail to assess loan trends, margins and capital. Those materials may confirm the positives or highlight risks. Article Title
• Neutral Sentiment: Wider coverage and previews — Multiple outlets published previews and snapshots ahead of results; these drove attention but contained no new negative surprises. Article Title
• Negative Sentiment: Liquidity/ratio context and relative returns — Valley's reported current and quick ratios (~0.97) and a mid-single-digit ROE may concern some investors who prefer stronger liquidity or higher returns; these metrics could limit multiple expansion absent sustained progress. Article Title

Valley National Bancorp Company Profile

Valley National Bancorp NASDAQ: VLY is a regional bank holding company headquartered in Wayne, New Jersey, offering a comprehensive suite of commercial and consumer banking products and services. Through its banking subsidiary, Valley National Bank, the company provides deposit accounts, residential and commercial lending, mortgage services, treasury and cash management, foreign exchange and trade finance solutions. Complementary wealth management and insurance offerings round out its financial services platform, catering to individual, small-business and corporate clients.

Tracing its roots to the establishment of Wayne National Bank in 1927, Valley has grown into one of the largest banks in New Jersey by both assets and deposit share.

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