Valley National Bancorp (NASDAQ:VLY) Sets New 52-Week High After Strong Earnings

Key Points

• Shares hit a new 52-week high after Valley National reported Q earnings of $0.29 EPS versus $0.27 expected, trading as high as $14.12 on heavy volume and improving from $0.18 EPS a year earlier.
• The bank paid a quarterly dividend of $0.11 (annualized $0.44) with a yield of 3.3% and a payout ratio of 43.56% (ex-dividend and record date in mid-March, paid April 1).
• Analysts are broadly positive — the consensus rating is Moderate Buy with an average target of $14.77 and several recent upgrades/raised targets, while a director bought 2,500 shares and institutional investors own about 61% of the stock.

Valley National Bancorp (NASDAQ:VLY - Get Free Report) shares hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $14.12 and last traded at $13.5050, with a volume of 3920455 shares traded. The stock had previously closed at $13.25.

The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.02. Valley National Bancorp had a return on equity of 7.92% and a net margin of 17.11%.During the same quarter in the prior year, the company posted $0.18 EPS.

Valley National Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th were given a dividend of $0.11 per share. The ex-dividend date was Friday, March 13th. This represents a $0.44 dividend on an annualized basis and a yield of 3.3%. Valley National Bancorp's payout ratio is 43.56%.

Analyst Upgrades and Downgrades

VLY has been the subject of several analyst reports. Weiss Ratings upgraded shares of Valley National Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, February 6th. Piper Sandler initiated coverage on shares of Valley National Bancorp in a research report on Monday. They issued an "overweight" rating and a $15.50 price objective on the stock. Royal Bank Of Canada raised their price objective on shares of Valley National Bancorp from $13.00 to $14.00 and gave the stock an "outperform" rating in a research note on Friday, January 30th. National Bank Financial set a $16.00 target price on Valley National Bancorp in a research report on Friday, January 30th. Finally, Raymond James Financial raised Valley National Bancorp from a "market perform" rating to a "strong-buy" rating and set a $15.00 target price on the stock in a research note on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $14.77.

Insider Activity at Valley National Bancorp

In other news, Director Carlos J. Vazquez bought 2,500 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was acquired at an average cost of $13.45 per share, with a total value of $33,625.00. Following the transaction, the director directly owned 4,252 shares in the company, valued at approximately $57,189.40. This trade represents a 142.69% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.06% of the company's stock.

Institutional Investors Weigh In On Valley National Bancorp

A number of institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Valley National Bancorp by 5.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 282,143 shares of the company's stock worth $2,508,000 after acquiring an additional 15,771 shares during the last quarter. Jones Financial Companies Lllp acquired a new stake in Valley National Bancorp in the 1st quarter worth approximately $191,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Valley National Bancorp by 21.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,445,644 shares of the company's stock worth $12,852,000 after purchasing an additional 255,870 shares in the last quarter. Focus Partners Wealth grew its position in Valley National Bancorp by 34.9% during the 1st quarter. Focus Partners Wealth now owns 60,868 shares of the company's stock worth $541,000 after purchasing an additional 15,761 shares during the last quarter. Finally, Envestnet Asset Management Inc. purchased a new stake in Valley National Bancorp during the 2nd quarter worth approximately $119,000. Institutional investors own 61.00% of the company's stock.

Valley National Bancorp Price Performance

The stock's 50 day simple moving average is $12.65 and its 200-day simple moving average is $11.93. The firm has a market cap of $7.50 billion, a price-to-earnings ratio of 13.39 and a beta of 1.03. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.97 and a current ratio of 0.97.

About Valley National Bancorp

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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