Veritex (NASDAQ:VBTX) Shares Pass Below 50-Day Moving Average - Here's Why

Key Points

• Veritex Holdings, Inc. shares fell below their 50-day moving average of $33.10, trading as low as $29.79, reflecting notable volatility in the stock's performance.
• Several analysts have provided mixed ratings, with five suggesting a buy and four giving a hold rating; the stock has an average target price of $33.25.
• Veritex recently declared a quarterly dividend of $0.22, resulting in an annualized dividend of $0.88 and a yield of 2.9%.

Veritex Holdings, Inc. (NASDAQ:VBTX - Get Free Report)'s share price passed below its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $33.10 and traded as low as $29.79. Veritex shares last traded at $29.96, with a volume of 4,816,920 shares traded.

Analyst Ratings Changes

A number of brokerages recently commented on VBTX. The Goldman Sachs Group began coverage on Veritex in a research report on Monday, July 14th. They set a "buy" rating on the stock. Piper Sandler reiterated a "neutral" rating and set a $34.00 price objective (up previously from $30.00) on shares of Veritex in a research report on Wednesday, July 16th. DA Davidson lifted their price objective on Veritex from $32.00 to $39.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Keefe, Bruyette & Woods lifted their price objective on Veritex from $30.00 to $37.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 22nd. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Veritex in a research note on Wednesday, October 8th. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $33.25.

Veritex Stock Performance

The firm has a 50 day simple moving average of $33.10 and a 200-day simple moving average of $28.28. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.96 and a quick ratio of 0.96. The company has a market cap of $1.64 billion, a price-to-earnings ratio of 14.27 and a beta of 1.06.

Veritex (NASDAQ:VBTX - Get Free Report) last posted its earnings results on Thursday, March 3rd. The financial services provider reported $0.64 earnings per share (EPS) for the quarter. The company had revenue of $64.03 million during the quarter. Veritex had a return on equity of 7.55% and a net margin of 14.83%. As a group, analysts predict that Veritex Holdings, Inc. will post 2.26 EPS for the current fiscal year.

Veritex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were issued a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Tuesday, September 16th. Veritex's payout ratio is currently 41.90%.

Insider Transactions at Veritex

In related news, EVP Angela Harper sold 47,716 shares of the business's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $32.37, for a total value of $1,544,566.92. Following the sale, the executive vice president owned 59,683 shares in the company, valued at approximately $1,931,938.71. The trade was a 44.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Fallon William sold 7,220 shares of the business's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $30.68, for a total value of $221,509.60. Following the completion of the sale, the director owned 14,191 shares in the company, valued at $435,379.88. This represents a 33.72% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 320,699 shares of company stock worth $10,361,627. 4.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. CWM LLC grew its stake in Veritex by 17.2% during the 3rd quarter. CWM LLC now owns 18,920 shares of the financial services provider's stock worth $634,000 after purchasing an additional 2,781 shares in the last quarter. Harbor Capital Advisors Inc. grew its stake in Veritex by 4.9% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 20,960 shares of the financial services provider's stock worth $703,000 after purchasing an additional 982 shares in the last quarter. True North Advisors LLC grew its stake in Veritex by 23.6% during the 3rd quarter. True North Advisors LLC now owns 20,133 shares of the financial services provider's stock worth $675,000 after purchasing an additional 3,838 shares in the last quarter. Continental Advisors LLC acquired a new position in Veritex during the 2nd quarter worth $349,000. Finally, Public Sector Pension Investment Board grew its stake in Veritex by 7.0% during the 2nd quarter. Public Sector Pension Investment Board now owns 184,977 shares of the financial services provider's stock worth $4,828,000 after purchasing an additional 12,061 shares in the last quarter. 88.31% of the stock is 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.

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