Taking on analysts’ expectations and winning: Valley National Bancorp (VLY)

Valley National Bancorp (NASDAQ: VLY) stock fell -2.18% on Wednesday to $7.63 against a previous-day closing price of $7.80. With 3.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.28 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $7.77 whereas the lowest price it dropped to was $7.55. The 52-week range on VLY shows that it touched its highest point at $13.07 and its lowest point at $6.39 during that stretch. It currently has a 1-year price target of $10.83. With its current market cap of 4.10 billion, VLY has annualized dividend of $0.44 while the current yield stands at 5.77%. Beta for the stock currently stands at 1.12.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VLY was up-trending over the past week, with a rise of 3.95%, but this was down by -8.40% over a month. Three-month performance dropped to -35.01% while six-month performance fell -38.02%. The stock lost -37.77% in the past year, while it has lost -32.54% so far this year. A look at the trailing 12-month EPS for VLY yields 1.15 with Next year EPS estimates of 1.23. For the next quarter, that number is 0.31. This implies an EPS growth rate of 1.30% for this year and 2.51% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.40%.

Float and Shares Shorts:

At present, 507.11 million VLY shares are outstanding with a float of 499.30 million shares on hand for trading. On Apr 27, 2023, short shares totaled 25.42 million, which was 5.01% higher than short shares on Mar 30, 2023. In addition to Mr. Ira D. Robbins as the firm’s Chairman & CEO, Mr. Thomas A. Iadanza serves as its Pres & Chief Banking Officer.

Institutional Ownership:

Through their ownership of 73.82% of VLY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.47% of VLY, in contrast to 3.94% held by mutual funds. Shares owned by individuals account for 16.74%. As the largest shareholder in VLY with 11.44% of the stake, BlackRock Fund Advisors holds 58,065,395 shares worth 58,065,395. A second-largest stockholder of VLY, The Vanguard Group, Inc., holds 44,490,755 shares, controlling over 8.76% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in VLY, holding 21,617,947 shares or 4.26% stake. With a 2.61% stake in VLY, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 13,259,533 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.58% of VLY stock, is the second-largest Mutual Fund holder. It holds 13,115,256 shares valued at 123.02 million. iShares Tr. – Select Dividend ETF holds 2.25% of the stake in VLY, owning 11,432,896 shares worth 107.24 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VLY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VLY analysts setting a high price target of $13.00 and a low target of $8.00, the average target price over the next 12 months is $10.65. Based on these targets, VLY could surge 70.38% to reach the target high and rise by 4.85% to reach the target low. Reaching the average price target will result in a growth of 39.58% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, VLY has a current ratio of $0.44, which is $0.44 over the trailing 12-months, while a dividend of $0.44 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and VLY currently yields $5.77. In the past year, VLY’s dividend yield has been $5.77, but when looking at the stock over the past five years, its yield has been $4.10. Accordingly, VLY has a current buyback yield of $0.14. This was $0.14 for the TTM.

Summary of Insider Activity:

Insiders traded VLY stock several times over the past three months with 18 Buys and 2 Sells. In these transactions, 261,074 shares were bought while 19,070 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 32 over the past year. The total number of shares bought during that period was 894,717 while 316,230 shares were sold.

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