DA Davidson Has Negative Outlook of Veritex FY2025 Earnings

Veritex Holdings, Inc. (NASDAQ:VBTX) – DA Davidson cut their FY2025 earnings per share (EPS) estimates for shares of Veritex in a report issued on Monday, September 29th. DA Davidson analyst G. Tenner now expects that the financial services provider will post earnings of $2.27 per share for the year, down from their previous estimate of $2.28. DA Davidson has a “Buy” rating and a $39.00 price target 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 $2.31 EPS.

A number of other research analysts have also weighed in on the stock. Keefe, Bruyette & Woods raised their target price on shares of Veritex from $30.00 to $37.00 and gave the stock a “market perform” rating in a research note on Tuesday, July 22nd. The Goldman Sachs Group initiated coverage on shares of Veritex in a research note on Monday, July 14th. They issued a “buy” rating on the stock. Piper Sandler reissued a “neutral” rating and issued a $34.00 target price (up from $30.00) on shares of Veritex in a research note on Wednesday, July 16th. Finally, William Blair raised shares of Veritex to an “outperform” rating in a research note on Monday, July 14th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $33.25.

Veritex Trading Down 0.4%

VBTX opened at $33.66 on Tuesday. 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’s 50 day simple moving average is $33.02 and its two-hundred day simple moving average is $27.67. Veritex has a 1-year low of $20.37 and a 1-year high of $34.96. The firm has a market capitalization of $1.84 billion, a price-to-earnings ratio of 16.03 and a beta of 1.08.

Veritex (NASDAQ:VBTX) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.02. Veritex had a return on equity of 7.55% and a net margin of 14.83%.The company had revenue of $109.83 million for the quarter, compared to analysts’ expectations of $110.91 million. During the same period in the previous year, the firm posted $0.52 EPS.

Institutional Trading of Veritex

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VBTX. Smartleaf Asset Management LLC raised its position in Veritex by 50.6% in the second quarter. Smartleaf Asset Management LLC now owns 1,042 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 350 shares during the period. Acadian Asset Management LLC purchased a new stake in Veritex in the first quarter valued at approximately $28,000. Opal Wealth Advisors LLC purchased a new stake in Veritex in the first quarter valued at approximately $31,000. EverSource Wealth Advisors LLC raised its position in Veritex by 260.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,571 shares of the financial services provider’s stock valued at $41,000 after purchasing an additional 1,135 shares during the period. Finally, GAMMA Investing LLC raised its position in Veritex by 28.9% in the second quarter. GAMMA Investing LLC now owns 4,513 shares of the financial services provider’s stock valued at $118,000 after purchasing an additional 1,011 shares during the period. Hedge funds and other institutional investors own 88.31% of the company’s stock.

Insider Transactions at Veritex

In related news, CEO C Malcolm Holland III sold 125,762 shares of the company’s stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $32.26, for a total value of $4,057,082.12. Following the transaction, the chief executive officer directly owned 294,508 shares in the company, valued at approximately $9,500,828.08. This represents a 29.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Cara Mcdaniel sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $32.53, for a total value of $325,300.00. Following the completion of the transaction, the insider owned 17,372 shares in the company, valued at $565,111.16. This represents a 36.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 320,699 shares of company stock valued at $10,361,627 in the last ninety days. 4.30% of the stock is currently owned by corporate insiders.

Veritex Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be issued a $0.22 dividend. The ex-dividend date is Tuesday, September 16th. This represents a $0.88 dividend on an annualized basis and a yield of 2.6%. Veritex’s dividend payout ratio is currently 41.90%.

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.