Morgan Stanley Has Lowered Expectations for Valley National Bancorp (NASDAQ:VLY) Stock Price

Valley National Bancorp (NASDAQ:VLY) had its price objective dropped by investment analysts at Morgan Stanley from $17.00 to $16.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price target would suggest a potential upside of 25.79% from the company’s previous close.

A number of other brokerages have also commented on VLY. Royal Bank Of Canada reissued a “buy” rating on shares of Valley National Bancorp in a report on Wednesday, August 26th. Truist Financial increased their price target on Valley National Bancorp from $15.50 to $16.50 and gave the company a “buy” rating in a research report on Friday, July 10th. JPMorgan Chase & Co. dropped their price objective on Valley National Bancorp from $17.50 to $17.00 and set an “overweight” rating on the stock in a research note on Friday, July 24th. Barclays lifted their price objective on shares of Valley National Bancorp from $14.00 to $15.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 7th. Finally, Piper Sandler increased their target price on shares of Valley National Bancorp from $16.00 to $16.50 and gave the company an “overweight” rating in a report on Friday, June 26th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $16.46.

Valley National Bancorp Price Performance

Valley National Bancorp stock opened at $12.72 on Monday. The stock has a 50-day moving average price of $14.05 and a two-hundred day moving average price of $13.71. Valley National Bancorp has a 12 month low of $9.64 and a 12 month high of $15.20. The company has a market capitalization of $7.03 billion, a PE ratio of 10.78 and a beta of 1.03. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.35.

Valley National Bancorp (NASDAQ:VLY) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.01). The company had revenue of $560.74 million during the quarter, compared to analyst estimates of $557.16 million. Valley National Bancorp had a net margin of 19.49% and a return on equity of 9.13%. The company’s quarterly revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 EPS. Analysts expect that Valley National Bancorp will post 1.27 EPS for the current year.

Institutional Trading of Valley National Bancorp

Several hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC grew its stake in Valley National Bancorp by 5.7% in the second quarter. GAMMA Investing LLC now owns 15,999 shares of the company’s stock worth $234,000 after purchasing an additional 863 shares during the period. Rothschild Investment LLC lifted its holdings in shares of Valley National Bancorp by 7.3% during the fourth quarter. Rothschild Investment LLC now owns 13,592 shares of the company’s stock valued at $159,000 after purchasing an additional 923 shares during the last quarter. Waverly Advisors LLC lifted its holdings in shares of Valley National Bancorp by 5.8% during the first quarter. Waverly Advisors LLC now owns 20,546 shares of the company’s stock valued at $252,000 after purchasing an additional 1,124 shares during the last quarter. Assetmark Inc. boosted its position in shares of Valley National Bancorp by 123.7% in the 1st quarter. Assetmark Inc. now owns 2,150 shares of the company’s stock worth $26,000 after purchasing an additional 1,189 shares in the last quarter. Finally, Rockefeller Capital Management L.P. boosted its position in shares of Valley National Bancorp by 3.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 38,985 shares of the company’s stock worth $455,000 after purchasing an additional 1,220 shares in the last quarter. 61.00% of the stock is owned by institutional investors.

Key Headlines Impacting Valley National Bancorp

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

• Positive Sentiment: RBC reaffirmed its Outperform rating and $17 price target, implying substantial upside from recent trading levels and signaling confidence in Valley National’s earnings and growth prospects. RBC rating and price target
• Positive Sentiment: Valley National agreed to acquire Bluevine for approximately $340 million. Management says the transaction will accelerate its digital small-business strategy, expand its fintech capabilities and enhance core funding through additional deposits. The deal could create longer-term revenue and funding benefits if integration proceeds smoothly. Bluevine acquisition announcement
• Neutral Sentiment: Morgan Stanley maintained a Hold-equivalent view while setting a $16 price target. The target remains above the recent share price, but the rating indicates that the firm sees a relatively balanced risk-reward profile following the acquisition announcement. Morgan Stanley rating
• Negative Sentiment: Morgan Stanley lowered its price target from $17 to $16 and assigned an Equal Weight rating. The more cautious stance may be weighing on sentiment as investors assess the price paid for Bluevine, integration risks and the time required for the digital strategy to produce financial benefits. Morgan Stanley price-target update
• Negative Sentiment: Initial market reaction to the Bluevine announcement was unfavorable, with reports noting that Valley National shares slipped. Investors appear focused on near-term uncertainty surrounding deal execution and whether the acquisition will generate sufficient returns to offset its cost. Market reaction to Bluevine acquisition

About Valley National Bancorp

Valley National Bancorp is the bank holding company for Valley National Bank, a full-service regional financial institution headquartered in Wayne, New Jersey. Founded in 1927, the company provides banking and financial services to consumers, businesses, commercial real estate clients and municipalities.

Valley National Bank offers deposit accounts, consumer and business lending, commercial and industrial loans, commercial real estate financing, residential mortgages, home equity products, and treasury management services.