Veritex (NASDAQ:VBTX) Shares Gap Down After Earnings Miss

Veritex Holdings, Inc. (NASDAQ:VBTX) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $20.77, but opened at $20.13. Veritex shares last traded at $20.80, with a volume of 83,242 shares traded.

The financial services provider reported $0.53 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.06). Veritex had a return on equity of 9.47% and a net margin of 14.51%. The business had revenue of $191.25 million for the quarter, compared to the consensus estimate of $109.70 million. During the same quarter in the previous year, the business posted $0.79 EPS.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on VBTX shares. Piper Sandler boosted their price objective on Veritex from $23.50 to $25.00 and gave the stock an “overweight” rating in a report on Thursday, January 25th. Keefe, Bruyette & Woods lowered their price objective on shares of Veritex from $29.00 to $27.00 and set an “outperform” rating for the company in a research report on Thursday, January 25th. StockNews.com downgraded shares of Veritex from a “hold” rating to a “sell” rating in a report on Tuesday, April 16th. Finally, Stephens reiterated an “equal weight” rating and set a $24.00 price target on shares of Veritex in a report on Monday, April 1st. One analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Veritex currently has a consensus rating of “Hold” and an average target price of $24.13.

Institutional Trading of Veritex

Several institutional investors have recently modified their holdings of the business. Assenagon Asset Management S.A. grew its stake in shares of Veritex by 968.5% in the first quarter. Assenagon Asset Management S.A. now owns 566,284 shares of the financial services provider’s stock worth $11,603,000 after purchasing an additional 513,284 shares during the last quarter. Vanguard Group Inc. boosted its position in Veritex by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 3,772,114 shares of the financial services provider’s stock valued at $87,777,000 after acquiring an additional 52,933 shares during the last quarter. Wellington Management Group LLP boosted its position in Veritex by 10.1% during the fourth quarter. Wellington Management Group LLP now owns 547,221 shares of the financial services provider’s stock valued at $12,734,000 after acquiring an additional 50,406 shares during the last quarter. Mendon Capital Advisors Corp bought a new stake in Veritex during the fourth quarter valued at $8,144,000. Finally, Clear Street Markets LLC bought a new stake in Veritex during the fourth quarter valued at $198,000. Institutional investors own 88.31% of the company’s stock.

Veritex Stock Down 0.7 %

The company has a quick ratio of 0.96, a current ratio of 0.97 and a debt-to-equity ratio of 0.22. The firm has a market cap of $1.12 billion, a P/E ratio of 10.31 and a beta of 1.34. The stock’s 50-day simple moving average is $19.86 and its 200 day simple moving average is $20.28.

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.