Veritex (NASDAQ:VBTX) Shares Gap Down on Disappointing Earnings

Veritex Holdings, Inc. (NASDAQ:VBTX)’s share price 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 changing hands.

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

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Keefe, Bruyette & Woods reduced their price target on Veritex from $29.00 to $27.00 and set an “outperform” rating on the stock in a report on Thursday, January 25th. Piper Sandler lifted their price target on Veritex from $23.50 to $25.00 and gave the stock an “overweight” rating in a report on Thursday, January 25th. StockNews.com lowered Veritex from a “hold” rating to a “sell” rating in a report on Tuesday, April 16th. Finally, Stephens restated an “equal weight” rating and issued a $24.00 price objective on shares of Veritex in a report on Wednesday. One investment analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $24.13.

Institutional Trading of Veritex

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Assenagon Asset Management S.A. increased its stake in Veritex by 968.5% during 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 period. Vanguard Group Inc. grew its position in shares of Veritex by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 3,772,114 shares of the financial services provider’s stock worth $87,777,000 after buying an additional 52,933 shares in the last quarter. Wellington Management Group LLP grew its position in shares of Veritex by 10.1% during the fourth quarter. Wellington Management Group LLP now owns 547,221 shares of the financial services provider’s stock worth $12,734,000 after buying an additional 50,406 shares in the last quarter. Mendon Capital Advisors Corp acquired a new position in shares of Veritex during the fourth quarter worth about $8,144,000. Finally, Clear Street Markets LLC acquired a new position in shares of Veritex during the fourth quarter worth about $198,000. 88.31% of the stock is currently owned by hedge funds and other institutional investors.

Veritex Stock Performance

The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of 10.50 and a beta of 1.34. 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 stock has a 50-day moving average price of $19.87 and a 200 day moving average price of $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.