why Valley National Bancorp [VLY] is a Good Choice for Investors After New Price Target of $14.92

Valley National Bancorp [NASDAQ: VLY] loss 0.00% on the last trading session, reaching $13.45 price per share at the time. The company report on May 26, 2021 that Valley National Bancorp Announces Pricing of Subordinated Notes.

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Valley National Bancorp (NASDAQ:VLY) (“Valley”) announced that it priced $300 million of its 3.00% Fixed-to-Floating Rate Notes due 2031 (the “Notes”). Interest on the Notes will accrue at a rate equal to (i) 3.00% per annum from the original issue date to, but excluding, June 15, 2026, payable semiannually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Notes), plus a spread of 236 basis points from, and including, June 15, 2026, payable quarterly in arrears. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

Valley intends to use the net proceeds from the offering of the Notes for general corporate purposes and investments in Valley National Bank as regulatory capital. The offering is expected to close on May 28, 2021, subject to customary closing conditions.

Valley National Bancorp represents 405.15 million in outstanding shares, while the company has a total market value of $5.70 billion with the latest information. VLY stock price has been found in the range of $13.44 to $13.61.

If compared to the average trading volume of 2.23M shares, VLY reached a trading volume of 1750848 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Valley National Bancorp [VLY]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VLY shares is $14.92 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VLY stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Hovde Group have made an estimate for Valley National Bancorp shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on April 07, 2021. While these analysts kept the previous recommendation, Keefe Bruyette raised their target price to Outperform. The new note on the price target was released on February 10, 2021, representing the official price target for Valley National Bancorp stock. Previously, the target price had yet another raise to $7, while Citigroup analysts kept a Sell rating on VLY stock.

The Average True Range (ATR) for Valley National Bancorp is set at 0.39, with the Price to Sales ratio for VLY stock in the period of the last 12 months amounting to 4.22. The Price to Book ratio for the last quarter was 1.22, with the Price to Cash per share for the same quarter was set at 3.85. Price to Free Cash Flow for VLY in the course of the last twelve months was 15.06.

Trading performance analysis for VLY stock

Valley National Bancorp [VLY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.28. With this latest performance, VLY shares dropped by -5.81% in over the last four-week period, additionally plugging by 40.10% over the last 6 months – not to mention a rise of 75.36% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VLY stock in for the last two-week period is set at 42.80, with the RSI for the last a single of trading hit 41.50, and the three-weeks RSI is set at 44.77 for Valley National Bancorp [VLY]. The present Moving Average for the last 50 days of trading for this stock 14.04, while it was recorded at 13.36 for the last single week of trading, and 11.12 for the last 200 days.

Valley National Bancorp [VLY]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Valley National Bancorp [VLY] shares currently have an operating margin of +35.03. Valley National Bancorp’s Net Margin is presently recorded at +25.07.

Return on Total Capital for VLY is now 6.68, given the latest momentum, and Return on Invested Capital for the company is 5.80. Return on Equity for this stock inclined to 8.70, with Return on Assets sitting at 1.00. When it comes to the capital structure of this company, Valley National Bancorp [VLY] has a Total Debt to Total Equity ratio set at 82.24. Additionally, VLY Total Debt to Total Capital is recorded at 45.13, with Total Debt to Total Assets ending up at 9.26. Long-Term Debt to Equity for the company is recorded at 46.55, with the Long-Term Debt to Total Capital now at 24.38.

Reflecting on the efficiency of the workforce at the company, Valley National Bancorp [VLY] managed to generate an average of $123,805 per employee.

Valley National Bancorp [VLY]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Valley National Bancorp posted 0.23/share EPS, while the average EPS was predicted by analysts to be reported at 0.21/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 9.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VLY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Valley National Bancorp go to 5.00%.

An analysis of insider ownership at Valley National Bancorp [VLY]

There are presently around $3,513 million, or 66.70% of VLY stock, in the hands of institutional investors. The top three institutional holders of VLY stocks are: BLACKROCK INC. with ownership of 56,579,206, which is approximately 8.458% of the company’s market cap and around 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 38,472,187 shares of the stock with an approximate value of $517.45 million in VLY stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $309.78 million in VLY stock with ownership of nearly -0.375% of the company’s market capitalization.

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Positions in Valley National Bancorp stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 119 institutional holders increased their position in Valley National Bancorp [NASDAQ:VLY] by around 28,352,755 shares. Additionally, 151 investors decreased positions by around 14,767,794 shares, while 57 investors held positions by with 218,104,037 shares. The mentioned changes placed institutional holdings at 261,224,586 shares, according to the latest SEC report filing. VLY stock had 40 new institutional investments in for a total of 12,148,557 shares, while 34 institutional investors sold positions of 2,620,552 shares during the same period.

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