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

Shares of Veritex Holdings, Inc. (NASDAQ:VBTX) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. 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 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.06). Veritex had a net margin of 14.51% and a return on equity of 9.47%. The company had revenue of $191.25 million for the quarter, compared to analysts’ expectations of $109.70 million. During the same period in the previous year, the firm earned $0.79 earnings per share.

Analyst Upgrades and Downgrades

VBTX has been the subject of a number of recent analyst reports. Piper Sandler upped their price target on shares of Veritex from $23.50 to $25.00 and gave the stock an “overweight” rating in a research report on Thursday, January 25th. Keefe, Bruyette & Woods decreased their price target on shares of Veritex from $29.00 to $27.00 and set an “outperform” rating on the stock in a research note on Thursday, January 25th. Stephens reissued an “equal weight” rating and issued a $24.00 target price on shares of Veritex in a research note on Monday, April 1st. Finally, StockNews.com downgraded shares of Veritex from a “hold” rating to a “sell” rating in a research note on Tuesday, April 16th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, Veritex presently has a consensus rating of “Hold” and an average target price of $24.13.

Institutional Trading of Veritex

Large investors have recently bought and sold shares of the stock. Cape Investment Advisory Inc. purchased a new stake in shares of Veritex in the 4th quarter valued at $52,000. Fifth Third Bancorp boosted its holdings in shares of Veritex by 1,319.3% in the 3rd quarter. Fifth Third Bancorp now owns 3,236 shares of the financial services provider’s stock valued at $58,000 after acquiring an additional 3,008 shares during the last quarter. GAMMA Investing LLC purchased a new stake in shares of Veritex in the 4th quarter valued at $60,000. Quest Partners LLC purchased a new stake in shares of Veritex in the 4th quarter valued at $76,000. Finally, TFO Wealth Partners LLC lifted its stake in shares of Veritex by 363,500.0% in the 4th quarter. TFO Wealth Partners LLC now owns 3,636 shares of the financial services provider’s stock valued at $85,000 after purchasing an additional 3,635 shares during the period. Hedge funds and other institutional investors own 88.31% of the company’s stock.

Veritex Price Performance

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’s 50-day simple moving average is $19.86 and its two-hundred day simple moving average is $20.28. The company has a market capitalization of $1.12 billion, a price-to-earnings ratio of 10.31 and a beta of 1.34.

Veritex Company Profile

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.