John Sughrue, a director at Veritex (NASDAQ:) Holdings, Inc. (NASDAQ:VBTX), lately offered a good portion of his holdings within the firm. In response to a latest SEC submitting, Sughrue disposed of a complete of 24,173 shares of frequent inventory on November 11, 2024. The shares had been offered at costs starting from $30.055 to $30.45, amounting to a complete transaction worth of roughly $732,305.
Following these transactions, Sughrue now immediately owns 62,643 shares of Veritex Holdings, whereas oblique possession via members of the family stays at a decrease stage. This sale represents a notable discount in Sughrue’s stake within the firm, which operates within the state business banking sector.
In different latest information, Veritex Holdings reported strong third-quarter 2024 outcomes with working earnings of $32.2 million and pretax pre-provision earnings of $44.6 million. Regardless of a lower in whole loans, the corporate famous development in income and an improved web curiosity margin. Piper Sandler and DA Davidson, following these outcomes, elevated their worth targets for Veritex to $30 and $33 respectively.
These latest developments have led to constructive suggestions from analysts. Piper Sandler maintained an Chubby ranking, emphasizing their confidence within the financial institution’s efficiency and potential for development. DA Davidson additionally maintained a Purchase ranking, highlighting the corporate’s sturdy core deposit franchise and secure web curiosity margin.
The conferences with Veritex’s CEO, CFO, and Director of Strategic Improvement left Piper Sandler with a powerful conviction within the potential for Veritex shares to rise. The financial institution’s efforts in enhancing credit score traits, enhancing the deposit combine, and reducing deposit prices had been notably famous. Trying forward, 2025 is anticipated to be a transitional yr for Veritex’s steadiness sheet, however the financial institution is anticipated to return to development and elevated profitability in 2026.
As well as, the potential for mergers and acquisitions was highlighted as an element that would present additional upside for Veritex. The financial institution’s strategic positioning inside the Houston and Dallas-Fort Price metropolitan areas was seen as a aggressive benefit in mild of anticipated mergers and acquisitions exercise inside the banking business.
InvestingPro Insights
The latest sale by John Sughrue comes at a time when Veritex Holdings (NASDAQ:VBTX) is experiencing important market momentum. In response to InvestingPro information, the corporate’s inventory has proven exceptional efficiency, with a 76.35% worth whole return over the previous yr and a 49.79% return within the final six months. This sturdy efficiency is additional highlighted by the inventory buying and selling close to its 52-week excessive, at 98.35% of that peak.
Regardless of the director’s sale, Veritex Holdings maintains a strong monetary place. The corporate boasts a market capitalization of $1.65 billion and a P/E ratio of 19.26, suggesting an inexpensive valuation relative to its earnings. Moreover, with a dividend yield of two.64%, VBTX gives a horny revenue proposition for traders.
InvestingPro Suggestions point out that whereas Veritex Holdings has a excessive shareholder yield and is predicted to be worthwhile this yr, it additionally faces challenges. The corporate suffers from weak gross revenue margins, and 4 analysts have revised their earnings downwards for the upcoming interval. These insights, together with 7 extra suggestions out there on InvestingPro, present a complete view of the corporate’s prospects.
Buyers contemplating Veritex Holdings ought to weigh these elements fastidiously. The corporate’s sturdy latest efficiency and profitability are encouraging indicators, however the director’s sale and analyst downgrades counsel warning could also be warranted. For a extra in-depth evaluation, InvestingPro gives extra suggestions and metrics to assist inform funding choices.
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