Now trading at a price of $8.16, Valley National Bancorp has moved -4.8% so far today.
Valley National Bancorp shares moved -30.6% over the last 52 weeks, with a high of $13.07 and a low of $7.91. During this time, the stock lagged the S&P 500 index by -25.0%. As of January 2022, the company's 50-day average price is $9.92. Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. The mid-cap Finance company has 3,826 full time employees and is based in New York, NY. Valley National Bancorp has returned a 5.1% dividend yield over the last 12 months.
Snapshot of the Company's Consistent Net Margins in Line With the Banking Industry Average:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,113 | $1,301 | $1,365 | $1,862 |
| Revenue Growth | n/a | 16.96% | 4.91% | 36.39% |
| Net Margins | 27.84% | 30.02% | 34.71% | 30.55% |
| Net Margins Growth | n/a | 7.83% | 15.62% | -11.99% |
| Earnings Per Share | $0.87 | $0.93 | $1.12 | $1.17 |
| EPS Growth | n/a | 6.9% | 20.43% | 4.46% |
| Diluted Shares (MM) | 340 | 405 | 410 | 508 |
| Free Cash Flow (MM) | $1,464 | $152 | $837 | $1,428 |
| FCF Growth | n/a | -89.65% | 452.48% | 70.64% |
| Net Debt / EBITDA | 2.07 | 1.3 | 0.05 | 0.32 |
Valley National Bancorp Shares Are Inexpensive:
Compared to the Finance sector's average of 14.34, Valley National Bancorp has a trailing twelve month P/E ratio of 7.0 and, according to its EPS guidance of 1.35, an expected P/E ratio of 6.0. Valley National Bancorp's PEG ratio is 0.92 based on its 9.2% compound average growth rate of historical and projected earnings per share. This indicates that the company's shares are undervalued.
Furthermore, Valley National Bancorp is likely undervalued in terms of its equity because its P/B ratio is 0.7 compared to its sector average of 1.57. The company's shares are currently trading -51.3% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.02 * 12.226) = $16.75
Valley National Bancorp Is the Subject of Mixed Market Indicators:
10 analysts are following Valley National Bancorp and have set target prices ranging from $9.0 to $15.0 per share. On average, they have given the company a rating of buy. At the current price of $8.16, VLY is trading -32.53% away from its average analyst target price of $12.1 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 6.2% of the company's shares are tied to short positions. Institutions own 73.8% of Valley National Bancorp's shares, while the insider ownership rate stands at 1.42%. The biggest shareholder is Blackrock Inc. with a 19% stake in the company worth approximately $508,166,764.
