SG Americas Securities LLC Acquires Shares in Veritex Holdings, Inc.

SG Americas Securities LLC has made a notable investment by acquiring a new stake in Veritex Holdings, Inc. (NASDAQ:VBTX) during the third quarter, as reported by Holdings Channel. They purchased 36,046 shares of the financial services provider, which amounts to an investment of approximately $949,000.

Moreover, several other institutional investors have also recently engaged in trading activities involving VBTX shares. For instance, Wellington Management Group LLP enhanced its holdings in Veritex by 10.1% during the fourth quarter. Following this increase, Wellington now possesses a total of 547,221 shares valued at approximately $12.73 million after acquiring an additional 50,406 shares in the recent quarter.

Additionally, Vanguard Group Inc. boosted its position in Veritex by 1.4% during the same period. Vanguard now holds 3,772,114 shares worth about $87.78 million after purchasing 52,933 additional shares. Similarly, Principal Financial Group Inc. raised its holdings by 11.7% during the first quarter and now owns 316,050 shares valued at $6.48 million after buying another 33,166 shares.

BNP Paribas Financial Markets also increased its stake in Veritex by 38.7% during the first quarter, now owning 53,362 shares worth around $1.09 million after an additional purchase of 14,884 shares. Finally, Capstone Investment Advisors LLC entered a new position in Veritex valued at approximately $332,000 during the first quarter. In summary, institutional investors collectively own 88.31% of Veritex's stock.

Analyst Insights

Veritex Holdings, Inc. has also drawn interest from analysts, with several issuing reports on the company. DA Davidson reaffirmed a “buy” rating and set a price target of $29.00 for the shares in a report released on August 28. Piper Sandler increased its target price from $26.00 to $27.00 while giving an “overweight” rating in a research note issued on July 25. Moreover, Stephens raised their price target on Veritex shares from $24.00 to $27.00, assigning an “equal weight” rating in a similar report on July 25. Additionally, Raymond James upgraded Veritex from a “market perform” rating to a “strong-buy” rating, targeting a price of $30.00 in their September 17 report. Currently, the stock holds a consensus rating of “Moderate Buy” with an average target price of $28.00, based on data from MarketBeat.

Recent Trading Performance

On Friday, NASDAQ VBTX traded at $25.98, reflecting a 2.6% increase. The stock's performance can also be evaluated through its fifty-day simple moving average, which stands at $24.26, while the 200-day simple moving average is at $22.08. With a market capitalization of $1.41 billion, the company has a price-to-earnings (P/E) ratio of 16.24 and a beta of 1.37. The stock's 52-week trading range extends from a low of $15.93 to a high of $26.72. Financial indicators such as the current ratio and the quick ratio both sit at 0.95, and the debt-to-equity ratio is 0.15.

Veritex Holdings reported its quarterly earnings on July 23, revealing earnings per share (EPS) of $0.52, slightly below analysts' expectations of $0.53. The company registered a net margin of 11.52% and a return on equity of 7.97%. Revenue for the quarter was reported at $106.81 million, falling short of the anticipated $108.39 million, which also marked a 6.7% decrease compared to the same quarter the previous year. Analysts predict that Veritex will achieve an EPS of 2.13 for the current fiscal year.

Dividend Announcement

In addition to the above updates, Veritex Holdings recently announced a quarterly dividend of $0.20 per share, paid on August 23. This dividend was made available to shareholders of record as of August 9. The annualized dividend now totals $0.80, offering a yield of 3.08%, with a current payout ratio standing at 50.00%.

About Veritex Holdings

Veritex Holdings, Inc. is the parent company of Veritex Community Bank, which provides a variety of commercial banking services. Its offerings cater to small and medium-sized enterprises, as well as professionals. The bank's services include several deposit products such as demand accounts, savings accounts, money market accounts, and time deposit accounts. Furthermore, Veritex provides diverse loan products, including loans for commercial real estate, general commercial loans, mortgage warehouse loans, residential real estate loans, construction and land loans, farmland loans, and financing options for consumer loans and purchased receivables.

Investment, Shares, Acquisition