DALLAS - Veritex (NASDAQ:VBTX) Holdings, Inc. (NASDAQ:VBTX), the parent company of Veritex Community Bank, today declared a quarterly cash dividend of $0.20 per share on its common stock. The dividend is scheduled to be paid to shareholders of record as of August 9, 2024, with the payment date set for on or after August 23, 2024.
Veritex Holdings operates as a bank holding company through Veritex Community Bank, which serves the Dallas-Fort Worth metroplex and the Houston metropolitan area. The bank, a Texas state-chartered bank, is regulated by the Texas Department of Banking and the Federal Reserve System.
The announcement of the dividend follows the company's established pattern of returning value to its shareholders and reflects its financial position and policy of distributing profits on a regular basis. Dividend declarations are a common practice among publicly traded companies, serving as a way for them to share profits directly with shareholders.
The forward-looking statements included in the press release indicate that the company has plans and objectives that suggest confidence in its future financial performance. However, as with all forward-looking statements, they are subject to various assumptions, risks, and uncertainties that may cause actual results to differ from projections.
In other recent news, Veritex Holdings has been the focus of several developments. The company reported Q1 2024 earnings of $29.1 million, or $0.53 per share, marking a solid start to the year. In a bid to improve its balance sheet, Veritex has initiated a $50 million stock repurchase program and is taking steps to increase loan loss reserves and reduce concentrations.
Analysts at Piper Sandler have shown confidence in Veritex Holdings by raising the price target on the stock to $26 from $25, while maintaining an Overweight rating. This adjustment comes after a period of recovery for Veritex shares and is indicative of the firm's positive outlook on the stock.
Veritex's efforts to de-risk its balance sheet have resulted in stabilized credit metrics. The bank's asset-sensitive balance sheet is expected to benefit from a reduced likelihood of interest rate cuts. The earnings estimates for 2025 have been revised upwards by 7%, attributed to the removal of several anticipated rate cuts and heightened expectations for loan growth.
InvestingPro Insights
Veritex Holdings, Inc. (NASDAQ:VBTX) continues to show signs of robust financial health, as indicated by their latest dividend declaration. In alignment with their financial results, Veritex boasts a solid market capitalization of approximately $1.33 billion, reflecting its substantial presence in the banking sector. Investors keeping an eye on performance metrics will note that the company's P/E ratio stands at 14.17, suggesting a potentially reasonable valuation relative to earnings.
Despite a downturn in revenue growth over the last twelve months, with a decrease of 10.4%, Veritex has demonstrated strong returns, with a 1-month price total return of 20.46% and a 3-month price total return of 17.07%. This uptrend is particularly noteworthy as the stock is trading near its 52-week high, at 98.23% of the high-water mark. This could indicate investor confidence and a positive market response to the company's overall performance and strategy.
Looking ahead, shareholders can glean insights from InvestingPro Tips, which highlight that analysts predict Veritex will be profitable this year, a sentiment backed by the company's profitability over the last twelve months. However, it's worth noting that four analysts have revised their earnings expectations downwards for the upcoming period, which may warrant attention from investors considering the future earnings potential. Interested investors can find an additional 6 InvestingPro Tips on Veritex by visiting https://www.investing.com/pro/VBTX. To enhance your investment research, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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