Fintel reports that on September 27, 2023, Morgan Stanley downgraded their outlook for Valley National Bancorp (NASDAQ:VLY) from Equal-Weight to Underweight.

Analyst Price Forecast Suggests 32.31% Upside

As of August 31, 2023, the average one-year price target for Valley National Bancorp is 11.22. The forecasts range from a low of 8.08 to a high of $12.60. The average price target represents an increase of 32.31% from its latest reported closing price of 8.48.

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The projected annual revenue for Valley National Bancorp is 2,227MM, an increase of 13.99%. The projected annual non-GAAP EPS is 1.51.

Valley National Bancorp Declares $0.11 Dividend

On August 14, 2023 the company declared a regular quarterly dividend of $0.11 per share ($0.44 annualized). Shareholders of record as of September 14, 2023 will receive the payment on October 2, 2023. Previously, the company paid $0.11 per share.

At the current share price of $8.48 / share, the stock’s dividend yield is 5.19%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.24%, the lowest has been 3.00%, and the highest has been 6.91%. The standard deviation of yields is 0.92 (n=236).

The current dividend yield is 1.03 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.35. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 701 funds or institutions reporting positions in Valley National Bancorp. This is a decrease of 9 owner(s) or 1.27% in the last quarter. Average portfolio weight of all funds dedicated to VLY is 0.14%, a decrease of 7.05%. Total shares owned by institutions increased in the last three months by 2.48% to 376,379K shares. The put/call ratio of VLY is 2.93, indicating a bearish outlook.

What are Other Shareholders Doing?

Macquarie Group holds 19,364K shares representing 3.81% ownership of the company. In it’s prior filing, the firm reported owning 18,703K shares, representing an increase of 3.41%. The firm decreased its portfolio allocation in VLY by 10.21% over the last quarter.

Fuller & Thaler Asset Management holds 17,357K shares representing 3.42% ownership of the company. In it’s prior filing, the firm reported owning 13,839K shares, representing an increase of 20.27%. The firm increased its portfolio allocation in VLY by 3.64% over the last quarter.

UBVLX – Undiscovered Managers Behavioral Value Fund Class L holds 14,292K shares representing 2.82% ownership of the company. In it’s prior filing, the firm reported owning 11,302K shares, representing an increase of 20.92%. The firm increased its portfolio allocation in VLY by 7.04% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 13,402K shares representing 2.64% ownership of the company. In it’s prior filing, the firm reported owning 13,256K shares, representing an increase of 1.09%. The firm decreased its portfolio allocation in VLY by 21.76% over the last quarter.

IJH – iShares Core S&P Mid-Cap ETF holds 12,787K shares representing 2.52% ownership of the company. In it’s prior filing, the firm reported owning 12,966K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in VLY by 20.77% over the last quarter.

Valley National Bancorp Background Information
(This description is provided by the company.)

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $41 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations across New Jersey, New York, Florida and Alabama, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy.

This article originally appeared on Fintel

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