Veritex announces quarterly dividend of $0.22 per share

DALLAS - Veritex Holdings, Inc. (NASDAQ:VBTX), the parent company of Veritex Community Bank, has declared a quarterly cash dividend of $0.22 per share on its common stock, representing an attractive 3.72% dividend yield. The dividend is scheduled to be paid to shareholders of record as of May 8, 2025, with the payment date on or after May 22, 2025.

Veritex, headquartered in Dallas, Texas, operates as a bank holding company through its subsidiary, Veritex Community Bank. With a market capitalization of $1.2 billion and a P/E ratio of 11.17, the bank serves customers in the Dallas-Fort Worth metroplex and the Houston area and is regulated by the Texas Department of Banking and the Federal Reserve System’s Board of Governors. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value assessment.

The announcement of the dividend is part of the company’s projected financial plans and reflects its commitment to delivering value to its shareholders. While the stock has experienced a 20.11% decline over the past six months, InvestingPro data shows the company remains profitable over the last twelve months with positive earnings forecasts from analysts. However, as with all forward-looking statements, these plans are subject to various assumptions, risks, and uncertainties that may cause actual results to differ from expectations.

This dividend declaration is based on information provided in a press release statement by Veritex Holdings, Inc. It is a common practice for companies to issue dividends to shareholders, and this action by Veritex is consistent with its history of returning value to its investors.

Investors typically view dividend announcements as indicators of a company’s financial health and stability. Regular dividend payments often suggest that a company is generating sufficient earnings and has a positive outlook on its future cash flows.

It is important to note that while the company has announced its intention to pay dividends, future developments could potentially influence the payment of dividends. For deeper insights into Veritex’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports. Veritex has stated that it does not assume any obligation to update or revise forward-looking statements, which means that shareholders should be aware of the inherent uncertainties associated with such statements.

As per the company’s policy, Veritex does not provide further commentary or guidance on its financial strategies beyond its official statements and regulatory filings. The information regarding the dividend is strictly based on the press release issued by Veritex Holdings, Inc.

In other recent news, Veritex Holdings reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.54, which fell short of the expected $0.56. The company’s revenue also missed expectations, coming in at $106.19 million against a forecast of $112.52 million. Despite these challenges, Veritex has extended its stock buyback program through March 2026, allowing for the repurchase of up to $50 million of its common stock. This move reflects the company’s ongoing confidence in its financial strategy.

Raymond James recently downgraded Veritex Holdings from Strong Buy to Outperform, adjusting the price target from $31.00 to $28.00. This downgrade was accompanied by a recognition of the bank’s efforts to improve its balance sheet, despite ongoing challenges. Meanwhile, Veritex continues to focus on strategic initiatives such as government-guaranteed loans and treasury management improvements, aiming for a 1% return on assets in 2025.

Earlier, Raymond James had maintained a Strong Buy rating on Veritex, with a $31.00 price target, citing anticipated share buyback activity. The firm’s analysis suggested that while loan growth may be subdued, Veritex’s management is committed to enhancing the bank’s performance. These developments come amid Veritex’s proactive measures to strengthen its financial position, including reducing its criticized loan ratio and initiating share repurchases.

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