Valley National Bancorp (VLY) AI Stock Analysis

Valley National Bancorp serves as the holding company for Valley National Bank, offering financial services across commercial, retail, insurance, and wealth management sectors. Established in 1927 and based in New York, the company operates across Commercial Lending, Consumer Lending, and Investment Management segments. Its offerings include non-interest bearing, savings, NOW, money market, and time deposits, alongside commercial and industrial loans, residential mortgages, and home equity lines of credit. It also conducts investment activities, international banking such as letters of credit and foreign exchange, insurance services, and investment management solutions. As of December 31, 2021, it maintained 232 branch offices across New Jersey, New York, Florida, and Alabama.

Between FY2020 and FY2025, Valley National Bancorp produced a revenue compound annual growth rate of 17.4%. Total revenue reached $3.49B in FY2025, contracting 2.2% following $3.57B in FY2024. Operating margins stood at 21.3% in FY2025 with net income of $598.0M and EPS of $1.00, compared to net income of $380.3M and EPS of $0.63 in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 15.0% year-over-year while quarterly earnings expanded 31.8% year-over-year. Over the trailing twelve months, revenue totaled $2.01B, operating margin reached 46.8%, and EPS stood at $1.18.

As of June 30, 2026, Valley National Bancorp reported cash and short-term investments of $9.13B against total debt of $3.45B, resulting in a net cash position of $5.68B. Shareholders' equity was $7.92B, total assets reached $66.32B, the debt-to-equity ratio was 0.44, and the current ratio sat at 0.17. In FY2025, operating cash flow and free cash flow were both $343.8M. Capital returns in FY2025 included $277.9M in dividends paid and $72.8M used for share buybacks.

VLY trades at a trailing price-to-earnings ratio of 10.7x and a forward P/E of 8.4x, both lower than the median of its US-listed Financial Services peers at 12.1x trailing and 10.8x forward. Its price-to-sales ratio of 3.5x compares to the peer median of 3.2x, while its price-to-book ratio is 0.9x. At the closing price of $12.66 on October 16, 2026, the stock returned 34.8% over the past year, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, VLY rose 15.5% versus 83.0% for the S&P 500.

Valley National Bancorp delivers an annual forward dividend of $0.44 per share, translating to a dividend yield of 3.48% with a payout ratio of 37.6%. The company distributes dividends quarterly and has paid dividends for 38 consecutive years. Its 5-year annualized dividend growth rate stands at 0.0%, and its most recent ex-dividend date was September 15, 2026.

Wall Street coverage consists of 8 Strong Buy, 3 Buy, and 3 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $16.50, representing a 30.3% upside compared to the last close of $12.66. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.27B and EPS of $1.28, reflecting 29.0% earnings growth. Valley National Bancorp beat earnings estimates in 3 of the last 4 quarters, with its next earnings release scheduled for October 22, 2026.

This page is an AI-written research summary of Valley National Bancorp (VLY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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