What Happened?
Shares of regional banking company Valley National Bancorp (NASDAQ: VLY) jumped 3.7% in the afternoon session after the company reported strong third-quarter results that beat expectations and received a price target increase from J.P. Morgan.
Valley National Bancorp announced its third-quarter net income was $163.4 million, or $0.28 per share. This figure marked an increase from the $133.2 million, or $0.22 per share, reported in the second quarter of 2025 and also topped the $97.9 million earned in the same period of the previous year. The results surpassed analysts' average estimate of $0.26 per share. Following the positive earnings report, J.P. Morgan maintained its "Overweight" rating on the stock and raised its price target from $13.00 to $14.00, signaling confidence in the bank's performance.
After the initial pop the shares cooled down to $10.98, up 3.9% from previous close.
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What Is The Market Telling Us
Valley National Bank’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 4.1% on the news that investor fears over a potential credit crisis eased, following reassuring commentary from regional banks.
After a volatile previous week sparked by news of stress from some U.S. regional banks, sentiment shifted. These events now appear to be isolated, according to market analysis. The recovery was evident as the KBW Nasdaq Regional Banking Index rose, regaining some of its recent losses. Adding to the positive momentum, several regional bank CEOs reported that their loan portfolios remain broadly healthy. This wave of reassuring news helped calm jitters that had revived memories of the 2023 banking turmoil, leading to a recovery in bank stock prices.
Valley National Bank is up 23% since the beginning of the year, and at $10.98 per share, it is trading close to its 52-week high of $11.10 from September 2025. Investors who bought $1,000 worth of Valley National Bank’s shares 5 years ago would now be looking at an investment worth $1,388.
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