Jefferies Upgrades Valley National Bancorp

Jefferies upgraded Valley National Bancorp - Preferred Stock (VLYPN) to Buy on September 24, 2025, setting an average one-year price target of $27.71/share, which implies a 5.83% upside from its current $26.18. This upgrade aligns with a notable increase in institutional interest, as total shares owned by institutions rose by 5.31% to 1,895K shares last quarter, accompanied by a 9.09% increase in the number of reporting funds, signaling positive sentiment despite some varied individual fund adjustments.

Analysis

Valley National Bancorp's preferred stock (VLYPN) has received a bullish catalyst with Jefferies upgrading its rating from Hold to Buy. This outlook is supported by an average one-year price target of $27.71, which represents a 5.83% upside from its last closing price of $26.18. Reinforcing this positive sentiment is a notable increase in institutional interest; the number of funds reporting positions rose by 9.09% in the last quarter, while total shares owned by institutions grew by 5.31% to 1,895K. Furthermore, the average portfolio weight allocated to VLYPN by these funds increased by 5.21%. However, a deeper look at individual shareholder activity reveals a mixed picture. While Virtus InfraCap U.S. Preferred Stock ETF (PFFA) significantly increased its holdings by 7.22%, other major funds like iShares Preferred and Income Securities ETF (PFF) and Invesco Variable Rate Preferred ETF (VRP) reduced their positions by 8.97% and 1.62%, respectively. Invesco Preferred ETF (PGX) also trimmed its share count by 4.85% but curiously increased its portfolio allocation by 1.69%, suggesting a potential rebalancing rather than a purely negative view.

Key Decisions for Investors

• The Jefferies upgrade and positive aggregate institutional inflows, with a 5.31% increase in total shares owned, suggest a favorable entry point for investors seeking income and modest capital appreciation.
• Investors should note the divergent behavior among major preferred stock ETFs, as the significant buying from PFFA is countered by selling from PFF and VRP, indicating a lack of uniform institutional conviction.
• It is prudent to monitor subsequent institutional filings from key holders like PFF and PGX to determine if the recent divergent flows represent short-term rebalancing or a developing trend that could impact VLYPN's price stability.