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Univest Corporation Of Pennsylvania (UVSP)
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Univest Of Pennsylvania (UVSP) AI Stock Analysis

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UVSP

Univest Of Pennsylvania

(NASDAQ:UVSP)

Rating:62Neutral
Price Target:
$31.00
â–²(4.69%Upside)
Univest of Pennsylvania's overall stock score reflects strong financial performance and strategic growth potential. However, the technical analysis suggests bearish market sentiment, and valuation metrics indicate moderate attractiveness. Earnings call concerns and corporate event positivity balance the outlook.

Univest Of Pennsylvania (UVSP) vs. SPDR S&P 500 ETF (SPY)

Univest Of Pennsylvania Business Overview & Revenue Model

Company DescriptionUnivest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment provides a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. The Wealth Management segment offers investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment provides commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington, and Cape May counties in New Jersey through 37 banking offices. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.
How the Company Makes MoneyUnivest Financial Corporation generates revenue through a diversified financial services model. Its primary revenue streams include interest income from loans and investment securities, as well as non-interest income from fees and commissions related to wealth management, trust services, and insurance operations. The company benefits from a robust loan portfolio, which encompasses commercial, residential, and consumer loans. Additionally, Univest enhances its earnings through strategic partnerships and acquisitions that expand its service offerings and client base, while maintaining a strong focus on community banking principles to foster customer loyalty and retention.

Univest Of Pennsylvania Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -6.18%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive developments in net interest margin and noninterest income growth, challenges such as contraction in loan outstandings, deposit decreases, and significant net charge-offs posed concerns. The sentiment is balanced with both positive and negative aspects.
Q2-2025 Updates
Positive Updates
Increase in Net Interest Margin
Reported NIM increased to 3.2%, rising by 11 basis points from the previous quarter due to increased yields on assets and a reduction in the cost of funds. Core NIM expanded by 12 basis points to 3.24%.
Growth in Noninterest Income
Noninterest income increased by $521,000 or 2.5% compared to the second quarter of 2024, driven by increases in investment management fees, gains on sale of SBA loans, and treasury management fees.
Solid Loan Production
Year-to-date commercial loan production through June 30 was $507 million compared to $402 million in the prior year, indicating a strong demand for loans.
Guidance for Net Interest Income Growth
For the full year, Univest expects net interest income growth of 10% to 12% compared to 2024.
Negative Updates
Contraction in Loan Outstandings
Loan outstandings contracted by $31.9 million during the quarter and year-to-date contraction was $25.4 million, compared to a growth of $117.6 million in the prior year.
Decrease in Deposits
Deposits decreased by $75.8 million during the quarter, primarily due to the seasonal decline of public funds deposits and a decline in broker deposits.
Significant Net Charge-offs
Recorded $7.8 million of net charge-offs predominantly related to one credit, which accounted for $7.3 million of the charge-offs, with the remaining balance placed on nonaccrual due to suspected fraud.
Increase in Noninterest Expense
Noninterest expense increased by $1.6 million or 3.3% compared to the second quarter of 2024, primarily driven by compensation costs, including annual merit increases and medical costs.
Company Guidance
During the second quarter of 2025, Univest Financial Corporation reported net income of $20 million or $0.69 per share. Despite a contraction in loan outstandings of $31.9 million during the quarter, year-to-date commercial loan production reached $507 million, surpassing the previous year's $402 million. Deposits experienced a $75.8 million decline, attributed mainly to seasonal drops in public funds and broker deposits, though an increase of $77.5 million was noted when excluding these declines. Net charge-offs amounted to $7.8 million, largely due to a single credit relationship. The net interest margin (NIM) increased to 3.2% from 3.09% in the previous quarter, and core NIM, excluding excess liquidity impact, rose by 12 basis points. Noninterest income grew by 2.5% compared to the second quarter of 2024, while noninterest expenses increased by 3.3%, driven by compensation costs. Univest's guidance for 2025 projects loan growth of 1% to 3% and net interest income growth of 10% to 12% compared to 2024. Noninterest income is expected to grow by 1% to 3%, and noninterest expenses are projected to increase by 2% to 4%. The provision for credit loss guidance remains at $12 million to $14 million, with income tax guidance unchanged at 20% to 20.5%. The overall guidance updates are expected to be accretive to both EPS and PPNR.

Univest Of Pennsylvania Financial Statement Overview

Summary
Univest of Pennsylvania exhibits strong revenue growth, robust profit margins, and effective cash flow conversion. However, it faces challenges with operating margin volatility and increasing liabilities, which need to be addressed for sustained financial health.
Income Statement
75
Positive
Univest of Pennsylvania shows a strong revenue growth trajectory with a significant increase from 2023 to TTM 2025. Gross and net profit margins are robust, indicating efficiency in operations and cost management. However, fluctuating EBIT and EBITDA margins suggest some volatility in operating performance.
Balance Sheet
70
Positive
The company maintains a healthy equity base with a moderate debt-to-equity ratio, indicating a relatively stable financial structure. The equity ratio is consistent, suggesting prudent asset management, but a slight increase in liabilities could pose future risks.
Cash Flow
68
Positive
Operating cash flow is consistently positive, supporting net income effectively. However, the free cash flow growth rate is inconsistent, reflecting potential volatility in cash management. The cash flow to net income ratios are favorable, indicating good cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue349.91M299.23M286.05M296.18M271.61M252.69M
Gross Profit403.40M299.23M286.05M296.18M271.61M252.69M
EBITDA48.50M0.001.35M-2.28M119.97M-2.23M
Net Income78.02M75.93M71.10M78.12M91.80M46.92M
Balance Sheet
Total Assets7.80B8.13B7.78B7.22B7.12B6.34B
Cash, Cash Equivalents and Short-Term Investments-72.81M210.11M249.80M503.06M1.21B438.50M
Total Debt499.92M405.75M493.61M473.55M227.33M331.20M
Total Liabilities6.96B7.24B6.94B6.45B6.35B5.64B
Stockholders Equity839.21M887.30M839.21M776.50M773.79M692.47M
Cash Flow
Free Cash Flow82.84M72.00M83.02M104.23M96.46M47.43M
Operating Cash Flow78.67M75.11M89.74M109.45M102.34M51.18M
Investing Cash Flow-261.52M-259.74M-454.44M-897.61M-126.78M-867.39M
Financing Cash Flow136.74M263.68M461.69M50.81M694.73M910.94M

Univest Of Pennsylvania Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.61
Price Trends
50DMA
30.42
Negative
100DMA
29.37
Positive
200DMA
29.45
Negative
Market Momentum
MACD
0.08
Positive
RSI
37.30
Neutral
STOCH
17.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVSP, the sentiment is Negative. The current price of 29.61 is below the 20-day moving average (MA) of 31.44, below the 50-day MA of 30.42, and above the 200-day MA of 29.45, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UVSP.

Univest Of Pennsylvania Risk Analysis

Univest Of Pennsylvania disclosed 40 risk factors in its most recent earnings report. Univest Of Pennsylvania reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Univest Of Pennsylvania Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$951.64M18.5014.19%3.44%181.68%28.82%
76
Outperform
$933.29M9.9414.78%1.73%6.94%3.96%
76
Outperform
$926.36M10.6410.65%4.78%3.54%4.48%
75
Outperform
$933.65M11.569.87%2.47%5.18%13.05%
72
Outperform
$792.95M16.835.69%4.01%6.92%13.94%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
62
Neutral
$855.14M10.819.02%2.89%5.97%12.97%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UVSP
Univest Of Pennsylvania
29.38
1.86
6.76%
HFWA
Heritage Financial
23.44
1.77
8.17%
SBSI
Southside Bancshares
30.10
-3.01
-9.09%
FMBH
First Mid-Illinois Bancshares
38.78
1.40
3.75%
AMAL
Amalgamated Bank
30.06
-1.56
-4.93%
BHRB
Burke & Herbert Bank & Company
62.85
-2.81
-4.28%

Univest Of Pennsylvania Corporate Events

Stock BuybackDividendsFinancial Disclosures
Univest Financial Reports Q2 Earnings Increase
Neutral
Jul 24, 2025

On July 23, 2025, Univest Financial Corporation announced its second-quarter results, reporting a net income of $20.0 million, an increase from the previous year’s $18.1 million. Despite a decrease in gross loans and deposits, the company saw an increase in net interest income and margin due to higher loan balances and yields on interest-earning assets. Noninterest income also rose, driven by gains on Small Business Administration loans and increased service charges. However, the company faced challenges with a significant charge-off due to a commercial loan placed on nonaccrual status. Univest declared a quarterly cash dividend and continued its share repurchase plan.

The most recent analyst rating on (UVSP) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Univest Of Pennsylvania stock, see the UVSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Univest Of Pennsylvania Shares Strategic Growth Plans
Positive
Jun 12, 2025

On June 12, 2025, Univest Financial Corporation distributed a slide presentation to analysts and investors detailing its operating and growth strategies, as well as financial performance. The presentation highlighted the company’s strategic focus on maintaining strong financial health and leveraging its market position as a leading diversified financial institution in Pennsylvania. This move is expected to reinforce Univest’s commitment to transparency and strategic growth, potentially impacting its stakeholders positively by outlining clear future directions and financial stability.

The most recent analyst rating on (UVSP) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Univest Of Pennsylvania stock, see the UVSP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025