VersaBank (NASDAQ:VBNK) Posts Earnings Results, Misses Estimates By $0.12 EPS

Key Points

• VersaBank reported quarterly EPS of $0.22, missing analysts’ consensus estimate of $0.34 by $0.12. The bank posted an 8.32% return on equity and a 9.34% net margin.
• Shares opened at $19.28, with a market capitalization of approximately $623 million and a one-year trading range of $11.00 to $25.05.
• Analyst sentiment remains mixed, resulting in a consensus “Hold” rating and an average price target of $25.00; institutional investors own 56.86% of the stock.

VersaBank (NASDAQ:VBNK - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.34 by ($0.12), Zacks reports. VersaBank had a return on equity of 8.32% and a net margin of 9.34%.

VersaBank Price Performance

NASDAQ VBNK opened at $19.28 on Thursday. The business has a 50 day simple moving average of $20.31 and a 200 day simple moving average of $18.07. VersaBank has a one year low of $11.00 and a one year high of $25.05. The stock has a market capitalization of $623.26 million, a P/E ratio of 27.94 and a beta of 1.06.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on VBNK shares. Weiss Ratings lowered shares of VersaBank from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, June 9th. Roth Capital raised shares of VersaBank from a "neutral" rating to a "buy" rating and upped their price objective for the company from $20.00 to $25.00 in a research note on Tuesday, June 30th. Finally, Zacks Research cut shares of VersaBank from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 18th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $25.00.

Hedge Funds Weigh In On VersaBank

A number of institutional investors and hedge funds have recently modified their holdings of the business. First Trust Advisors LP grew its position in shares of VersaBank by 33.0% during the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company's stock worth $237,000 after buying an additional 5,144 shares during the period. Salzhauer Michael boosted its stake in VersaBank by 68.4% during the second quarter. Salzhauer Michael now owns 16,843 shares of the company's stock worth $192,000 after acquiring an additional 6,843 shares in the last quarter. Quadrature Capital Ltd bought a new position in VersaBank during the fourth quarter worth $201,000. Citadel Advisors LLC acquired a new stake in VersaBank in the third quarter worth $198,000. Finally, Geode Capital Management LLC bought a new stake in VersaBank in the second quarter valued at $293,000. 56.86% of the stock is currently owned by institutional investors.

About VersaBank

VersaBank is a Canadian Schedule I chartered bank that operates as a fully digital institution, offering a range of deposit and lending solutions through its proprietary technology platform. Headquartered in London, Ontario, the bank has chosen to forego a traditional branch network in favor of online and digital distribution, enabling it to serve clients across Canada and the United States with efficiency and lower overhead.

The bank’s primary business activities include the origination and securitization of commercial loans, equipment financing, residential mortgages and construction loans.

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