Cibc World Market Inc. Acquires New Position in VersaBank $VBNK

Key Points

• CIBC World Market Inc. acquired 1,151,992 VersaBank shares in the second quarter, valued at approximately $26.8 million and representing a 3.56% stake. Institutional investors collectively own 56.86% of the bank.
• Analyst sentiment is mixed: Roth Capital upgraded VersaBank to “buy” with a $25 target, while Zacks Research and Weiss Ratings maintained “hold” views. The overall consensus rating is “Hold,” with a $25 average price target.
• VersaBank recently exceeded quarterly earnings and revenue expectations, reporting $0.28 EPS and $28.17 million in revenue. Shares opened at $19.82, while the bank maintains a quarterly dividend of $0.025 per share, or a 0.5% annualized yield.

Cibc World Market Inc. acquired a new position in shares of VersaBank (NASDAQ:VBNK - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 1,151,992 shares of the company's stock, valued at approximately $26,781,000. Cibc World Market Inc. owned about 3.56% of VersaBank at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the company. Salzhauer Michael boosted its holdings in VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company's stock valued at $192,000 after purchasing an additional 6,843 shares during the last quarter. Citadel Advisors LLC acquired a new stake in shares of VersaBank during the 3rd quarter worth approximately $198,000. Quadrature Capital Ltd acquired a new stake in shares of VersaBank during the 4th quarter worth approximately $201,000. First Trust Advisors LP raised 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 valued at $237,000 after buying an additional 5,144 shares during the period. Finally, K2 Principal Fund L.P. purchased a new stake in shares of VersaBank during the 2nd quarter valued at approximately $239,000. 56.86% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Zacks Research cut VersaBank from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 18th. Roth Capital raised VersaBank from a "neutral" rating to a "buy" rating and raised their target price for the stock from $20.00 to $25.00 in a research note on Tuesday, June 30th. Finally, Weiss Ratings downgraded VersaBank from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, June 9th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $25.00.

VersaBank Stock Performance

Shares of VBNK stock opened at $19.82 on Monday. The stock has a market capitalization of $640.78 million, a P/E ratio of 28.72 and a beta of 1.06. The company has a 50 day moving average price of $20.26 and a 200 day moving average price of $17.88. VersaBank has a fifty-two week low of $10.61 and a fifty-two week high of $25.05.

VersaBank (NASDAQ:VBNK - Get Free Report) last announced its earnings results on Wednesday, June 3rd. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.02. VersaBank had a net margin of 9.34% and a return on equity of 8.32%. The firm had revenue of $28.17 million for the quarter, compared to the consensus estimate of $26.86 million. On average, research analysts forecast that VersaBank will post 1.3 EPS for the current fiscal year.

VersaBank Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Friday, July 10th were given a dividend of $0.025 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.5%. VersaBank's dividend payout ratio is currently 10.14%.

VersaBank Profile

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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