Connor Clark & Lunn Investment Management Ltd. Invests $16.36 Million in VersaBank $VBNK

Key Points

• Connor Clark & Lunn Investment Management acquired 703,971 VersaBank shares worth approximately $16.36 million, representing a 2.18% stake. Institutional investors collectively own 56.86% of the bank.
• VersaBank exceeded quarterly expectations, reporting EPS of $0.28 versus the $0.26 consensus and revenue of $28.17 million versus $26.86 million expected. The bank also pays a quarterly dividend of $0.025 per share, yielding 0.5% annually.
• Analyst sentiment is mixed, with a consensus “Hold” rating and a $25 average price target. Shares opened at $19.61, while Roth Capital upgraded the stock to “Buy” and raised its target to $25.

Connor Clark & Lunn Investment Management Ltd. bought a new stake in VersaBank (NASDAQ:VBNK - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 703,971 shares of the company's stock, valued at approximately $16,364,000. Connor Clark & Lunn Investment Management Ltd. owned 2.18% of VersaBank as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also made changes to their positions in the company. First Trust Advisors LP increased its stake in VersaBank by 33.0% during the second quarter. First Trust Advisors LP now owns 20,753 shares of the company's stock valued at $237,000 after acquiring an additional 5,144 shares during the period. Salzhauer Michael lifted its position in shares of VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company's stock worth $192,000 after acquiring an additional 6,843 shares during the period. K2 Principal Fund L.P. bought a new stake in shares of VersaBank in the 2nd quarter worth approximately $239,000. BlackRock Inc. acquired a new stake in shares of VersaBank during the 2nd quarter worth approximately $274,000. Finally, Quadrature Capital Ltd acquired a new stake in shares of VersaBank during the 4th quarter worth approximately $201,000. Institutional investors own 56.86% of the company's stock.

VersaBank Trading Up 0.8%

NASDAQ VBNK opened at $19.61 on Wednesday. The stock's 50 day moving average is $20.25 and its two-hundred day moving average is $17.93. The company has a market capitalization of $633.99 million, a price-to-earnings ratio of 28.42 and a beta of 1.06. VersaBank has a 1-year low of $10.62 and a 1-year high of $25.05.

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

VersaBank Announces Dividend

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

Analysts Set New Price Targets

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

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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