VersaBank (NASDAQ:VBNK) Sees Large Growth in Short Interest

Key Points

• VersaBank’s short interest rose 47.9% to 333,727 shares as of September 15, representing about 1.1% of shares outstanding and 2.1 days of average trading volume.
• The stock opened at $22.22, near the upper half of its 12-month range, while the company’s latest quarterly results missed expectations with earnings of $0.27 per share versus a $0.34 consensus estimate.
• Analysts maintain a “Moderate Buy” consensus with a $24.00 target price; the bank also declared a quarterly dividend, equivalent to a 0.5% annual yield.

VersaBank (NASDAQ:VBNK - Get Free Report) was the target of a large growth in short interest in September. As of September 15th, there was short interest totaling 333,727 shares, a growth of 47.9% from the August 31st total of 225,630 shares. Approximately 1.1% of the shares of the stock are short sold. Based on an average daily volume of 159,860 shares, the short-interest ratio is currently 2.1 days.

VersaBank Stock Up 0.2%

Shares of VBNK stock opened at $22.22 on Thursday. The business has a 50-day moving average price of $20.76 and a two-hundred day moving average price of $19.00. VersaBank has a 12-month low of $11.25 and a 12-month high of $25.05. The firm has a market cap of $718.37 million, a P/E ratio of 29.24 and a beta of 1.06.

VersaBank (NASDAQ:VBNK - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.07). The firm had revenue of $27.67 million for the quarter, compared to the consensus estimate of $28.76 million. VersaBank had a net margin of 9.92% and a return on equity of 8.66%. As a group, research analysts expect that VersaBank will post 1.19 EPS for the current fiscal year.

VersaBank Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Stockholders of record on Friday, October 9th will be given a C$0.03 dividend. This represents a $0.10 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, October 9th. VersaBank's payout ratio is currently 9.21%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on VBNK shares. Raymond James Financial set a $20.00 target price on VersaBank in a report on Thursday, September 3rd. Zacks Research downgraded VersaBank from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 18th. Roth Capital upped their price objective on shares of VersaBank from $25.00 to $28.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Finally, Weiss Ratings raised shares of VersaBank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, September 18th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $24.00.

Institutional Trading of VersaBank

Institutional investors and hedge funds have recently bought and sold shares of the company. Cibc World Market Inc. purchased a new stake in shares of VersaBank during the second quarter valued at approximately $26,781,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in VersaBank during the 2nd quarter valued at $16,364,000. Wellington Management Group LLP bought a new stake in shares of VersaBank in the 2nd quarter worth $6,171,000. TD Waterhouse Canada Inc. raised its stake in shares of VersaBank by 0.3% in the second quarter. TD Waterhouse Canada Inc. now owns 187,323 shares of the company's stock worth $4,429,000 after purchasing an additional 507 shares during the last quarter. Finally, Renaissance Technologies LLC lifted its holdings in shares of VersaBank by 29.7% during the first quarter. Renaissance Technologies LLC now owns 112,700 shares of the company's stock valued at $1,597,000 after purchasing an additional 25,800 shares in the last quarter. 56.86% of the stock is currently owned by institutional investors.

About VersaBank

VersaBank is a technology-focused bank headquartered in London, Ontario, Canada. The company operates a digital banking model that uses technology to deliver lending and deposit services without relying on a large traditional branch network.

The bank provides commercial lending, residential and consumer financing, and deposit products. Its specialty finance activities include purchasing and funding loan portfolios originated by third-party financial institutions and other businesses, including point-of-sale financing providers.

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