VersaBank (NASDAQ:VBNK) Sees Large Volume Increase - Time to Buy?

Key Points

• VersaBank shares rose 2.5% to $23.55 amid unusually strong trading volume, although volume declined 8% from the prior session.
• Analyst sentiment remains favorable, with three Buy ratings and one Hold rating producing a consensus “Moderate Buy” rating and a $24 average price target; Roth Capital raised its target to $28.
• The bank missed quarterly expectations, reporting $0.27 EPS versus $0.34 expected and revenue of $27.67 million versus $28.76 million estimated. VersaBank also declared a C$0.03 quarterly dividend, yielding approximately 0.4%.

Shares of VersaBank (NASDAQ:VBNK - Get Free Report) saw unusually-strong trading volume on Friday. 79,854 shares traded hands during trading, a decline of 8% from the previous session's volume of 86,573 shares. The stock last traded at $23.55 and had previously closed at $23.31.

Analyst Upgrades and Downgrades

VBNK has been the subject of several recent analyst reports. Zacks Research cut shares of VersaBank from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 18th. Raymond James Financial set a $20.00 price target on shares of VersaBank in a report on Thursday, September 3rd. Weiss Ratings upgraded shares of VersaBank from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, September 18th. Finally, Roth Capital increased their price objective on VersaBank from $25.00 to $28.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $24.00.

VersaBank Stock Up 2.5%

The company's 50-day moving average is $20.61 and its two-hundred day moving average is $18.77. The company has a market capitalization of $772.53 million, a P/E ratio of 31.52 and a beta of 1.06.

VersaBank (NASDAQ:VBNK - Get Free Report) last announced its earnings results on Thursday, September 3rd. The company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.07). VersaBank had a net margin of 9.92% and a return on equity of 8.66%. The company had revenue of $27.67 million for the quarter, compared to the consensus estimate of $28.76 million. On average, sell-side analysts predict that VersaBank will post 1.19 EPS for the current year.

VersaBank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Saturday, October 31st. Stockholders of record on Friday, October 9th will be issued a dividend of C$0.03 per share. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, October 9th. VersaBank's payout ratio is currently 9.21%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VBNK. K2 Principal Fund L.P. purchased a new stake in VersaBank during the second quarter valued at about $239,000. BlackRock Inc. bought a new position in shares of VersaBank during the 2nd quarter valued at about $274,000. Sei Investments Co. raised its holdings in shares of VersaBank by 100.0% during the 1st quarter. Sei Investments Co. now owns 36,578 shares of the company's stock valued at $518,000 after buying an additional 18,289 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of VersaBank during the 2nd quarter valued at about $1,133,000. Finally, Brasada Capital Management LP bought a new stake in VersaBank in the 2nd quarter worth approximately $1,606,000. 56.86% of the stock is currently owned by hedge funds and other 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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