VersaBank (NASDAQ:VBNK) Stock Price Up 4.7% - What's Next?

Key Points

• VersaBank shares rose 4.7% to $23.08 in mid-day trading, despite volume falling 47% below the average session level.
• Analyst sentiment remains positive overall, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and a $24.00 average price target; Roth Capital recently raised its target to $28.00.
• The bank’s latest quarterly results fell short of expectations, with EPS of $0.27 versus $0.34 forecast and revenue of $27.67 million versus $28.76 million expected. Institutional investors own 56.86% of the company, while VersaBank announced a quarterly C$0.03 dividend yielding about 0.4%.

Shares of VersaBank (NASDAQ:VBNK - Get Free Report) shot up 4.7% during mid-day trading on Monday. The company traded as high as $22.88 and last traded at $23.08. Approximately 48,355 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 90,893 shares. The stock had previously closed at $22.04.

Analyst Ratings Changes

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

VersaBank Price Performance

The stock's 50 day simple moving average is $21.12 and its two-hundred day simple moving average is $19.42. The company has a market capitalization of $749.15 million, a P/E ratio of 30.35 and a beta of 1.04.

VersaBank (NASDAQ:VBNK - Get Free Report) last posted its quarterly 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 firm had revenue of $27.67 million during the quarter, compared to the consensus estimate of $28.76 million. As a group, equities research analysts expect that VersaBank will post 1.19 earnings per share for the current year.

VersaBank Dividend Announcement

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP bought a new position in VersaBank during the second quarter worth about $6,171,000. Brasada Capital Management LP acquired a new stake in shares of VersaBank in the second quarter valued at approximately $1,606,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of VersaBank during the 2nd quarter worth approximately $16,364,000. Bank of America Corp DE acquired a new position in shares of VersaBank during the 2nd quarter worth approximately $1,133,000. Finally, Cibc World Market Inc. bought a new stake in VersaBank in the 2nd quarter valued at $26,781,000. Institutional investors and hedge funds own 56.86% of the company's stock.

VersaBank Company Profile

VersaBank is a digital-first, Schedule I chartered bank headquartered in London, Ontario, Canada. The bank operates primarily through electronic channels rather than a traditional branch network and gathers deposits through financial intermediaries, including deposit brokers and other financial institutions.

The company provides commercial lending and deposit products to businesses, financial intermediaries and specialty finance companies. Its lending activities include point-of-sale financing, commercial real estate and other asset-backed loans, as well as financing for public-sector and municipal projects.

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