VersaBank (NASDAQ:VBNK) Short Interest Up 19,080.0% in July

Key Points

• Short interest in VersaBank surged by 19,080% in July, reaching a total of 95,900 shares compared to just 500 shares at the end of June, reflecting growing investor skepticism.
• VersaBank reported $0.18 earnings per share for the last quarter, missing expectations by $0.03, though its revenue exceeded projections at $21.87 million.
• The company declared a quarterly dividend of $0.025 per share, representing a 0.9% yield, with a low dividend payout ratio of 8.86%.

VersaBank (NASDAQ:VBNK - Get Free Report) was the target of a significant increase in short interest in July. As of July 15th, there was short interest totaling 95,900 shares, anincreaseof19,080.0% from the June 30th total of 500 shares. Approximately0.5% of the shares of the company are sold short. Based on an average daily trading volume, of 53,800 shares, the days-to-cover ratio is currently 1.8 days. Based on an average daily trading volume, of 53,800 shares, the days-to-cover ratio is currently 1.8 days. Approximately0.5% of the shares of the company are sold short.

Analysts Set New Price Targets

Separately, Raymond James Financial reiterated an "outperform" rating and set a $13.00 target price (down previously from $15.00) on shares of VersaBank in a research report on Thursday, June 5th.

VersaBank Trading Up 1.4%

Shares of VBNK stock traded up $0.15 on Tuesday, reaching $11.17. 11,532 shares of the company's stock were exchanged, compared to its average volume of 75,833. VersaBank has a 52 week low of $8.51 and a 52 week high of $18.38. The stock has a market capitalization of $360.12 million, a PE ratio of 14.14 and a beta of 0.96. The company's fifty day simple moving average is $11.44 and its 200 day simple moving average is $11.50.

VersaBank (NASDAQ:VBNK - Get Free Report) last released its quarterly earnings data on Wednesday, June 4th. The company reported $0.18 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.03). VersaBank had a return on equity of 7.97% and a net margin of 10.70%. The firm had revenue of $21.87 million for the quarter, compared to analysts' expectations of $20.77 million. As a group, sell-side analysts predict that VersaBank will post 1.46 earnings per share for the current fiscal year.

VersaBank Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Friday, July 4th were issued a $0.025 dividend. The ex-dividend date was Thursday, July 3rd. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.9%. VersaBank's dividend payout ratio (DPR) is currently 8.86%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in VBNK. Alliancebernstein L.P. grew its stake in VersaBank by 73.2% during the 4th quarter. Alliancebernstein L.P. now owns 2,708,715 shares of the company's stock worth $37,516,000 after buying an additional 1,144,620 shares during the last quarter. Rhino Investment Partners Inc purchased a new position in VersaBank during the 4th quarter worth $12,389,000. Wellington Management Group LLP purchased a new position in VersaBank during the 4th quarter worth $5,886,000. Kennedy Capital Management LLC acquired a new stake in VersaBank during the 4th quarter worth about $5,235,000. Finally, Mendon Capital Advisors Corp lifted its position in VersaBank by 65.6% during the 4th quarter. Mendon Capital Advisors Corp now owns 887,253 shares of the company's stock worth $12,288,000 after acquiring an additional 351,511 shares during the period. 56.86% of the stock is currently owned by hedge funds and other institutional investors.

VersaBank Company Profile

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages.