Unity Bancorp, Inc. (NASDAQ:UNTY) Receives Average Rating of "Buy" from Brokerages

Key Points

• Unity Bancorp has a consensus analyst rating of "Buy" from five brokerages, with an average 12-month price target of $64.75.
• The company reported Q1 earnings of $1.40 per share, topping estimates, while revenue of $33.61 million was essentially in line with expectations.
• Unity Bancorp also raised its quarterly dividend to $0.16 per share, bringing the annualized payout to $0.64 and the yield to about 1.2%.

Shares of Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) have earned a consensus recommendation of "Buy" from the five brokerages that are presently covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a buy rating. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $64.75.

Several research firms have commented on UNTY. DA Davidson assumed coverage on shares of Unity Bancorp in a research note on Friday. They set a "buy" rating and a $68.00 price target on the stock. Brean Capital began coverage on shares of Unity Bancorp in a research note on Wednesday, April 22nd. They issued a "buy" rating and a $61.00 price objective for the company. Piper Sandler increased their target price on shares of Unity Bancorp from $64.00 to $65.00 and gave the company an "overweight" rating in a report on Thursday, January 15th. Finally, Weiss Ratings upgraded shares of Unity Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, May 4th.

Unity Bancorp Price Performance

UNTY stock traded down $0.09 during mid-day trading on Friday, hitting $52.48. 7,731 shares of the stock were exchanged, compared to its average volume of 47,999. The business has a fifty day moving average price of $52.42 and a 200 day moving average price of $52.12. Unity Bancorp has a 12 month low of $41.67 and a 12 month high of $57.30. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.17 and a quick ratio of 1.16. The stock has a market capitalization of $526.85 million, a price-to-earnings ratio of 8.83 and a beta of 0.60.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) last announced its quarterly earnings data on Tuesday, April 14th. The financial services provider reported $1.40 earnings per share for the quarter, beating analysts' consensus estimates of $1.37 by $0.03. The company had revenue of $33.61 million for the quarter, compared to analysts' expectations of $33.59 million. Unity Bancorp had a return on equity of 16.06% and a net margin of 31.33%. On average, sell-side analysts anticipate that Unity Bancorp will post 5.79 EPS for the current year.

Unity Bancorp Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were issued a dividend of $0.16 per share. The ex-dividend date was Friday, March 6th. This represents a $0.64 annualized dividend and a yield of 1.2%. This is a boost from Unity Bancorp's previous quarterly dividend of $0.15. Unity Bancorp's dividend payout ratio (DPR) is currently 10.77%.

Insider Buying and Selling

In other Unity Bancorp news, CEO James A. Hughes sold 1,500 shares of Unity Bancorp stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $54.50, for a total value of $81,750.00. Following the transaction, the chief executive officer directly owned 173,013 shares of the company's stock, valued at $9,429,208.50. The trade was a 0.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mary E. Gross sold 2,075 shares of the business's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $56.01, for a total value of $116,220.75. Following the completion of the sale, the director owned 18,479 shares of the company's stock, valued at $1,035,008.79. The trade was a 10.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,388 shares of company stock worth $933,404 in the last ninety days. 28.87% of the stock is owned by insiders.

Institutional Investors Weigh In On Unity Bancorp

A number of large investors have recently added to or reduced their stakes in UNTY. Renaissance Technologies LLC increased its position in shares of Unity Bancorp by 78.4% in the first quarter. Renaissance Technologies LLC now owns 15,700 shares of the financial services provider's stock valued at $814,000 after acquiring an additional 6,900 shares during the period. Public Employees Retirement System of Ohio boosted its holdings in shares of Unity Bancorp by 17.3% during the first quarter. Public Employees Retirement System of Ohio now owns 3,391 shares of the financial services provider's stock worth $176,000 after purchasing an additional 500 shares during the period. Hsbc Holdings PLC grew its stake in shares of Unity Bancorp by 34.2% in the first quarter. Hsbc Holdings PLC now owns 7,113 shares of the financial services provider's stock worth $367,000 after purchasing an additional 1,814 shares during the last quarter. Inspire Investing LLC grew its stake in shares of Unity Bancorp by 9.4% in the first quarter. Inspire Investing LLC now owns 9,945 shares of the financial services provider's stock worth $515,000 after purchasing an additional 851 shares during the last quarter. Finally, Sterling Capital Management LLC increased its holdings in Unity Bancorp by 1,798.0% during the 1st quarter. Sterling Capital Management LLC now owns 4,650 shares of the financial services provider's stock valued at $241,000 after purchasing an additional 4,405 shares during the period. Institutional investors own 42.31% of the company's stock.

About Unity Bancorp

Unity Bancorp, Inc is a bank holding company headquartered in Morrisville, Pennsylvania, trading on the NASDAQ under the ticker UNTY. Through its primary subsidiary, Unity Bank, the company delivers a comprehensive suite of commercial and retail banking services to individuals, businesses and municipal clients in its regional markets.

Founded in 1906, Unity Bank maintains a network of conveniently located branches across Bucks County and adjacent areas of southeastern Pennsylvania. The company's deposit portfolio includes checking and savings accounts, money market accounts and certificates of deposit, while its loan offerings encompass commercial real estate, construction and land development, agricultural and consumer lending solutions.

Beyond traditional deposit and lending activities, Unity Bancorp provides cash management and merchant services, as well as internet and mobile banking platforms designed to streamline day-to-day financial operations.

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