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

Key Points

• Unity Bancorp has a consensus analyst rating of Buy from five coverage firms, with an average 12-month price target of $64.75.
• The company recently reported better-than-expected earnings, posting $1.40 EPS versus estimates of $1.37, while revenue also slightly beat forecasts.
• Unity Bancorp announced a quarterly dividend of $0.16 per share, implying an annualized yield of about 1.2% and a low payout ratio of 10.77%.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) has received an average rating of "Buy" from the five ratings firms that are covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a buy recommendation. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $64.75.

Several brokerages have issued reports on UNTY. DA Davidson began coverage on Unity Bancorp in a research note on Friday, May 15th. They issued a "buy" rating and a $68.00 target price on the stock. Weiss Ratings upgraded Unity Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research note on Monday, May 4th. Finally, Brean Capital began coverage on Unity Bancorp in a research note on Wednesday, April 22nd. They issued a "buy" rating and a $61.00 target price on the stock.

Unity Bancorp Stock Performance

Shares of UNTY opened at $54.71 on Tuesday. The firm has a market cap of $549.29 million, a PE ratio of 9.21 and a beta of 0.61. The stock's fifty day moving average price is $53.76 and its two-hundred day moving average price is $53.04. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.17 and a quick ratio of 1.17. Unity Bancorp has a 1 year low of $42.78 and a 1 year high of $57.30.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) last issued its earnings results on Tuesday, April 14th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.37 by $0.03. The firm had revenue of $33.61 million for the quarter, compared to analyst estimates of $33.59 million. Unity Bancorp had a return on equity of 16.06% and a net margin of 31.33%. On average, equities research analysts forecast that Unity Bancorp will post 5.84 EPS for the current year.

Unity Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, June 4th will be paid a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Thursday, June 4th. Unity Bancorp's payout ratio is presently 10.77%.

Insider Activity at Unity Bancorp

In related news, Director Mark S. Brody sold 1,600 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $55.23, for a total transaction of $88,368.00. Following the sale, the director directly owned 113,854 shares in the company, valued at approximately $6,288,156.42. The trade was a 1.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mary E. Gross sold 2,075 shares of the business's stock in a transaction 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 sale, the director owned 18,479 shares in the company, valued at approximately $1,035,008.79. The trade was a 10.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 18,488 shares of company stock worth $940,022. 28.87% of the stock is owned by company insiders.

Institutional Trading of Unity Bancorp

A number of hedge funds and other institutional investors have recently made changes to their positions in UNTY. CWM LLC raised its stake in shares of Unity Bancorp by 38.0% during the 4th quarter. CWM LLC now owns 857 shares of the financial services provider's stock valued at $44,000 after purchasing an additional 236 shares during the period. Russell Investments Group Ltd. raised its stake in shares of Unity Bancorp by 159.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 987 shares of the financial services provider's stock valued at $48,000 after purchasing an additional 606 shares during the period. Strs Ohio bought a new stake in shares of Unity Bancorp during the 1st quarter valued at $49,000. State of Alaska Department of Revenue raised its stake in shares of Unity Bancorp by 261.1% during the 4th quarter. State of Alaska Department of Revenue now owns 1,412 shares of the financial services provider's stock valued at $72,000 after purchasing an additional 1,021 shares during the period. Finally, AlphaQuest LLC bought a new stake in shares of Unity Bancorp during the 3rd quarter valued at $91,000. 42.31% of the stock is currently owned by institutional investors.

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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