Unity Bancorp (NASDAQ:UNTY) Announces Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Unity Bancorp reported quarterly EPS of $1.40, beating the $1.37 consensus by $0.03 while posting $33.61M in revenue and strong profitability metrics (ROE 15.88%, net margin 30.76%).
• The company increased its quarterly dividend to $0.16 (from $0.15), equivalent to a $0.64 annualized payout and roughly a 1.1% yield with an 11.29% payout ratio.
• Analysts hold an average Buy rating with a $65 consensus price target after recent upgrades; the stock trades near $56.24 with a P/E of 9.92 and $563.5M market cap, while insiders sold ~19,678 shares in the past three months but still own 28.87%.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) released its quarterly earnings data on Tuesday. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.03, FiscalAI reports. The firm had revenue of $33.61 million during the quarter, compared to analysts' expectations of $33.59 million. Unity Bancorp had a return on equity of 15.88% and a net margin of 30.76%.

Unity Bancorp Stock Up 0.7%

Shares of NASDAQ UNTY opened at $56.24 on Tuesday. Unity Bancorp has a 1 year low of $38.01 and a 1 year high of $57.30. The firm's 50 day moving average price is $52.85 and its 200 day moving average price is $51.43. The firm has a market cap of $563.52 million, a P/E ratio of 9.92 and a beta of 0.64. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.16 and a current ratio of 1.16.

Unity Bancorp Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were paid a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, March 6th. This is a positive change from Unity Bancorp's previous quarterly dividend of $0.15. This represents a $0.64 annualized dividend and a dividend yield of 1.1%. Unity Bancorp's payout ratio is currently 11.29%.

Analyst Upgrades and Downgrades

UNTY has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Unity Bancorp in a research note on Wednesday, January 21st. Piper Sandler upped their target price on shares of Unity Bancorp from $64.00 to $65.00 and gave the stock an "overweight" rating in a research report on Thursday, January 15th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Unity Bancorp from $60.00 to $65.00 and gave the company an "outperform" rating in a research report on Wednesday, January 14th. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Unity Bancorp currently has an average rating of "Buy" and a consensus price target of $65.00.

Insider Buying and Selling

In other Unity Bancorp news, CEO James A. Hughes sold 1,500 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $54.50, for a total transaction of $81,750.00. Following the transaction, the chief executive officer owned 173,013 shares of the company's stock, valued at $9,429,208.50. This represents a 0.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Vincent Geraci sold 1,573 shares of the firm's stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $55.38, for a total value of $87,112.74. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,678 shares of company stock worth $1,003,769 in the last three months. 28.87% of the stock is currently owned by insiders.

Institutional Trading of Unity Bancorp

A number of hedge funds have recently added to or reduced their stakes in UNTY. Squarepoint Ops LLC grew its holdings in Unity Bancorp by 600.2% in the 4th quarter. Squarepoint Ops LLC now owns 40,327 shares of the financial services provider's stock valued at $2,086,000 after buying an additional 34,568 shares during the period. Two Sigma Investments LP lifted its holdings in shares of Unity Bancorp by 115.9% during the 3rd quarter. Two Sigma Investments LP now owns 50,920 shares of the financial services provider's stock worth $2,488,000 after acquiring an additional 27,340 shares during the period. Marshall Wace LLP boosted its position in shares of Unity Bancorp by 300.8% in the second quarter. Marshall Wace LLP now owns 29,898 shares of the financial services provider's stock worth $1,408,000 after acquiring an additional 22,439 shares during the last quarter. Kennedy Capital Management LLC boosted its position in shares of Unity Bancorp by 32.8% in the fourth quarter. Kennedy Capital Management LLC now owns 78,738 shares of the financial services provider's stock worth $4,072,000 after acquiring an additional 19,468 shares during the last quarter. Finally, Tudor Investment Corp ET AL purchased a new stake in Unity Bancorp in the fourth quarter valued at approximately $952,000. 42.31% of the stock is owned by institutional investors and hedge funds.

Unity Bancorp Company Profile

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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