Unity Bancorp (NASDAQ:UNTY) Hits New 1-Year High - Should You Buy?

Key Points

• Unity Bancorp hit a new 52-week high, trading as high as $57.82 after recent strength in the stock.
• Analysts remain bullish on the bank, with five Buy ratings and a consensus price target of $64.75; DA Davidson recently initiated coverage with a $68 target.
• The company topped quarterly earnings expectations, paid a $0.16 quarterly dividend (1.1% annualized yield), and has relatively modest leverage with a debt-to-equity ratio of 0.72.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) shares reached a new 52-week high on Monday . The company traded as high as $57.82 and last traded at $56.5020, with a volume of 5169 shares traded. The stock had previously closed at $56.63.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on UNTY shares. DA Davidson initiated coverage on Unity Bancorp in a report on Friday, May 15th. They set a "buy" rating and a $68.00 target price for the company. Weiss Ratings raised Unity Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, May 4th. Finally, Brean Capital initiated coverage on Unity Bancorp in a report on Wednesday, April 22nd. They set a "buy" rating and a $61.00 target price on the stock. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Unity Bancorp currently has a consensus rating of "Buy" and a consensus price target of $64.75.

Unity Bancorp Stock Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.17 and a quick ratio of 1.17. The stock has a 50-day simple moving average of $54.12 and a 200-day simple moving average of $53.26. The stock has a market cap of $562.25 million, a P/E ratio of 9.43 and a beta of 0.61.

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

Unity Bancorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, June 4th. Unity Bancorp's payout ratio is currently 10.77%.

Insider Transactions at Unity Bancorp

In other Unity Bancorp news, Director Mary E. Gross sold 2,075 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $56.01, for a total value of $116,220.75. Following the completion of the transaction, the director directly owned 18,479 shares in the company, valued at approximately $1,035,008.79. This trade represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark S. Brody sold 1,600 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $55.23, for a total value of $88,368.00. Following the completion of the transaction, the director owned 113,854 shares of the company's stock, valued at $6,288,156.42. This represents a 1.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 28.87% of the company's stock.

Hedge Funds Weigh In On Unity Bancorp

Several large investors have recently bought and sold shares of the company. CWM LLC raised its position in Unity Bancorp by 38.0% in the fourth 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 last quarter. Gator Capital Management LLC raised its position in Unity Bancorp by 0.8% in the third quarter. Gator Capital Management LLC now owns 33,536 shares of the financial services provider's stock valued at $1,639,000 after purchasing an additional 280 shares during the last quarter. Hsbc Holdings PLC raised its position in Unity Bancorp by 5.1% in the second quarter. Hsbc Holdings PLC now owns 6,056 shares of the financial services provider's stock valued at $287,000 after purchasing an additional 295 shares during the last quarter. BNP Paribas Financial Markets raised its position in Unity Bancorp by 14.8% in the second quarter. BNP Paribas Financial Markets now owns 2,883 shares of the financial services provider's stock valued at $136,000 after purchasing an additional 372 shares during the last quarter. Finally, Rhumbline Advisers raised its position in Unity Bancorp by 3.7% in the second quarter. Rhumbline Advisers now owns 10,805 shares of the financial services provider's stock valued at $509,000 after purchasing an additional 385 shares during the last quarter. 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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