Unity Bancorp (NASDAQ:UNTY) Releases Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Unity Bancorp reported quarterly earnings of $1.42 per share, which missed analyst expectations by $0.02.
• The stock fell 1.6% after the earnings release, trading at $56.45 on lighter-than-average volume.
• The company recently paid a quarterly dividend of $0.16 per share, equal to a $0.64 annualized payout and a 1.1% yield.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $1.42 earnings per share for the quarter, missing analysts' consensus estimates of $1.44 by ($0.02), Zacks reports. Unity Bancorp had a return on equity of 16.06% and a net margin of 31.33%.

Unity Bancorp Stock Down 1.6%

Shares of Unity Bancorp stock traded down $0.90 during trading on Tuesday, hitting $56.45. 30,124 shares of the stock traded hands, compared to its average volume of 51,926. Unity Bancorp has a 52-week low of $44.34 and a 52-week high of $60.86. The stock's fifty day simple moving average is $55.42 and its 200 day simple moving average is $53.83. The firm has a market cap of $566.72 million, a P/E ratio of 9.50 and a beta of 0.62. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.72.

Unity Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 1.1%. The ex-dividend date was Thursday, June 4th. Unity Bancorp's dividend payout ratio (DPR) is presently 10.77%.

Analyst Ratings Changes

UNTY has been the topic of several research analyst reports. Piper Sandler boosted their price target on shares of Unity Bancorp from $65.00 to $68.00 and gave the stock an "overweight" rating in a research note on Friday, June 26th. Brean Capital assumed coverage on Unity Bancorp in a research note on Wednesday, April 22nd. They issued a "buy" rating and a $61.00 price objective on the stock. Weiss Ratings upgraded Unity Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, May 4th. Freedom Capital raised shares of Unity Bancorp to a "hold" rating in a report on Friday, July 3rd. Finally, DA Davidson began coverage on shares of Unity Bancorp in a research report on Friday, May 15th. They issued a "buy" rating and a $68.00 price target on the stock. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $65.50.

Insider Buying and Selling

In other Unity Bancorp news, Director Mary E. Gross sold 2,075 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $56.01, for a total transaction of $116,220.75. Following the completion of the sale, the director directly owned 18,479 shares of the company's stock, valued at approximately $1,035,008.79. This represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Mark S. Brody sold 1,600 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $55.23, for a total transaction of $88,368.00. Following the completion of the sale, the director owned 113,854 shares of the company's stock, valued at approximately $6,288,156.42. This trade represents a 1.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 28.87% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Russell Investments Group Ltd. lifted its position in Unity Bancorp by 159.1% during the third 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 acquired a new stake in Unity Bancorp during the 1st quarter worth about $49,000. BNP Paribas Financial Markets grew its position in Unity Bancorp by 14.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,883 shares of the financial services provider's stock worth $136,000 after purchasing an additional 372 shares during the period. Quantbot Technologies LP purchased a new position in shares of Unity Bancorp during the 2nd quarter valued at about $141,000. Finally, Virtus Advisers LLC acquired a new position in shares of Unity Bancorp in the 3rd quarter valued at about $173,000. Institutional investors and hedge funds 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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