Unity Bancorp (NASDAQ:UNTY) Sees Strong Trading Volume - Here's Why

Key Points

• Unity Bancorp saw unusually strong trading volume, with 43,611 shares changing hands on Monday, though that was down 18% from the prior session. The stock last traded around $57.40.
• Recent analyst activity has been broadly positive, including buy ratings and higher price targets from firms such as DA Davidson and Piper Sandler. The consensus rating is Buy, with a consensus price target of $65.50.
• The bank reported quarterly earnings of $1.42 per share, slightly below estimates, and revenue of $34.4 million, also modestly below expectations. It also paid a quarterly dividend of $0.16, implying an annualized yield of about 1.1%.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) saw unusually-strong trading volume on Monday . 43,611 shares changed hands during trading, a decline of 18% from the previous session's volume of 53,035 shares.The stock last traded at $57.4010 and had previously closed at $57.25.

Wall Street Analyst Weigh In

UNTY has been the subject of a number of recent analyst reports. DA Davidson restated a "buy" rating and issued a $68.00 price objective on shares of Unity Bancorp in a research report on Wednesday, July 15th. Weiss Ratings upgraded Unity Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research report on Monday, May 4th. Brean Capital initiated coverage on shares of Unity Bancorp in a research note on Wednesday, April 22nd. They issued a "buy" rating and a $61.00 price target on the stock. 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 report on Friday, June 26th. Finally, Freedom Capital upgraded shares of Unity Bancorp from a "hold" rating to a "strong-buy" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $65.50.

Unity Bancorp Price Performance

The company has a 50-day moving average of $55.71 and a 200 day moving average of $53.95. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $575.29 million, a PE ratio of 9.97 and a beta of 0.62.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.42 earnings per share for the quarter, missing analysts' consensus estimates of $1.44 by ($0.02). Unity Bancorp had a net margin of 30.26% and a return on equity of 16.40%. The firm had revenue of $34.40 million during the quarter, compared to analysts' expectations of $34.62 million. Sell-side analysts predict that Unity Bancorp, Inc. will post 5.86 EPS for the current year.

Unity Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Thursday, June 4th. Unity Bancorp's dividend payout ratio is 11.13%.

Insider Buying and Selling at Unity Bancorp

In related news, Director Mark S. Brody sold 1,600 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $55.23, for a total transaction of $88,368.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 28.87% of the company's stock.

Institutional Trading of Unity Bancorp

Several large investors have recently bought and sold shares of UNTY. Alliancebernstein L.P. boosted its holdings in shares of Unity Bancorp by 2.4% during the 3rd quarter. Alliancebernstein L.P. now owns 357,310 shares of the financial services provider's stock worth $17,462,000 after purchasing an additional 8,520 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Unity Bancorp by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 169,355 shares of the financial services provider's stock valued at $8,761,000 after purchasing an additional 1,291 shares during the last quarter. Maltese Capital Management LLC lifted its position in Unity Bancorp by 2.4% during the fourth quarter. Maltese Capital Management LLC now owns 159,000 shares of the financial services provider's stock worth $8,223,000 after buying an additional 3,700 shares in the last quarter. Bridgeway Capital Management LLC lifted its position in Unity Bancorp by 6.2% during the third quarter. Bridgeway Capital Management LLC now owns 90,179 shares of the financial services provider's stock worth $4,407,000 after buying an additional 5,248 shares in the last quarter. Finally, Kennedy Capital Management LLC lifted its position in Unity Bancorp by 32.8% during the fourth quarter. Kennedy Capital Management LLC now owns 78,738 shares of the financial services provider's stock worth $4,072,000 after buying an additional 19,468 shares in the last quarter. Hedge funds and other 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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