Unity Bancorp (NASDAQ:UNTY) Sets New 52-Week High - Time to Buy?

Key Points

• Unity Bancorp reached a new 52-week high of $61.30, with shares last trading near $60.94. Analysts maintain a “Buy” consensus, with an average price target of $65.50 and several targets at $68.
• The bank’s latest quarterly results slightly missed expectations, reporting $1.42 in EPS versus $1.44 expected and revenue of $33.75 million versus $34.62 million projected. Despite the miss, Unity Bancorp posted a 30.26% net margin and 16.40% return on equity.
• Unity Bancorp pays a quarterly dividend of $0.16 per share, equal to a 1.1% yield, while institutional investors own 42.31% of the company and insiders hold 28.87%.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) reached a new 52-week high during trading on Wednesday . The company traded as high as $61.30 and last traded at $60.9360, with a volume of 3040 shares trading hands. The stock had previously closed at $60.69.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Brean Capital began coverage on shares of Unity Bancorp in a research note on Wednesday, April 22nd. They set a "buy" rating and a $61.00 target price for the company. Piper Sandler upped their price objective on Unity Bancorp from $65.00 to $68.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. Freedom Capital raised Unity Bancorp from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. DA Davidson reiterated a "buy" rating and issued a $68.00 target price on shares of Unity Bancorp in a research note on Wednesday, July 15th. Finally, Weiss Ratings reiterated a "buy (b+)" rating on shares of Unity Bancorp in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $65.50.

Unity Bancorp Trading Down 0.2%

The firm has a market capitalization of $608.08 million, a price-to-earnings ratio of 10.55 and a beta of 0.62. The business's 50 day moving average price is $57.30 and its 200-day moving average price is $54.65. 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 (NASDAQ:UNTY - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.42 EPS 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 $33.75 million during the quarter, compared to analyst estimates of $34.62 million. Equities analysts forecast that Unity Bancorp, Inc. will post 5.86 EPS for the current fiscal year.

Unity Bancorp Announces Dividend

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

Insider Buying and Selling

In other Unity Bancorp news, 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 directly 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 sale was disclosed in a filing with the SEC, which is accessible 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 the company. BlackRock Inc. purchased a new position in Unity Bancorp during the 2nd quarter valued at about $32,299,000. Squarepoint Ops LLC boosted its holdings in shares of Unity Bancorp by 600.2% during the fourth quarter. Squarepoint Ops LLC now owns 40,327 shares of the financial services provider's stock worth $2,086,000 after purchasing an additional 34,568 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in Unity Bancorp in the 2nd quarter valued at about $1,976,000. Two Sigma Investments LP increased its position in Unity Bancorp by 115.9% during the third quarter. Two Sigma Investments LP now owns 50,920 shares of the financial services provider's stock worth $2,488,000 after purchasing an additional 27,340 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in shares of Unity Bancorp by 300.8% during the 2nd quarter. Marshall Wace LLP now owns 29,898 shares of the financial services provider's stock worth $1,408,000 after buying an additional 22,439 shares during the last quarter. Institutional investors and hedge funds own 42.31% of the company's stock.

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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