Unity Bancorp (NASDAQ:UNTY) Shares Pass Above 200-Day Moving Average - Here's What Happened

Key Points

• Unity Bancorp (UNTY) traded above its 200-day moving average
• Analyst sentiment is broadly positive with a consensus "Buy" rating and an average price target of about $63.67, including recent upgrades and higher targets from Piper Sandler and Keefe, Bruyette & Woods.
• The company reported an earnings beat (Q EPS $1.40 vs. $1.37), strong profitability (ROE 16.36%, net margin 31.33%), and raised its quarterly dividend to $0.16, though insiders have been selling recently (18,388 shares in the last three months) while still holding ~28.87% of shares.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $51.80 and traded as high as $53.65. Unity Bancorp shares last traded at $52.19, with a volume of 35,997 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on UNTY shares. Weiss Ratings restated a "buy (b)" rating on shares of Unity Bancorp in a report on Monday, April 20th. Piper Sandler upped their price target on Unity Bancorp from $64.00 to $65.00 and gave the stock an "overweight" rating in a report on Thursday, January 15th. Brean Capital started coverage on Unity Bancorp in a report on Wednesday, April 22nd. They issued a "buy" rating and a $61.00 price target for the company. Finally, Keefe, Bruyette & Woods upped their price target on Unity Bancorp from $60.00 to $65.00 and gave the stock an "outperform" rating in a report on Wednesday, January 14th. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Unity Bancorp has a consensus rating of "Buy" and a consensus price target of $63.67.

Unity Bancorp Stock Performance

The company has a market capitalization of $522.94 million, a PE ratio of 8.79 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. The company has a 50 day moving average price of $52.47 and a 200 day moving average price of $51.80.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) last released its earnings results on Tuesday, April 14th. The financial services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.37 by $0.03. The company 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 16.36% and a net margin of 31.33%. Equities analysts forecast that Unity Bancorp, Inc. will post 5.79 EPS for the current year.

Unity Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were paid a dividend of $0.16 per share. This is an increase from Unity Bancorp's previous quarterly dividend of $0.15. The ex-dividend date was Friday, March 6th. This represents a $0.64 annualized dividend and a dividend yield of 1.2%. Unity Bancorp's dividend payout ratio (DPR) is currently 10.77%.

Insider Activity

In other news, Director Mary E. Gross sold 2,075 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $56.01, for a total transaction 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 represents a 10.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO James A. Hughes sold 1,500 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $54.50, for a total value of $81,750.00. Following the transaction, the chief executive officer owned 173,013 shares of the company's stock, valued at approximately $9,429,208.50. This trade represents a 0.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 18,388 shares of company stock worth $933,404. 28.87% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Unity Bancorp

Large investors have recently added to or reduced their stakes in the company. CWM LLC lifted its stake in Unity Bancorp by 38.0% during the fourth quarter. CWM LLC now owns 857 shares of the financial services provider's stock worth $44,000 after purchasing an additional 236 shares during the last quarter. Russell Investments Group Ltd. lifted its stake 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 worth $48,000 after purchasing an additional 606 shares during the last quarter. Strs Ohio bought a new position in Unity Bancorp during the first quarter worth $49,000. State of Alaska Department of Revenue lifted its stake in Unity Bancorp by 261.1% during the fourth quarter. State of Alaska Department of Revenue now owns 1,412 shares of the financial services provider's stock worth $72,000 after purchasing an additional 1,021 shares during the last quarter. Finally, AlphaQuest LLC bought a new position in Unity Bancorp during the third quarter worth $91,000. 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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