Unity Bancorp (NASDAQ:UNTY) Stock Crosses Above Fifty Day Moving Average - Time to Sell?

Key Points

• Unity Bancorp crossed above its 50-day moving average, trading around $56.24 versus a 50-day average of $52.85 (200-day $51.43), suggesting short-term upward momentum.
• Sell-side sentiment is bullish: three analysts rate UNTY a Buy with a consensus price target of $65 after recent upgrades from Piper Sandler and Keefe, Bruyette & Woods.
• Fundamentals are solid — Unity reported an EPS beat ($1.41 vs. $1.35), a net margin of 30.8% and ROE of 15.9% — and recently raised its quarterly dividend to $0.16 (annualized $0.64, yield ~1.1%); the stock trades at a PE of ~9.9 and market cap ~$563.5M.

Unity Bancorp, Inc. (NASDAQ:UNTY - Get Free Report) shares passed above its 50-day moving average during trading on Monday . The stock has a 50-day moving average of $52.85 and traded as high as $56.44. Unity Bancorp shares last traded at $56.24, with a volume of 69,428 shares.

Analyst Upgrades and Downgrades

UNTY has been the topic of several research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Unity Bancorp in a research report on Wednesday, January 21st. Piper Sandler increased their target price on Unity Bancorp from $64.00 to $65.00 and gave the stock an "overweight" rating in a research report on Thursday, January 15th. Finally, Keefe, Bruyette & Woods increased their target price on Unity Bancorp from $60.00 to $65.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 14th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $65.00.

Unity Bancorp Price Performance

The company's fifty day moving average is $52.85 and its 200 day moving average is $51.43. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.77. The stock has a market cap of $563.52 million, a PE ratio of 9.92 and a beta of 0.64.

Unity Bancorp (NASDAQ:UNTY - Get Free Report) last posted its quarterly earnings results on Tuesday, January 13th. The financial services provider reported $1.41 EPS for the quarter, beating the consensus estimate of $1.35 by $0.06. Unity Bancorp had a net margin of 30.76% and a return on equity of 15.88%. The firm had revenue of $33.70 million for the quarter, compared to analyst estimates of $33.39 million. As a group, sell-side analysts anticipate that Unity Bancorp, Inc. will post 4.83 earnings per share for the current fiscal year.

Unity Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were given a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.1%. This is a boost from Unity Bancorp's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Friday, March 6th. Unity Bancorp's dividend payout ratio is 11.29%.

Insider Buying and Selling

In other Unity Bancorp news, Director Vincent Geraci sold 1,573 shares of the firm's stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $55.38, for a total value of $87,112.74. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO James A. Hughes sold 1,500 shares of the firm's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $54.50, for a total value of $81,750.00. Following the completion of the transaction, the chief executive officer directly owned 173,013 shares in the company, valued at $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. Insiders sold a total of 19,678 shares of company stock valued at $1,003,769 over the last ninety days. Insiders own 28.87% of the company's stock.

Institutional Trading of Unity Bancorp

Hedge funds have recently made changes to their positions in the company. Principal Financial Group Inc. purchased a new stake in shares of Unity Bancorp during the third quarter valued at approximately $550,000. Squarepoint Ops LLC purchased a new stake in shares of Unity Bancorp during the second quarter valued at approximately $498,000. JPMorgan Chase & Co. raised its stake in shares of Unity Bancorp by 31.4% during the third quarter. JPMorgan Chase & Co. now owns 65,477 shares of the financial services provider's stock valued at $3,200,000 after purchasing an additional 15,628 shares during the period. CenterBook Partners LP purchased a new stake in shares of Unity Bancorp during the third quarter valued at approximately $682,000. Finally, Royce & Associates LP raised its stake in shares of Unity Bancorp by 8.0% during the third quarter. Royce & Associates LP now owns 157,496 shares of the financial services provider's stock valued at $7,697,000 after purchasing an additional 11,676 shares during the period. 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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