VersaBank (NASDAQ:VBNK) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded VersaBank from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with a $25.00 target price.
• VersaBank reported quarterly earnings of $0.28 per share, beating estimates of $0.26, while revenue of $28.17 million exceeded expectations of $26.86 million.
• Institutional ownership stands at 56.86%, with several major investors—including CIBC World Markets and Connor Clark & Lunn—initiating positions during the second quarter.

VersaBank (NASDAQ:VBNK - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

A number of other equities analysts have also recently commented on VBNK. Roth Capital raised VersaBank from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $20.00 to $25.00 in a report on Tuesday, June 30th. Weiss Ratings lowered VersaBank from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 9th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $25.00.

VersaBank Price Performance

Shares of NASDAQ:VBNK opened at $19.37 on Tuesday. The company's 50 day simple moving average is $20.27 and its 200 day simple moving average is $17.82. The stock has a market capitalization of $626.23 million, a price-to-earnings ratio of 28.07 and a beta of 1.06. VersaBank has a 1 year low of $10.47 and a 1 year high of $25.05.

VersaBank (NASDAQ:VBNK - Get Free Report) last released its earnings results on Wednesday, June 3rd. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.02. The firm had revenue of $28.17 million during the quarter, compared to analysts' expectations of $26.86 million. VersaBank had a return on equity of 8.32% and a net margin of 9.34%. As a group, analysts anticipate that VersaBank will post 1.3 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP acquired a new stake in shares of VersaBank during the 2nd quarter valued at $6,171,000. Brasada Capital Management LP acquired a new position in VersaBank in the 2nd quarter worth about $1,606,000. Bank of America Corp DE acquired a new position in VersaBank in the 2nd quarter worth about $1,133,000. Cibc World Market Inc. bought a new position in VersaBank in the second quarter valued at about $26,781,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in VersaBank in the second quarter valued at about $16,364,000. 56.86% of the stock is currently owned by institutional investors and hedge funds.

About VersaBank

VersaBank is a Canadian Schedule I chartered bank that operates as a fully digital institution, offering a range of deposit and lending solutions through its proprietary technology platform. Headquartered in London, Ontario, the bank has chosen to forego a traditional branch network in favor of online and digital distribution, enabling it to serve clients across Canada and the United States with efficiency and lower overhead.

The bank’s primary business activities include the origination and securitization of commercial loans, equipment financing, residential mortgages and construction loans.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source