VersaBank (NASDAQ:VBNK) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• VersaBank reported quarterly earnings of $0.22 per share, exceeding estimates of $0.20 by $0.02.
• The company's stock rose by 3.1% following the earnings announcement, with a current market capitalization of $366.25 million.
• Raymond James Financial has maintained an "outperform" rating but lowered the price target for the stock to $13.00, down from $15.00.

VersaBank (NASDAQ:VBNK - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.22 EPS for the quarter, topping the consensus estimate of $0.20 by $0.02, Zacks reports. VersaBank had a net margin of 9.56% and a return on equity of 7.47%. The firm had revenue of $22.81 million during the quarter, compared to analyst estimates of $24.01 million.

VersaBank Trading Up 1.8%

Shares of NASDAQ VBNK traded up $0.22 during midday trading on Tuesday, reaching $12.03. The company's stock had a trading volume of 33,349 shares, compared to its average volume of 81,061. VersaBank has a one year low of $8.51 and a one year high of $18.38. The company has a 50 day moving average price of $11.25 and a 200 day moving average price of $11.01. The company has a market cap of $386.84 million, a price-to-earnings ratio of 17.68 and a beta of 0.96.

VersaBank Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Friday, October 31st will be issued a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Friday, October 10th. VersaBank's payout ratio is presently 10.29%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Salzhauer Michael increased its stake in VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company's stock valued at $192,000 after buying an additional 6,843 shares during the period. First Trust Advisors LP increased its stake in VersaBank by 33.0% in the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company's stock valued at $237,000 after buying an additional 5,144 shares during the period. Geode Capital Management LLC acquired a new position in VersaBank in the 2nd quarter valued at approximately $293,000. Benjamin Edwards Inc. acquired a new position in VersaBank in the 2nd quarter valued at approximately $413,000. Finally, Royal Bank of Canada increased its stake in VersaBank by 107.2% in the 1st quarter. Royal Bank of Canada now owns 56,371 shares of the company's stock valued at $585,000 after buying an additional 29,169 shares during the period. Institutional investors and hedge funds own 56.86% of the company's stock.

Analyst Ratings Changes

Several research firms have issued reports on VBNK. Raymond James Financial reiterated an "outperform" rating and set a $13.00 price objective (down from $15.00) on shares of VersaBank in a research note on Thursday, June 5th. Wall Street Zen upgraded shares of VersaBank from a "sell" rating to a "hold" rating in a research note on Saturday. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $11.27.

VersaBank Company Profile

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages.