VersaBank (NASDAQ:VBNK) Sees Large Volume Increase - Time to Buy?

Key Points

• VersaBank saw trading volume of about 38,716 shares and its stock last traded at $17.06, up from a prior close of $16.07.
• Analysts have a consensus Hold rating with a $13.00 price target (1 Buy, 2 Hold, 1 Sell), and Zacks recently downgraded the stock to "strong sell."
• Key fundamentals: market cap ~$562M and P/E ~25.1; the company reported Q earnings of $0.27 EPS (matching estimates) with revenue slightly below expectations, and it pays a quarterly dividend of $0.025 (annualized $0.10, ~0.6% yield).

VersaBank (NASDAQ:VBNK - Get Free Report) saw unusually-strong trading volume on Monday . Approximately 38,716 shares traded hands during trading, a decline of 28% from the previous session's volume of 53,562 shares.The stock last traded at $17.0610 and had previously closed at $16.07.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Zacks Research downgraded VersaBank from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 12th. Weiss Ratings reiterated a "hold (c)" rating on shares of VersaBank in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, VersaBank has a consensus rating of "Hold" and a consensus price target of $13.00.

VersaBank Trading Up 9.1%

The firm has a market capitalization of $562.27 million, a P/E ratio of 25.06 and a beta of 0.99. The business's 50 day simple moving average is $15.33 and its two-hundred day simple moving average is $14.14.

VersaBank (NASDAQ:VBNK - Get Free Report) last issued its earnings results on Tuesday, March 3rd. The company reported $0.27 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.27. VersaBank had a net margin of 10.03% and a return on equity of 7.70%. The business had revenue of $26.80 million during the quarter, compared to analysts' expectations of $26.92 million. Analysts predict that VersaBank will post 1.46 EPS for the current fiscal year.

VersaBank Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, April 10th will be given a $0.025 dividend. The ex-dividend date of this dividend is Friday, April 10th. This represents a $0.10 annualized dividend and a yield of 0.6%. VersaBank's dividend payout ratio is 10.00%.

Institutional Trading of VersaBank

Institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada raised its stake in shares of VersaBank by 107.2% in the first quarter. Royal Bank of Canada now owns 56,371 shares of the company's stock worth $585,000 after purchasing an additional 29,169 shares during the last quarter. Geode Capital Management LLC purchased a new stake in shares of VersaBank during the second quarter valued at $293,000. First Trust Advisors LP increased its holdings in VersaBank by 33.0% in the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company's stock worth $237,000 after buying an additional 5,144 shares in the last quarter. Alliancebernstein L.P. raised its position in VersaBank by 1.1% in the 2nd quarter. Alliancebernstein L.P. now owns 2,840,626 shares of the company's stock worth $32,383,000 after buying an additional 29,613 shares during the last quarter. Finally, Mendon Capital Advisors Corp raised its position in VersaBank by 4.0% in the 2nd quarter. Mendon Capital Advisors Corp now owns 1,052,650 shares of the company's stock worth $12,000,000 after buying an additional 40,127 shares during the last quarter. Institutional investors own 56.86% of the company's stock.

VersaBank Company Profile

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.

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