VersaBank (NASDAQ:VBNK) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• VersaBank saw unusually high trading volume, with about 114,054 shares changing hands, up 52% from the prior session, while the stock traded slightly below its previous close.
• Analyst sentiment is mixed: Roth Capital upgraded the stock to Buy and raised its price target to $25, while Zacks and Weiss both moved their ratings to Hold. Overall, MarketBeat shows an average Hold rating with a $25 price target.
• The bank recently beat quarterly earnings expectations, reporting $0.28 EPS versus $0.26 expected and revenue of $28.17 million versus $26.86 million expected. VersaBank also declared a quarterly dividend of $0.025 per share, yielding about 0.5% annualized.

Shares of VersaBank (NASDAQ:VBNK - Get Free Report) saw unusually-high trading volume on Friday . Approximately 114,054 shares traded hands during trading, an increase of 52% from the previous session's volume of 74,826 shares.The stock last traded at $21.1950 and had previously closed at $21.49.

Analyst Ratings Changes

VBNK has been the subject of several recent analyst reports. Zacks Research raised VersaBank from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Weiss Ratings lowered shares of VersaBank from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, June 9th. Finally, Roth Capital upgraded shares of VersaBank from a "neutral" rating to a "buy" rating and raised their price target for the stock from $20.00 to $25.00 in a research note on Tuesday, June 30th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, VersaBank presently has an average rating of "Hold" and an average price target of $25.00.

VersaBank Stock Performance

The firm has a market capitalization of $683.32 million, a PE ratio of 30.76 and a beta of 1.04. The business's 50 day moving average is $19.54 and its two-hundred day moving average is $17.08.

VersaBank (NASDAQ:VBNK - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.02. The company 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, equities research analysts predict that VersaBank will post 1.3 EPS for the current year.

VersaBank Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 10th will be issued a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, July 10th. VersaBank's dividend payout ratio is presently 10.14%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Pembroke Management LTD grew its position in VersaBank by 40.7% during the fourth quarter. Pembroke Management LTD now owns 736,222 shares of the company's stock worth $11,029,000 after buying an additional 213,037 shares in the last quarter. Mudita Advisors LLP purchased a new position in shares of VersaBank during the fourth quarter worth about $1,462,000. Alliancebernstein L.P. increased its position in shares of VersaBank by 2.7% in the third quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company's stock worth $35,604,000 after purchasing an additional 75,358 shares during the last quarter. Kennedy Capital Management LLC increased its position in shares of VersaBank by 18.9% in the third quarter. Kennedy Capital Management LLC now owns 354,642 shares of the company's stock worth $4,330,000 after purchasing an additional 56,422 shares during the last quarter. Finally, Two Sigma Investments LP purchased a new stake in VersaBank in the third quarter valued at approximately $642,000. Institutional investors own 56.86% of the company's stock.

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.