VersaBank (NASDAQ:VBNK) Shares Down 5.1% - What's Next?

Key Points

• Shares fell 5.1% to $16.1760 on Tuesday with trading volume of ~153,482 shares, a 203% jump versus the average, after a prior close of $17.04.
• Analyst sentiment is mixed—Zacks downgraded VersaBank to a "strong sell," while the stock's consensus rating is "Hold" with a consensus price target of $13.00.
• VersaBank reported quarterly EPS of $0.27 (in line with estimates) and revenue of $26.8M (slightly below expectations), announced a quarterly dividend of $0.025 (0.6% yield), and institutional investors hold about 56.9% of the shares.

VersaBank (NASDAQ:VBNK - Get Free Report)'s stock price dropped 5.1% on Tuesday . The company traded as low as $16.11 and last traded at $16.1760. Approximately 153,482 shares traded hands during trading, an increase of 203% from the average daily volume of 50,619 shares. The stock had previously closed at $17.04.

Analysts Set New Price Targets

VBNK has been the topic of a number of research analyst reports. Zacks Research cut VersaBank from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 12th. Weiss Ratings restated 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 assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $13.00.

VersaBank Trading Down 3.7%

The stock has a market cap of $526.11 million, a P/E ratio of 23.44 and a beta of 0.99. The firm has a 50-day simple moving average of $15.32 and a two-hundred day simple moving average of $14.03.

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

VersaBank Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Friday, April 10th will be given a dividend of $0.025 per share. The ex-dividend date is Friday, April 10th. This represents a $0.10 annualized dividend and a yield of 0.6%. VersaBank's dividend payout ratio (DPR) is presently 10.00%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Mendon Capital Advisors Corp increased its position in shares of VersaBank by 2.6% in the fourth quarter. Mendon Capital Advisors Corp now owns 1,057,693 shares of the company's stock worth $15,392,000 after purchasing an additional 26,559 shares during the period. Quadrature Capital Ltd bought a new position in shares of VersaBank in the fourth quarter worth $201,000. Millennium Management LLC bought a new position in shares of VersaBank in the fourth quarter worth $587,000. TCW Group Inc. increased its position in shares of VersaBank by 8.2% in the fourth quarter. TCW Group Inc. now owns 674,277 shares of the company's stock worth $10,101,000 after purchasing an additional 50,900 shares during the period. Finally, Mudita Advisors LLP bought a new position in shares of VersaBank in the fourth quarter worth $1,462,000. 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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