VersaBank (NASDAQ:VBNK) Trading Down 0.5% - What's Next?

Key Points

• VersaBank shares fell about 0.5% to $14.54 on Tuesday, trading just 18,330 shares—roughly half its average session volume.
• Analysts maintain a consensus rating of Hold with a consensus price target of $13; the coverage is split (1 Buy, 2 Hold, 1 Sell) with recent moves including a Zacks downgrade to "strong sell" and Roth MKM raising its target to $13.
• Key fundamentals: market cap ~$466.3M and P/E ~20.8; the company reported Q quarterly EPS of $0.27 (in line with estimates) and declared a $0.025 quarterly dividend (0.7% yield), ex-dividend April 10.

VersaBank (NASDAQ:VBNK - Get Free Report) shares fell 0.5% on Tuesday . The company traded as low as $14.38 and last traded at $14.54. 18,330 shares were traded during trading, a decline of 50% from the average session volume of 36,731 shares. The stock had previously closed at $14.61.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on VBNK. Weiss Ratings reaffirmed a "hold (c)" rating on shares of VersaBank in a report on Wednesday, January 21st. Zacks Research lowered shares of VersaBank from a "hold" rating to a "strong sell" rating in a report on Thursday, March 12th. Finally, Roth Mkm raised their price objective on shares of VersaBank from $10.00 to $13.00 and gave the stock a "neutral" rating in a report on Thursday, December 11th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $13.00.

VersaBank Stock Performance

The company has a market capitalization of $466.30 million, a price-to-earnings ratio of 20.77 and a beta of 0.99. The company's fifty day simple moving average is $15.26 and its two-hundred day simple moving average is $13.93.

VersaBank (NASDAQ:VBNK - Get Free Report) last announced 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 company had revenue of $26.80 million during the quarter, compared to analyst estimates of $26.92 million. VersaBank had a net margin of 10.03% and a return on equity of 7.70%. Sell-side analysts anticipate that VersaBank will post 1.46 EPS for the current year.

VersaBank Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Friday, April 10th will be issued a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Friday, April 10th. VersaBank's dividend payout ratio (DPR) is currently 10.00%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of VBNK. Connors Investor Services Inc. boosted its holdings in shares of VersaBank by 18.2% in the 3rd quarter. Connors Investor Services Inc. now owns 13,000 shares of the company's stock valued at $159,000 after buying an additional 2,000 shares during the period. Salzhauer Michael boosted its holdings in shares of 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. Citadel Advisors LLC acquired a new position in shares of VersaBank in the 3rd quarter valued at about $198,000. Quadrature Capital Ltd acquired a new position in shares of VersaBank in the 4th quarter valued at about $201,000. Finally, First Trust Advisors LP boosted its holdings in shares of 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. 56.86% of the stock is owned by institutional investors and hedge funds.

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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