VersaBank (TSE:VBNK) Shares Up 2.8% - Time to Buy?

Key Points

• VersaBank's shares rose by 2.8% during trading on Tuesday, achieving a price of C$16.70 despite lower trading volume compared to its average session.
• Analysts have lowered the price target for VersaBank from C$21.00 to C$19.00 while maintaining an "outperform" rating, with a consensus "Buy" rating for the stock.
• VersaBank recently declared a quarterly dividend of $0.025, representing an annual yield of 0.6%, reflecting a conservative payout ratio of 10.64%.

VersaBank (TSE:VBNK - Get Free Report)'s share price shot up 2.8% during trading on Tuesday . The stock traded as high as C$16.80 and last traded at C$16.70. 24,750 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 29,111 shares. The stock had previously closed at C$16.24.

Analysts Set New Price Targets

Separately, Keefe, Bruyette & Woods dropped their price target on shares of VersaBank from C$21.00 to C$19.00 and set an "outperform" rating on the stock in a research report on Thursday, June 5th. One analyst has rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of C$19.00.

VersaBank Trading Down 1.9%

The company has a fifty day simple moving average of C$15.51 and a 200-day simple moving average of C$15.24. The stock has a market cap of C$534.61 million, a price-to-earnings ratio of 17.49 and a beta of 0.89.

VersaBank Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Thursday, July 31st were issued a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, July 4th. VersaBank's payout ratio is presently 10.64%.

About VersaBank

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.