VersaBank (TSE:VBNK) Shares Up 2.8% - Here's Why

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) traded up 2.8% during trading on Tuesday . The company traded as high as C$16.80 and last traded at C$16.70. 24,750 shares changed 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 objective on shares of VersaBank from C$21.00 to C$19.00 and set an "outperform" rating on the stock in a research note on Thursday, June 5th. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of C$19.00.

VersaBank Trading Up 2.8%

The firm has a 50-day moving average price of C$15.46 and a 200 day moving average price of C$15.30. The company has a market cap of C$543.07 million, a price-to-earnings ratio of 17.77 and a beta of 0.89.

VersaBank Dividend Announcement

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

VersaBank Company Profile

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.

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