VersaBank (NASDAQ:VBNK) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research has downgraded VersaBank (NASDAQ:VBNK) from a "hold" to a "strong sell" rating, indicating a negative shift in analyst sentiment.
• Despite the downgrade, VersaBank has received a mixed reception from other analysts, with ratings ranging from "buy" to "sell," and a consensus rating of "hold" with an average target price of $11.27.
• VersaBank's recent earnings report showed a net margin of 9.56% and a return on equity of 7.47%, but revenue fell short of analyst expectations, raising potential concerns among investors.

VersaBank (NASDAQ:VBNK - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities research analysts have also commented on the company. Wall Street Zen upgraded VersaBank from a "sell" rating to a "hold" rating in a research report on Saturday, September 6th. Raymond James Financial restated an "outperform" rating and issued a $13.00 price objective (down previously from $15.00) on shares of VersaBank in a research report on Thursday, June 5th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, VersaBank presently has an average rating of "Hold" and an average price target of $11.27.

VersaBank Stock Performance

NASDAQ VBNK traded down $0.22 during trading hours on Tuesday, reaching $11.90. The stock had a trading volume of 60,756 shares, compared to its average volume of 98,477. The stock has a fifty day moving average of $11.29 and a 200 day moving average of $11.00. The stock has a market cap of $382.82 million, a P/E ratio of 17.50 and a beta of 0.96. VersaBank has a 52-week low of $8.51 and a 52-week high of $18.38.

VersaBank (NASDAQ:VBNK - Get Free Report) last issued its earnings results on Thursday, September 4th. The company reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.02. VersaBank had a return on equity of 7.47% and a net margin of 9.56%.The firm had revenue of $22.81 million for the quarter, compared to analyst estimates of $24.01 million. On average, equities research analysts forecast that VersaBank will post 1.46 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Canton Hathaway LLC purchased a new position in shares of VersaBank during the 1st quarter valued at approximately $51,000. Trexquant Investment LP purchased a new position in shares of VersaBank during the 1st quarter valued at approximately $112,000. Connors Investor Services Inc. purchased a new position in shares of VersaBank during the 2nd quarter valued at approximately $125,000. Salzhauer Michael lifted its position in shares of VersaBank by 68.4% during 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 in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of VersaBank by 33.0% during 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 in the last quarter. Hedge funds and other institutional investors own 56.86% of the company's stock.

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.