Zacks Research Downgrades VersaBank (NASDAQ:VBNK) to Strong Sell

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 stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday, September 9th,Zacks.com reports.

A number of other brokerages also recently weighed in on VBNK. Wall Street Zen raised shares of VersaBank from a "sell" rating to a "hold" rating in a research note on Saturday, September 6th. Raymond James Financial reissued an "outperform" rating and set a $13.00 price target (down from $15.00) on shares of VersaBank in a research note on Thursday, June 5th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $11.27.

VersaBank Trading Down 0.2%

Shares of VBNK stock traded down $0.03 during trading hours on Tuesday, reaching $12.23. The stock had a trading volume of 18,093 shares, compared to its average volume of 80,683. The stock's fifty day simple moving average is $11.30 and its 200 day simple moving average is $10.99. VersaBank has a 12 month low of $8.51 and a 12 month high of $18.38. The firm has a market capitalization of $393.44 million, a PE ratio of 17.99 and a beta of 0.96.

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Canton Hathaway LLC bought a new position in VersaBank in the 1st quarter worth $51,000. Trexquant Investment LP bought a new position in VersaBank in the 1st quarter worth $112,000. Connors Investor Services Inc. bought a new position in VersaBank in the 2nd quarter worth $125,000. Salzhauer Michael raised its holdings in VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company's stock worth $192,000 after purchasing an additional 6,843 shares in the last quarter. Finally, First Trust Advisors LP raised its holdings in VersaBank by 33.0% in the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company's stock worth $237,000 after purchasing an additional 5,144 shares in the last quarter. 56.86% of the stock is currently owned by institutional investors.

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.