Unity Bancorp (NASDAQ:UNTY) Reaches New 1-Year High – Should You Buy?

Shares of Unity Bancorp, Inc. (NASDAQ:UNTY) hit a new 52-week high during trading on Friday . The company traded as high as $57.30 and last traded at $56.64, with a volume of 12988 shares trading hands. The stock had previously closed at $56.14.

Wall Street Analyst Weigh In

UNTY has been the subject of a number of analyst reports. Keefe, Bruyette & Woods lifted their price objective on shares of Unity Bancorp from $60.00 to $65.00 and gave the company an “outperform” rating in a report on Wednesday, January 14th. Weiss Ratings reiterated a “buy (b)” rating on shares of Unity Bancorp in a research note on Wednesday, January 21st. Wall Street Zen lowered Unity Bancorp from a “buy” rating to a “hold” rating in a report on Saturday, November 15th. Finally, Piper Sandler raised their target price on Unity Bancorp from $64.00 to $65.00 and gave the company an “overweight” rating in a report on Thursday, January 15th. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $65.00.

Unity Bancorp Stock Performance

The company’s 50-day simple moving average is $53.37 and its 200 day simple moving average is $50.77. The stock has a market cap of $562.46 million, a P/E ratio of 9.96 and a beta of 0.66. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.72.

Unity Bancorp (NASDAQ:UNTY) last issued its quarterly earnings results on Tuesday, January 13th. The financial services provider reported $1.41 EPS for the quarter, beating analysts’ consensus estimates of $1.35 by $0.06. The company had revenue of $33.70 million during the quarter, compared to the consensus estimate of $33.39 million. Unity Bancorp had a return on equity of 16.19% and a net margin of 30.76%. As a group, sell-side analysts expect that Unity Bancorp, Inc. will post 4.83 EPS for the current fiscal year.

Unity Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, December 5th were given a dividend of $0.15 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $0.60 annualized dividend and a dividend yield of 1.1%. Unity Bancorp’s dividend payout ratio (DPR) is currently 10.58%.

Insider Buying and Selling

In related news, SVP Minsu Kim sold 750 shares of the stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $56.13, for a total transaction of $42,097.50. Following the completion of the transaction, the senior vice president owned 791 shares in the company, valued at approximately $44,398.83. This represents a 48.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP James Joseph Donovan sold 777 shares of the firm’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $56.07, for a total transaction of $43,566.39. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 3,365 shares of company stock valued at $186,586. 29.68% of the stock is owned by insiders.

Institutional Investors Weigh In On Unity Bancorp

A number of hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC grew its holdings in Unity Bancorp by 70.8% during the first quarter. AQR Capital Management LLC now owns 11,419 shares of the financial services provider’s stock valued at $465,000 after purchasing an additional 4,732 shares during the period. Empowered Funds LLC lifted its position in shares of Unity Bancorp by 7.2% during the 1st quarter. Empowered Funds LLC now owns 37,456 shares of the financial services provider’s stock valued at $1,524,000 after buying an additional 2,524 shares during the last quarter. Jane Street Group LLC bought a new position in shares of Unity Bancorp during the 1st quarter worth $283,000. Strs Ohio purchased a new stake in Unity Bancorp in the 1st quarter worth about $49,000. Finally, Truist Financial Corp raised its stake in Unity Bancorp by 9.0% in the 2nd quarter. Truist Financial Corp now owns 50,577 shares of the financial services provider’s stock valued at $2,381,000 after acquiring an additional 4,172 shares during the period. Institutional investors own 42.31% of the company’s stock.

Unity Bancorp Company Profile

Unity Bancorp, Inc is a bank holding company headquartered in Morrisville, Pennsylvania, trading on the NASDAQ under the ticker UNTY. Through its primary subsidiary, Unity Bank, the company delivers a comprehensive suite of commercial and retail banking services to individuals, businesses and municipal clients in its regional markets.

Founded in 1906, Unity Bank maintains a network of conveniently located branches across Bucks County and adjacent areas of southeastern Pennsylvania. The company’s deposit portfolio includes checking and savings accounts, money market accounts and certificates of deposit, while its loan offerings encompass commercial real estate, construction and land development, agricultural and consumer lending solutions.

Beyond traditional deposit and lending activities, Unity Bancorp provides cash management and merchant services, as well as internet and mobile banking platforms designed to streamline day-to-day financial operations.