VersaBank (NASDAQ:VBNK) Sees Unusually-High Trading Volume Following Strong Earnings

VersaBank (NASDAQ:VBNK) saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 58,828 shares changed hands during mid-day trading, an increase of 5% from the previous session’s volume of 56,001 shares.The stock last traded at $18.99 and had previously closed at $18.13.

The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.02. The company had revenue of $28.17 million during the quarter, compared to analysts’ expectations of $26.86 million. VersaBank had a return on equity of 8.41% and a net margin of 9.34%.

VersaBank Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 10th will be given a $0.025 dividend. The ex-dividend date is Friday, July 10th. This represents a $0.10 annualized dividend and a dividend yield of 0.5%. VersaBank’s payout ratio is currently 10.00%.

Analysts Set New Price Targets

Several brokerages recently issued reports on VBNK. Zacks Research upgraded VersaBank from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Weiss Ratings upgraded VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, VersaBank has an average rating of “Hold” and a consensus price target of $13.00.

Institutional Investors Weigh In On VersaBank

Institutional investors and hedge funds have recently made changes to their positions in the stock. Connors Investor Services Inc. raised its stake in shares of VersaBank by 18.2% during the 3rd quarter. Connors Investor Services Inc. now owns 13,000 shares of the company’s stock worth $159,000 after purchasing an additional 2,000 shares in the last quarter. Salzhauer Michael raised its stake in shares of VersaBank by 68.4% during 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. Citadel Advisors LLC bought a new stake in shares of VersaBank during the 3rd quarter worth approximately $198,000. Quadrature Capital Ltd bought a new stake in shares of VersaBank during the 4th quarter worth approximately $201,000. Finally, First Trust Advisors LP raised its stake 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 worth $237,000 after purchasing an additional 5,144 shares in the last quarter. Institutional investors own 56.86% of the company’s stock.

VersaBank Trading Down 5.4%

The company has a market cap of $611.48 million, a P/E ratio of 27.52 and a beta of 1.10. The business has a 50 day moving average price of $17.00 and a 200-day moving average price of $15.51.

VersaBank Company Profile

VersaBank is a Canadian Schedule I chartered bank that operates as a fully digital institution, offering a range of deposit and lending solutions through its proprietary technology platform. Headquartered in London, Ontario, the bank has chosen to forego a traditional branch network in favor of online and digital distribution, enabling it to serve clients across Canada and the United States with efficiency and lower overhead.

The bank’s primary business activities include the origination and securitization of commercial loans, equipment financing, residential mortgages and construction loans.