VersaBank (NASDAQ:VBNK) Shares Down 3.7% – Here’s Why

VersaBank (NASDAQ:VBNK) shares fell 3.7% during trading on Thursday . The stock traded as low as $22.92 and last traded at $22.8410. 19,344 shares changed hands during trading, a decline of 72% from the average session volume of 69,510 shares. The stock had previously closed at $23.72.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on VBNK shares. Zacks Research upgraded shares of VersaBank from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Roth Mkm upgraded shares of VersaBank from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $20.00 to $25.00 in a report on Tuesday. Finally, Weiss Ratings lowered VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, June 9th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $25.00.

VersaBank Price Performance

The business has a 50-day simple moving average of $18.90 and a 200-day simple moving average of $16.63. The stock has a market cap of $705.18 million, a P/E ratio of 31.74 and a beta of 1.04.

VersaBank (NASDAQ:VBNK) last released its quarterly earnings results on Wednesday, June 3rd. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.02. VersaBank had a net margin of 9.34% and a return on equity of 8.32%. The company had revenue of $28.17 million for the quarter, compared to analyst estimates of $26.86 million. On average, analysts predict that VersaBank will post 1.3 earnings per share for the current fiscal year.

VersaBank Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 10th will be paid a $0.025 dividend. The ex-dividend date is Friday, July 10th. This represents a $0.10 dividend on an annualized basis and a yield of 0.5%. VersaBank’s dividend payout ratio (DPR) is presently 10.14%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. CSM Advisors LLC bought a new stake in VersaBank during the third quarter valued at about $3,418,000. Pembroke Management LTD increased its stake in shares of VersaBank by 40.7% in the fourth quarter. Pembroke Management LTD now owns 736,222 shares of the company’s stock worth $11,029,000 after purchasing an additional 213,037 shares during the period. Mudita Advisors LLP acquired a new position in shares of VersaBank during the 4th quarter worth about $1,462,000. Alliancebernstein L.P. lifted its position in shares of VersaBank by 2.7% during the 3rd quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company’s stock worth $35,604,000 after purchasing an additional 75,358 shares during the last quarter. Finally, Compass Rose Asset Management LP bought a new stake in VersaBank during the 3rd quarter valued at approximately $720,000. Institutional investors and hedge funds own 56.86% of the company’s stock.

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.