VersaBank (NASDAQ:VBNK) Shares Gap Up – Should You Buy?

VersaBank (NASDAQ:VBNK)’s share price gapped up prior to trading on Friday . The stock had previously closed at $19.83, but opened at $20.79. VersaBank shares last traded at $19.8870, with a volume of 9,552 shares.

Wall Street Analyst Weigh In

Several research firms recently weighed in on VBNK. Weiss Ratings downgraded VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, June 9th. Roth Capital upgraded VersaBank from a “neutral” rating to a “buy” rating and upped their price target for the stock from $20.00 to $25.00 in a research report on Tuesday, June 30th. Finally, Zacks Research raised VersaBank from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, VersaBank currently has an average rating of “Buy” and an average price target of $25.00.

VersaBank Price Performance

The stock’s 50-day simple moving average is $19.86 and its two-hundred day simple moving average is $17.30. The firm has a market capitalization of $639.17 million, a P/E ratio of 28.77 and a beta of 1.04.

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

VersaBank Announces Dividend

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

Hedge Funds Weigh In On VersaBank

Several large investors have recently made changes to their positions in the business. Pembroke Management LTD boosted 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 acquiring an additional 213,037 shares during the period. Mudita Advisors LLP bought a new stake in VersaBank during the 4th quarter valued at approximately $1,462,000. Alliancebernstein L.P. raised its stake in VersaBank by 2.7% during the 3rd quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company’s stock valued at $35,604,000 after purchasing an additional 75,358 shares during the period. Kennedy Capital Management LLC lifted its holdings in VersaBank by 18.9% in the 3rd quarter. Kennedy Capital Management LLC now owns 354,642 shares of the company’s stock worth $4,330,000 after purchasing an additional 56,422 shares in the last quarter. Finally, Two Sigma Investments LP purchased a new position in VersaBank in the 3rd quarter worth approximately $642,000. 56.86% of the stock is currently owned by hedge funds and other institutional investors.

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.