VersaBank (NASDAQ:VBNK) Sets New 1-Year High – Should You Buy?

VersaBank (NASDAQ:VBNK)’s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $15.76 and last traded at $15.7050, with a volume of 4006 shares changing hands. The stock had previously closed at $15.48.

Analysts Set New Price Targets

Several equities analysts recently commented on VBNK shares. Zacks Research lowered shares of VersaBank from a “hold” rating to a “strong sell” rating in a research report on Monday, December 15th. Weiss Ratings restated a “hold (c)” rating on shares of VersaBank in a report on Wednesday, October 8th. Finally, Roth Capital lifted their target price on VersaBank from $10.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, December 11th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, VersaBank currently has a consensus rating of “Hold” and an average target price of $12.13.

VersaBank Price Performance

The company’s 50-day simple moving average is $13.42 and its 200-day simple moving average is $12.29. The company has a market cap of $511.52 million, a price-to-earnings ratio of 24.63 and a beta of 0.94.

VersaBank (NASDAQ:VBNK) last issued its quarterly earnings data on Wednesday, December 10th. The company reported $0.24 EPS for the quarter, hitting analysts’ consensus estimates of $0.24. The firm had revenue of $25.05 million for the quarter, compared to analyst estimates of $24.48 million. VersaBank had a net margin of 9.33% and a return on equity of 7.02%. Equities analysts predict that VersaBank will post 1.46 EPS for the current fiscal year.

VersaBank Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Saturday, January 31st. Shareholders of record on Friday, January 9th will be given a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, January 9th. VersaBank’s dividend payout ratio is presently 10.77%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. CSM Advisors LLC acquired a new position in VersaBank in the third quarter worth about $3,418,000. Pembroke Management LTD raised its position in shares of VersaBank by 21.8% during the 3rd quarter. Pembroke Management LTD now owns 523,185 shares of the company’s stock valued at $6,388,000 after acquiring an additional 93,578 shares in the last quarter. Alliancebernstein L.P. lifted its stake in VersaBank by 2.7% during the third 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. Compass Rose Asset Management LP bought a new position in shares of VersaBank in the 3rd quarter worth about $720,000. Finally, Kennedy Capital Management LLC boosted its holdings in shares of VersaBank by 18.9% in the 3rd quarter. Kennedy Capital Management LLC now owns 354,642 shares of the company’s stock valued at $4,330,000 after buying an additional 56,422 shares during the period. 56.86% of the stock is owned by institutional investors and hedge funds.

About VersaBank

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.