Unity Bancorp (NASDAQ:UNTY) Sees Unusually-High Trading Volume – Should You Buy?

Unity Bancorp, Inc. (NASDAQ:UNTY) saw unusually-high trading volume on Tuesday . 30,124 shares were traded during trading, a decline of 42% from the previous session’s volume of 51,926 shares.The stock last traded at $56.3930 and had previously closed at $57.35.

Unity Bancorp News Summary

Here are the key news stories impacting Unity Bancorp this week:

• Positive Sentiment: DA Davidson reaffirmed its buy rating on Unity Bancorp and lifted its price target to $68, implying meaningful upside from current levels. Benzinga report
• Neutral Sentiment: Unity Bancorp reported Q2 net income of $14.5 million, or $1.42 per share, slightly higher than the prior quarter and reflecting solid profitability, a 2.01% return on average assets, and a 15.86% return on average equity. GlobeNewswire release
• Neutral Sentiment: The quarter was not a clean beat: EPS came in below consensus and revenue of $34.4 million also missed estimates, which may limit enthusiasm despite the year-over-year improvement. Zacks article
• Neutral Sentiment: Commentary around strong loan and deposit growth, healthy capital and liquidity, and a solid loan pipeline suggests the bank’s underlying fundamentals remain stable, though macro uncertainty and elevated rates remain a risk. Quiver Quant article

Analysts Set New Price Targets

Several equities analysts have issued reports on UNTY shares. Freedom Capital upgraded Unity Bancorp to a “hold” rating in a research report on Friday, July 3rd. Piper Sandler raised their price target on Unity Bancorp from $65.00 to $68.00 and gave the company an “overweight” rating in a report on Friday, June 26th. DA Davidson restated a “buy” rating and issued a $68.00 price target on shares of Unity Bancorp in a research note on Wednesday. Weiss Ratings raised Unity Bancorp from a “buy (b)” rating to a “buy (b+)” rating in a report on Monday, May 4th. Finally, Brean Capital started coverage on Unity Bancorp in a report on Wednesday, April 22nd. They issued a “buy” rating and a $61.00 target price for the company. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $65.50.

Unity Bancorp Stock Up 1.9%

The stock has a market capitalization of $568.46 million, a PE ratio of 9.85 and a beta of 0.62. The firm has a 50 day moving average of $55.53 and a two-hundred day moving average of $53.87. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.72.

Unity Bancorp (NASDAQ:UNTY) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.42 EPS for the quarter, missing analysts’ consensus estimates of $1.44 by ($0.02). The firm had revenue of $34.40 million for the quarter, compared to analysts’ expectations of $34.62 million. Unity Bancorp had a return on equity of 16.40% and a net margin of 30.26%. Equities research analysts anticipate that Unity Bancorp, Inc. will post 5.84 earnings per share for the current year.

Unity Bancorp Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, June 4th were given a $0.16 dividend. The ex-dividend date was Thursday, June 4th. This represents a $0.64 annualized dividend and a dividend yield of 1.1%. Unity Bancorp’s payout ratio is currently 10.77%.

Insider Transactions at Unity Bancorp

In other Unity Bancorp news, Director Mary E. Gross sold 2,075 shares of Unity Bancorp stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $56.01, for a total transaction of $116,220.75. Following the completion of the transaction, the director owned 18,479 shares in the company, valued at approximately $1,035,008.79. The trade was a 10.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Mark S. Brody sold 1,600 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $55.23, for a total transaction of $88,368.00. Following the transaction, the director directly owned 113,854 shares of the company’s stock, valued at approximately $6,288,156.42. This trade represents a 1.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 28.87% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Unity Bancorp

A number of institutional investors and hedge funds have recently bought and sold shares of UNTY. Wesbanco Bank Inc. acquired a new stake in Unity Bancorp during the first quarter worth approximately $1,083,000. JPMorgan Chase & Co. lifted its stake in shares of Unity Bancorp by 31.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 65,477 shares of the financial services provider’s stock worth $3,200,000 after purchasing an additional 15,628 shares during the period. Public Employees Retirement System of Ohio boosted its holdings in shares of Unity Bancorp by 17.3% during the first quarter. Public Employees Retirement System of Ohio now owns 3,391 shares of the financial services provider’s stock worth $176,000 after purchasing an additional 500 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in shares of Unity Bancorp by 34.2% during the first quarter. Hsbc Holdings PLC now owns 7,113 shares of the financial services provider’s stock worth $367,000 after purchasing an additional 1,814 shares during the last quarter. Finally, Inspire Investing LLC grew its position in shares of Unity Bancorp by 9.4% in the first quarter. Inspire Investing LLC now owns 9,945 shares of the financial services provider’s stock valued at $515,000 after purchasing an additional 851 shares during the period. Hedge funds and other institutional investors own 42.31% of the company’s stock.

About Unity Bancorp

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.