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

VersaBank (NASDAQ:VBNK)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $20.07, but opened at $18.80. VersaBank shares last traded at $18.88, with a volume of 7,892 shares traded.

Analysts Set New Price Targets

VBNK has been the topic of several recent research reports. Weiss Ratings raised VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, May 1st. Zacks Research upgraded VersaBank from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $13.00.

VersaBank Stock Performance

The company’s 50 day moving average price is $17.00 and its 200 day moving average price is $15.51. The company has a market cap of $618.98 million, a price-to-earnings ratio of 27.86 and a beta of 1.10.

VersaBank (NASDAQ:VBNK) last issued its earnings results 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 8.41%. The company had revenue of $28.17 million for the quarter, compared to the consensus estimate of $26.86 million. As a group, analysts predict that VersaBank will post 1.27 EPS for the current year.

VersaBank Dividend Announcement

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

Hedge Funds Weigh In On VersaBank

Institutional investors have recently bought and sold shares of the business. Connors Investor Services Inc. raised its position in VersaBank by 18.2% in the 3rd quarter. Connors Investor Services Inc. now owns 13,000 shares of the company’s stock valued at $159,000 after purchasing an additional 2,000 shares during the last quarter. Quadrature Capital Ltd bought a new position in VersaBank in the 4th quarter valued at $201,000. Citadel Advisors LLC bought a new position in VersaBank in the 3rd quarter valued at $198,000. Salzhauer Michael raised its position in VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company’s stock valued at $192,000 after purchasing an additional 6,843 shares during the last quarter. Finally, First Trust Advisors LP raised its position in VersaBank by 33.0% in the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company’s stock valued at $237,000 after purchasing an additional 5,144 shares during the last quarter. Institutional investors own 56.86% of the company’s stock.

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.