VersaBank (NASDAQ:VBNK) Shares Gap Up – Time to Buy?

Shares of VersaBank (NASDAQ:VBNK) gapped up before the market opened 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 changing hands.

Analyst Upgrades and Downgrades

VBNK has been the subject of a number of recent research reports. Roth Capital raised shares of VersaBank from a “neutral” rating to a “buy” rating and lifted their price target for the company from $20.00 to $25.00 in a research report on Tuesday, June 30th. Zacks Research upgraded shares of VersaBank from a “hold” rating to a “strong-buy” rating in a report on Monday. Finally, Weiss Ratings downgraded shares of VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $25.00.

VersaBank Stock Performance

The stock has a market cap of $641.91 million, a PE ratio of 28.98 and a beta of 1.04. The firm has a 50-day moving average price of $19.80 and a 200-day moving average price of $17.28.

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. The company had revenue of $28.17 million for the quarter, compared to the consensus estimate of $26.86 million. VersaBank had a net margin of 9.34% and a return on equity of 8.32%. As a group, sell-side analysts anticipate that VersaBank will post 1.3 EPS for the current fiscal year.

VersaBank Announces Dividend

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 dividend payout ratio is currently 10.14%.

Institutional Investors Weigh In On VersaBank

Several institutional investors and hedge funds have recently made changes to their positions in the company. Quadrature Capital Ltd purchased a new position in VersaBank in the 4th quarter worth approximately $201,000. Citadel Advisors LLC bought a new stake in shares of VersaBank in the 3rd quarter worth $198,000. Salzhauer Michael increased its holdings in shares of VersaBank by 68.4% in the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company’s stock worth $192,000 after purchasing an additional 6,843 shares in the last quarter. First Trust Advisors LP raised its stake in shares of VersaBank by 33.0% in the second quarter. First Trust Advisors LP now owns 20,753 shares of the company’s stock worth $237,000 after purchasing an additional 5,144 shares during the last quarter. Finally, Geode Capital Management LLC purchased a new position in shares of VersaBank in the second quarter worth $293,000. Institutional investors 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.