VersaBank (NASDAQ:VBNK) Sees Large Volume Increase – Time to Buy?

VersaBank (NASDAQ:VBNK) saw an uptick in trading volume on Friday. Approximately 79,854 shares changed hands during trading, a decline of 8% from the previous session’s volume of 86,573 shares. The stock last traded at $23.55 and had previously closed at $23.31.

Analyst Ratings Changes

VBNK has been the topic of several recent research reports. Roth Capital increased their target price on shares of VersaBank from $25.00 to $28.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Zacks Research lowered shares of VersaBank from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 18th. Weiss Ratings raised VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, September 18th. Finally, Raymond James Financial set a $20.00 price objective on VersaBank in a report on Thursday, September 3rd. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $24.00.

VersaBank Price Performance

The firm’s 50 day moving average is $20.61 and its 200 day moving average is $18.77. The company has a market capitalization of $772.53 million, a PE ratio of 31.52 and a beta of 1.06.

VersaBank (NASDAQ:VBNK) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.07). The firm had revenue of $27.67 million for the quarter, compared to analysts’ expectations of $28.76 million. VersaBank had a net margin of 9.92% and a return on equity of 8.66%. As a group, analysts predict that VersaBank will post 1.19 EPS for the current fiscal year.

VersaBank Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Investors of record on Friday, October 9th will be issued a dividend of C$0.03 per share. This represents a $0.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Friday, October 9th. VersaBank’s payout ratio is currently 9.21%.

Institutional Investors Weigh In On VersaBank

A number of large investors have recently made changes to their positions in the business. Cibc World Market Inc. purchased a new position in shares of VersaBank during the second quarter valued at approximately $26,781,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in VersaBank in the second quarter worth $16,364,000. Wellington Management Group LLP bought a new stake in VersaBank in the second quarter valued at $6,171,000. TD Waterhouse Canada Inc. increased its position in VersaBank by 0.3% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 187,323 shares of the company’s stock valued at $4,429,000 after purchasing an additional 507 shares during the period. Finally, Renaissance Technologies LLC increased its position in VersaBank by 29.7% during the 1st quarter. Renaissance Technologies LLC now owns 112,700 shares of the company’s stock valued at $1,597,000 after purchasing an additional 25,800 shares during the period. 56.86% of the stock is currently owned by institutional investors.

About VersaBank

VersaBank is a technology-focused bank headquartered in London, Ontario, Canada. The company operates a digital banking model that uses technology to deliver lending and deposit services without relying on a large traditional branch network.

The bank provides commercial lending, residential and consumer financing, and deposit products. Its specialty finance activities include purchasing and funding loan portfolios originated by third-party financial institutions and other businesses, including point-of-sale financing providers.