VersaBank (NASDAQ:VBNK) Hits New 52-Week High After Analyst Upgrade

Shares of VersaBank (NASDAQ:VBNK) reached a new 52-week high during mid-day trading on Tuesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The company traded as high as $18.89 and last traded at $18.6180, with a volume of 62092 shares changing hands. The stock had previously closed at $17.87.

Separately, Weiss Ratings upgraded VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $13.00.

Hedge Funds Weigh In On VersaBank

A number of institutional investors have recently made changes to their positions in VBNK. CSM Advisors LLC acquired a new position in VersaBank in the third quarter valued at $3,418,000. Pembroke Management LTD increased its stake in VersaBank by 40.7% in the fourth quarter. Pembroke Management LTD now owns 736,222 shares of the company’s stock valued at $11,029,000 after purchasing an additional 213,037 shares during the last quarter. Mudita Advisors LLP acquired a new position in VersaBank in the fourth quarter valued at $1,462,000. Alliancebernstein L.P. increased its stake in VersaBank by 2.7% in the third quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company’s stock valued at $35,604,000 after purchasing an additional 75,358 shares during the last quarter. Finally, Compass Rose Asset Management LP purchased a new stake in VersaBank during the third quarter valued at about $720,000. 56.86% of the stock is owned by institutional investors and hedge funds.

VersaBank Price Performance

The stock has a 50-day simple moving average of $15.73 and a 200-day simple moving average of $14.63. The stock has a market cap of $600.29 million, a PE ratio of 26.66 and a beta of 1.11.

VersaBank (NASDAQ:VBNK) last posted its quarterly earnings results on Tuesday, March 3rd. The company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.27. VersaBank had a return on equity of 7.70% and a net margin of 10.03%.The firm had revenue of $26.80 million during the quarter, compared to the consensus estimate of $26.92 million. As a group, equities research analysts anticipate that VersaBank will post 1.27 EPS for the current year.

VersaBank Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Friday, April 10th were given a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Friday, April 10th. VersaBank’s dividend payout ratio is presently 10.00%.

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.