VersaBank (NASDAQ:VBNK) Sees Strong Trading Volume on Better-Than-Expected Earnings

VersaBank (NASDAQ:VBNK) saw an uptick in trading volume on Wednesday following a better than expected earnings announcement. 58,828 shares changed hands during mid-day trading, an increase of 5% from the previous session’s volume of 56,001 shares.The stock last traded at $18.99 and had previously closed at $18.13.

The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.02. VersaBank had a net margin of 9.34% and a return on equity of 8.41%. The firm had revenue of $28.17 million for the quarter, compared to analyst estimates of $26.86 million.

VersaBank Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 10th will be issued a $0.025 dividend. The ex-dividend date is Friday, July 10th. This represents a $0.10 annualized dividend and a yield of 0.5%. VersaBank’s dividend payout ratio (DPR) is 10.00%.

Analyst Ratings Changes

Several brokerages have recently issued reports on VBNK. Weiss Ratings raised VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research 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 investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $13.00.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of VBNK. Compass Rose Asset Management LP purchased a new stake in VersaBank in the third quarter worth about $720,000. CSM Advisors LLC purchased a new position in shares of VersaBank during the third quarter valued at approximately $3,418,000. Militia Capital Partners LP boosted its position in shares of VersaBank by 16.7% in the 3rd quarter. Militia Capital Partners LP now owns 70,000 shares of the company’s stock worth $855,000 after purchasing an additional 10,000 shares in the last quarter. Benjamin Edwards Inc. bought a new stake in shares of VersaBank in the 2nd quarter worth approximately $413,000. Finally, Geode Capital Management LLC purchased a new stake in shares of VersaBank in the 2nd quarter worth approximately $293,000. 56.86% of the stock is owned by hedge funds and other institutional investors.

VersaBank Trading Down 5.4%

The company has a market cap of $611.48 million, a PE ratio of 27.52 and a beta of 1.10. The firm has a 50 day moving average of $17.00 and a two-hundred day moving average of $15.51.

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.