VersaBank (NASDAQ:VBNK) Sees Large Decline in Short Interest

VersaBank (NASDAQ:VBNK) saw a significant drop in short interest in the month of June. As of June 15th, there was short interest totaling 241,570 shares, a drop of 39.1% from the May 31st total of 396,968 shares. Approximately 0.8% of the shares of the stock are short sold. Based on an average daily trading volume, of 114,727 shares, the short-interest ratio is currently 2.1 days.

VersaBank Stock Up 2.6%

Shares of NASDAQ VBNK traded up $0.61 during mid-day trading on Wednesday, reaching $23.82. 72,460 shares of the company were exchanged, compared to its average volume of 68,253. VersaBank has a 52 week low of $10.10 and a 52 week high of $25.05. The company’s 50 day moving average price is $18.62 and its 200 day moving average price is $16.47. The stock has a market capitalization of $767.00 million, a PE ratio of 34.52 and a beta of 1.10.

VersaBank (NASDAQ:VBNK) last released its earnings results on Wednesday, June 3rd. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.02. VersaBank had a return on equity of 8.32% and a net margin of 9.34%.The business had revenue of $28.17 million for the quarter, compared to analysts’ expectations of $26.86 million. On average, sell-side analysts predict that VersaBank will post 1.3 earnings per share for the current year.

VersaBank Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 10th will be given a dividend of $0.025 per share. The ex-dividend date is Friday, July 10th. This represents a $0.10 annualized dividend and a dividend yield of 0.4%. VersaBank’s dividend payout ratio is 10.14%.

Institutional Trading of VersaBank

A number of hedge funds have recently bought and sold shares of VBNK. Connors Investor Services Inc. boosted its stake in VersaBank by 18.2% in the third quarter. Connors Investor Services Inc. now owns 13,000 shares of the company’s stock worth $159,000 after buying an additional 2,000 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of 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 in the last quarter. Salzhauer Michael grew its holdings in shares of VersaBank by 68.4% during 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. TD Waterhouse Canada Inc. grew its holdings in shares of VersaBank by 5.5% during the 4th quarter. TD Waterhouse Canada Inc. now owns 156,540 shares of the company’s stock valued at $2,316,000 after purchasing an additional 8,149 shares during the last quarter. Finally, Militia Capital Partners LP raised its position in 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 during the period. Institutional investors own 56.86% of the company’s stock.

Analysts Set New Price Targets

Several analysts have weighed in on VBNK shares. Zacks Research raised VersaBank from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Roth Mkm raised VersaBank from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $20.00 to $25.00 in a report on Tuesday. Finally, Weiss Ratings cut shares of VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, June 9th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, VersaBank presently has a consensus rating of “Hold” and a consensus target price of $25.00.

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.