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

VersaBank (NASDAQ:VBNK) was the recipient of a significant growth in short interest during the month of September. As of September 15th, there was short interest totaling 333,727 shares, a growth of 47.9% from the August 31st total of 225,630 shares. Based on an average daily volume of 159,860 shares, the short-interest ratio is currently 2.1 days. Currently, 1.1% of the shares of the company are sold short.

VersaBank Trading Up 0.2%

VersaBank stock opened at $22.22 on Thursday. VersaBank has a 12-month low of $11.25 and a 12-month high of $25.05. The firm has a market capitalization of $718.37 million, a price-to-earnings ratio of 29.24 and a beta of 1.06. The firm has a 50 day moving average of $20.76 and a 200 day moving average of $19.00.

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

VersaBank Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Shareholders of record on Friday, October 9th will be issued a dividend of C$0.03 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $0.10 dividend on an annualized basis and a yield of 0.5%. VersaBank’s dividend payout ratio (DPR) is currently 9.21%.

Hedge Funds Weigh In On VersaBank

A number of hedge funds have recently made changes to their positions in the business. K2 Principal Fund L.P. bought a new stake in VersaBank during the 2nd quarter valued at approximately $239,000. BlackRock Inc. purchased a new stake in VersaBank during the 2nd quarter valued at approximately $274,000. Sei Investments Co. raised its position in shares of VersaBank by 100.0% during the first quarter. Sei Investments Co. now owns 36,578 shares of the company’s stock valued at $518,000 after buying an additional 18,289 shares during the last quarter. Bank of America Corp DE purchased a new position in shares of VersaBank in the second quarter worth $1,133,000. Finally, Brasada Capital Management LP bought a new position in shares of VersaBank during the second quarter worth $1,606,000. Institutional investors own 56.86% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on VBNK shares. Weiss Ratings raised shares of VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, September 18th. Raymond James Financial set a $20.00 price objective on VersaBank in a research report on Thursday, September 3rd. Zacks Research downgraded VersaBank from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 18th. Finally, Roth Capital increased their price objective on shares of VersaBank from $25.00 to $28.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, VersaBank has an average rating of “Moderate Buy” and an average target price of $24.00.

VersaBank Company Profile

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.