VersaBank (NASDAQ:VBNK) Stock Price Down 6.6% – Here’s Why

VersaBank (NASDAQ:VBNK)’s share price traded down 6.6% during mid-day trading on Thursday . The company traded as low as $18.30 and last traded at $18.74. 47,027 shares changed hands during trading, a decline of 21% from the average session volume of 59,616 shares. The stock had previously closed at $20.07.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Zacks Research upgraded shares of VersaBank from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Weiss Ratings raised shares of VersaBank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, May 1st. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, VersaBank currently has an average rating of “Hold” and a consensus price target of $13.00.

VersaBank Stock Performance

The stock’s 50-day moving average is $17.11 and its 200 day moving average is $15.53. The stock has a market capitalization of $619.13 million, a PE ratio of 27.87 and a beta of 1.10.

VersaBank (NASDAQ:VBNK) last posted 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. The firm had revenue of $28.17 million for the quarter, compared to the consensus estimate of $26.86 million. VersaBank had a net margin of 9.34% and a return on equity of 8.32%. Analysts expect that VersaBank will post 1.27 earnings per share for the current year.

VersaBank Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 10th will be paid a dividend of $0.025 per share. The ex-dividend date is Friday, July 10th. This represents a $0.10 dividend on an annualized basis and a yield of 0.5%. VersaBank’s dividend payout ratio is currently 10.14%.

Institutional Trading of VersaBank

Large investors have recently bought and sold shares of the business. Connors Investor Services Inc. boosted its stake in VersaBank by 18.2% during the 3rd quarter. Connors Investor Services Inc. now owns 13,000 shares of the company’s stock worth $159,000 after purchasing an additional 2,000 shares during the period. Quadrature Capital Ltd acquired a new stake in VersaBank during the 4th quarter worth $201,000. Citadel Advisors LLC acquired a new stake in VersaBank during the 3rd quarter worth $198,000. Salzhauer Michael boosted its stake in VersaBank by 68.4% during the 2nd quarter. Salzhauer Michael now owns 16,843 shares of the company’s stock worth $192,000 after purchasing an additional 6,843 shares during the period. Finally, First Trust Advisors LP boosted its stake in VersaBank by 33.0% during the 2nd quarter. First Trust Advisors LP now owns 20,753 shares of the company’s stock worth $237,000 after purchasing an additional 5,144 shares during the period. Institutional investors and hedge funds own 56.86% of the company’s stock.

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.