VersaBank (NASDAQ:VBNK) Hits New 1-Year High on Analyst Upgrade

Shares of VersaBank (NASDAQ:VBNK) hit 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 stock traded as high as $16.99 and last traded at $16.48, with a volume of 44792 shares trading hands. The stock had previously closed at $16.40.

A number of other equities analysts also recently weighed in on VBNK. Weiss Ratings reaffirmed a “hold (c)” rating on shares of VersaBank in a research note on Wednesday, January 21st. Roth Mkm raised their price target on shares of VersaBank from $10.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, December 11th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $13.00.

Hedge Funds Weigh In On VersaBank

Several large investors have recently bought and sold shares of the business. Royal Bank of Canada raised its position in shares of VersaBank by 107.2% during the 1st quarter. Royal Bank of Canada now owns 56,371 shares of the company’s stock valued at $585,000 after acquiring an additional 29,169 shares during the last quarter. Connors Investor Services Inc. acquired a new stake in shares of VersaBank during the second quarter worth $125,000. Pembroke Management LTD increased its holdings in VersaBank by 27.3% in the second quarter. Pembroke Management LTD now owns 429,607 shares of the company’s stock valued at $4,898,000 after purchasing an additional 92,262 shares during the last quarter. Geode Capital Management LLC acquired a new position in VersaBank in the second quarter valued at about $293,000. Finally, TD Waterhouse Canada Inc. boosted its holdings in VersaBank by 13.5% during the second quarter. TD Waterhouse Canada Inc. now owns 140,311 shares of the company’s stock worth $1,604,000 after buying an additional 16,739 shares during the last quarter. 56.86% of the stock is currently owned by institutional investors and hedge funds.

VersaBank Stock Performance

The company has a market capitalization of $511.52 million, a price-to-earnings ratio of 24.63 and a beta of 0.95. The company has a 50-day moving average price of $15.15 and a 200-day moving average price of $12.92.

VersaBank (NASDAQ:VBNK) last announced its quarterly earnings results on Wednesday, December 10th. The company reported $0.24 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.24. The business had revenue of $25.05 million for the quarter, compared to the consensus estimate of $24.48 million. VersaBank had a net margin of 9.33% and a return on equity of 7.02%. As a group, sell-side analysts anticipate that VersaBank will post 1.46 earnings per share for the current fiscal year.

VersaBank Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Saturday, January 31st. Stockholders of record on Friday, January 9th were issued a $0.025 dividend. The ex-dividend date of this dividend was Friday, January 9th. This represents a $0.10 annualized dividend and a dividend yield of 0.6%. VersaBank’s payout ratio is 10.77%.

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.