VersaBank (NASDAQ:VBNK) Stock Price Down 3.7% – Should You Sell?

VersaBank (NASDAQ:VBNK)’s stock price fell 3.7% on Thursday . The stock traded as low as $22.92 and last traded at $22.8410. Approximately 19,344 shares were traded during trading, a decline of 72% from the average session volume of 69,510 shares. The stock had previously closed at $23.72.

Analyst Ratings Changes

VBNK has been the topic of a number of research reports. Weiss Ratings lowered shares of VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, June 9th. Zacks Research raised VersaBank from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Finally, Roth Mkm raised VersaBank from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $20.00 to $25.00 in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, VersaBank presently has a consensus rating of “Hold” and an average target price of $25.00.

VersaBank Price Performance

The business has a 50-day moving average of $18.74 and a 200-day moving average of $16.54. The firm has a market cap of $719.83 million, a price-to-earnings ratio of 32.48 and a beta of 1.04.

VersaBank (NASDAQ:VBNK) last announced its quarterly earnings data on Wednesday, June 3rd. The company reported $0.28 earnings per share (EPS) for the quarter, topping 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 company had revenue of $28.17 million for the quarter, compared to analysts’ expectations of $26.86 million. As a group, equities analysts anticipate that VersaBank will post 1.3 EPS for the current fiscal year.

VersaBank Dividend Announcement

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 issued 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 0.4%. VersaBank’s dividend payout ratio (DPR) is presently 10.14%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Royal Bank of Canada increased its holdings in shares of VersaBank by 107.2% in the first quarter. Royal Bank of Canada now owns 56,371 shares of the company’s stock valued at $585,000 after purchasing an additional 29,169 shares during the last quarter. Geode Capital Management LLC acquired a new stake in VersaBank during the second quarter worth approximately $293,000. First Trust Advisors LP grew its position in shares of VersaBank by 33.0% in the second 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 during the last quarter. Alliancebernstein L.P. increased its stake in shares of VersaBank by 1.1% during the second quarter. Alliancebernstein L.P. now owns 2,840,626 shares of the company’s stock worth $32,383,000 after purchasing an additional 29,613 shares during the period. Finally, Mendon Capital Advisors Corp boosted its stake in VersaBank by 4.0% in the 2nd quarter. Mendon Capital Advisors Corp now owns 1,052,650 shares of the company’s stock valued at $12,000,000 after purchasing an additional 40,127 shares during the period. 56.86% of the stock is owned by institutional investors and hedge funds.

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.