Unity Bancorp (NASDAQ:UNTY) Earns “Buy” Rating from DA Davidson

Unity Bancorp (NASDAQ:UNTY)‘s stock had its “buy” rating restated by investment analysts at DA Davidson in a research report issued on Tuesday, Benzinga reports. They currently have a $68.00 price objective on the financial services provider’s stock. DA Davidson’s price objective points to a potential upside of 21.17% from the company’s previous close.

A number of other research analysts have also recently issued reports on the company. Piper Sandler boosted their target price on Unity Bancorp from $65.00 to $68.00 and gave the company an “overweight” rating in a research note on Friday, June 26th. Freedom Capital raised Unity Bancorp from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Weiss Ratings reissued a “buy (b+)” rating on shares of Unity Bancorp in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $65.50.

Unity Bancorp Trading Up 1.4%

NASDAQ:UNTY traded up $0.75 on Tuesday, reaching $56.12. The company’s stock had a trading volume of 21,978 shares, compared to its average volume of 54,467. Unity Bancorp has a 1-year low of $44.34 and a 1-year high of $62.50. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.17 and a current ratio of 1.17. The firm has a market cap of $563.62 million, a PE ratio of 9.76 and a beta of 0.65. The business’s 50-day moving average price is $58.25 and its two-hundred day moving average price is $56.28.

Unity Bancorp (NASDAQ:UNTY) last posted its earnings results on Tuesday, October 13th. The financial services provider reported $1.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.49 by $0.02. Unity Bancorp had a return on equity of 16.10% and a net margin of 30.26%. The firm had revenue of $36.65 million during the quarter, compared to analysts’ expectations of $35.63 million. Equities research analysts anticipate that Unity Bancorp will post 5.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Bancorp

In other news, President George Boyan sold 6,504 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $59.16, for a total transaction of $384,776.64. Following the completion of the transaction, the president directly owned 25,015 shares of the company’s stock, valued at $1,479,887.40. This represents a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 28.87% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Bancorp

Several hedge funds have recently made changes to their positions in the business. Public Employees Retirement System of Ohio grew its stake in shares of Unity Bancorp by 17.3% during the 1st quarter. Public Employees Retirement System of Ohio now owns 3,391 shares of the financial services provider’s stock worth $176,000 after acquiring an additional 500 shares in the last quarter. Legal & General Group Plc bought a new position in shares of Unity Bancorp during the 2nd quarter worth approximately $44,000. Inspire Investing LLC grew its stake in shares of Unity Bancorp by 9.4% during the 1st quarter. Inspire Investing LLC now owns 9,945 shares of the financial services provider’s stock worth $515,000 after acquiring an additional 851 shares in the last quarter. Hsbc Holdings PLC grew its stake in shares of Unity Bancorp by 22.0% during the 2nd quarter. Hsbc Holdings PLC now owns 8,676 shares of the financial services provider’s stock worth $509,000 after acquiring an additional 1,563 shares in the last quarter. Finally, Allworth Financial LP bought a new position in shares of Unity Bancorp during the 2nd quarter worth approximately $92,000. 42.31% of the stock is owned by institutional investors.

Unity Bancorp News Summary

Here are the key news stories impacting Unity Bancorp this week:

• Positive Sentiment: Third-quarter earnings exceeded estimates. Earnings coverage cited EPS of $1.51 versus the $1.49 consensus estimate, while revenue of $36.65 million topped expectations of $35.63 million. EPS increased from $1.33 a year earlier. Unity Bancorp Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Reported net income rose sharply. Unity Bancorp said third-quarter net income reached $17.4 million, or $1.70 per diluted share, compared with $14.5 million, or $1.42 per share, in the second quarter. Nine-month net income increased to $46.1 million from $42.5 million a year earlier. Unity Bancorp Reports Quarterly Earnings of $17.4 Million
• Positive Sentiment: Core banking trends remained favorable. Management highlighted robust loan and deposit growth, higher net interest income, an expanded net interest margin and improved asset quality. DA Davidson also reaffirmed its “Buy” rating and maintained a $68 price target, implying meaningful upside from recent trading levels. DA Davidson Unity Bancorp Rating
• Neutral Sentiment: Part of the earnings strength came from a one-time tax benefit. The purchase of transferable federal investment tax credits reduced tax expense and contributed $2.5 million to quarterly earnings. Management said underlying performance remained strong, but this benefit may not recur.
• Negative Sentiment: Forward-looking risks remain. Unity noted shifting interest-rate expectations and intense competition for deposits, which could pressure funding costs and future margins. A planned leadership transition to President George Boyan next year also introduces an execution consideration for investors.

About Unity Bancorp

Unity Bancorp, Inc is the bank holding company for Unity Bank, a community-focused financial institution serving individuals, families and businesses in New Jersey and eastern Pennsylvania. Headquartered in Clinton, New Jersey, Unity Bank operates through a network of branches and provides relationship-based banking services to customers in its local markets.

The bank offers a range of deposit products, including checking, savings, money market accounts and certificates of deposit. Its lending activities include commercial and industrial loans, commercial real estate financing, residential mortgages, home equity loans and consumer loans.