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

VersaBank (NASDAQ:VBNK) was the target of a significant decrease in short interest during the month of June. As of June 15th, there was short interest totaling 241,570 shares, a decrease of 39.1% from the May 31st total of 396,968 shares. Based on an average daily volume of 114,727 shares, the short-interest ratio is currently 2.1 days. Approximately 0.8% of the shares of the company are short sold.

Institutional Investors Weigh In On VersaBank

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Alliancebernstein L.P. grew its stake in VersaBank by 2.7% during the third quarter. Alliancebernstein L.P. now owns 2,915,984 shares of the company’s stock valued at $35,604,000 after acquiring an additional 75,358 shares in the last quarter. Mendon Capital Advisors Corp lifted its stake in VersaBank by 2.6% in the 4th quarter. Mendon Capital Advisors Corp now owns 1,057,693 shares of the company’s stock worth $15,392,000 after purchasing an additional 26,559 shares in the last quarter. Curi Capital LLC boosted its holdings in VersaBank by 5.0% in the 2nd quarter. Curi Capital LLC now owns 800,000 shares of the company’s stock valued at $9,120,000 after purchasing an additional 38,337 shares during the period. Pembroke Management LTD boosted its holdings in VersaBank by 40.7% in the 4th quarter. Pembroke Management LTD now owns 736,222 shares of the company’s stock valued at $11,029,000 after purchasing an additional 213,037 shares during the period. Finally, TCW Group Inc. grew its position in shares of VersaBank by 8.2% during the 4th quarter. TCW Group Inc. now owns 674,277 shares of the company’s stock valued at $10,101,000 after purchasing an additional 50,900 shares in the last quarter. 56.86% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on VBNK. Zacks Research raised VersaBank from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Weiss Ratings downgraded VersaBank from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, June 9th. Finally, Roth Mkm raised VersaBank from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $20.00 to $25.00 in a report on Tuesday. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $25.00.

VersaBank Trading Up 2.6%

Shares of VBNK stock traded up $0.61 during trading on Wednesday, reaching $23.82. 72,460 shares of the company’s stock traded hands, compared to its average volume of 68,253. The firm’s 50-day moving average is $18.62 and its 200 day moving average is $16.47. The company has a market capitalization of $767.00 million, a P/E ratio of 34.52 and a beta of 1.10. VersaBank has a 1 year low of $10.10 and a 1 year high of $25.05.

VersaBank (NASDAQ:VBNK) last posted its quarterly earnings results on Wednesday, June 3rd. The company reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.02. The firm had revenue of $28.17 million during the quarter, compared to analyst estimates of $26.86 million. VersaBank had a return on equity of 8.32% and a net margin of 9.34%. As a group, sell-side analysts predict that VersaBank will post 1.3 earnings per share for the current fiscal year.

VersaBank Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 10th will be paid a $0.025 dividend. The ex-dividend date is Friday, July 10th. This represents a $0.10 annualized dividend and a yield of 0.4%. VersaBank’s dividend payout ratio (DPR) is currently 10.14%.

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.