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

VersaBank (NASDAQ:VBNK) was the target of a large decline in short interest in the month of September. As of September 30th, there was short interest totalling 13,700 shares, a decline of 18.5% from the September 15th total of 16,800 shares. Currently, 0.1% of the shares of the company are sold short. Based on an average trading volume of 38,900 shares, the short-interest ratio is presently 0.4 days.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on VBNK. Roth Capital raised VersaBank to a “strong-buy” rating in a research report on Friday, September 27th. Keefe, Bruyette & Woods began coverage on VersaBank in a report on Tuesday, August 27th. They set an “outperform” rating and a $22.00 target price on the stock. Finally, Roth Mkm began coverage on VersaBank in a report on Friday, September 27th. They issued a “buy” rating and a $18.00 price target for the company. Three equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $16.67.

VersaBank Trading Up 4.9 %

NASDAQ VBNK opened at $14.95 on Friday. The stock has a market capitalization of $388.10 million, a price-to-earnings ratio of 11.50 and a beta of 0.79. The stock has a 50-day moving average of $12.80 and a 200 day moving average of $11.26. VersaBank has a twelve month low of $7.24 and a twelve month high of $15.71.

VersaBank (NASDAQ:VBNK) last announced its earnings results on Thursday, September 5th. The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.08). VersaBank had a return on equity of 11.85% and a net margin of 16.24%. The business had revenue of $19.72 million for the quarter, compared to analyst estimates of $21.83 million. Equities analysts predict that VersaBank will post 1.21 EPS for the current fiscal year.

VersaBank Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 31st. Stockholders of record on Friday, October 4th will be paid a dividend of $0.018 per share. The ex-dividend date is Friday, October 4th. This represents a $0.07 dividend on an annualized basis and a dividend yield of 0.48%. VersaBank’s dividend payout ratio is currently 5.38%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of VBNK. Cumberland Partners Ltd acquired a new stake in VersaBank during the 1st quarter worth $472,000. Acadian Asset Management LLC grew its stake in VersaBank by 52.4% during the 1st quarter. Acadian Asset Management LLC now owns 66,004 shares of the company’s stock valued at $689,000 after acquiring an additional 22,699 shares in the last quarter. Wellington Management Group LLP raised its holdings in VersaBank by 287.0% in the 4th quarter. Wellington Management Group LLP now owns 124,283 shares of the company’s stock valued at $1,357,000 after acquiring an additional 92,166 shares during the last quarter. Mendon Capital Advisors Corp lifted its stake in VersaBank by 6.1% in the 2nd quarter. Mendon Capital Advisors Corp now owns 84,056 shares of the company’s stock worth $904,000 after purchasing an additional 4,817 shares in the last quarter. Finally, ELCO Management Co. LLC grew its position in shares of VersaBank by 4.1% in the second quarter. ELCO Management Co. LLC now owns 82,942 shares of the company’s stock valued at $892,000 after purchasing an additional 3,234 shares in the last quarter. 56.86% of the stock is owned by hedge funds and other institutional investors.

About VersaBank

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages.