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

VersaBank (NASDAQ:VBNK) was the recipient of a large growth in short interest in the month of November. As of November 30th, there was short interest totalling 43,800 shares, a growth of 35.2% from the November 15th total of 32,400 shares. Based on an average daily volume of 39,600 shares, the short-interest ratio is currently 1.1 days. Approximately 0.3% of the shares of the company are sold short.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pembroke Management LTD purchased a new position in shares of VersaBank in the second quarter worth $377,000. Acadian Asset Management LLC boosted its holdings in shares of VersaBank by 52.2% during the 2nd quarter. Acadian Asset Management LLC now owns 100,466 shares of the company’s stock valued at $1,067,000 after purchasing an additional 34,462 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of VersaBank by 44.7% in the second quarter. Dimensional Fund Advisors LP now owns 50,038 shares of the company’s stock worth $540,000 after purchasing an additional 15,462 shares during the last quarter. ELCO Management Co. LLC lifted 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 worth $892,000 after buying an additional 3,234 shares in the last quarter. Finally, Mendon Capital Advisors Corp boosted its stake in VersaBank by 6.1% during the second quarter. Mendon Capital Advisors Corp now owns 84,056 shares of the company’s stock valued at $904,000 after buying an additional 4,817 shares during the last quarter. 56.86% of the stock is currently owned by institutional investors.

VersaBank Stock Performance

Shares of VBNK stock opened at $15.39 on Friday. The stock has a fifty day simple moving average of $15.96 and a two-hundred day simple moving average of $13.23. The firm has a market capitalization of $400.14 million, a PE ratio of 13.99 and a beta of 0.83. VersaBank has a 52-week low of $8.90 and a 52-week high of $18.38.

VersaBank Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Friday, January 10th will be paid a dividend of $0.0177 per share. This represents a $0.07 annualized dividend and a yield of 0.46%. The ex-dividend date is Friday, January 10th. VersaBank’s dividend payout ratio (DPR) is presently 6.36%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Roth Mkm started coverage on shares of VersaBank in a research report on Friday, September 27th. They set a “buy” rating and a $18.00 price objective for the company. Raymond James reissued an “outperform” rating and set a $17.00 price target (up previously from $15.00) on shares of VersaBank in a report on Friday, November 8th. Keefe, Bruyette & Woods initiated coverage on VersaBank in a research note on Tuesday, August 27th. They issued an “outperform” rating and a $22.00 price objective on the stock. Finally, Roth Capital raised VersaBank to a “strong-buy” rating in a research report on Friday, September 27th. Three investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $19.00.

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.