VersaBank (VBNK) Stock Price, News & Analysis

Company Overview

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. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.

Key Stats

• Today's Range: $16.20 to $16.52
• 50-Day Range: $12.67 to $16.86
• 52-Week Range: $7.52 to $17.06
• Volume: 11,150 shs
• Average Volume: 30,316 shs
• Market Capitalization: $428.76 million
• P/E Ratio: 12.70
• Dividend Yield: 0.42%
• Price Target: $19.00
• Consensus Rating: Buy

VersaBank Stock Analysis - MarketRank™

VersaBank scored higher than 80% of companies evaluated by MarketBeat, and ranked 271st out of 958 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.6 / 5
• Analyst Rating: Buy

Consensus Rating

VersaBank has received a consensus rating of Buy. The company's average rating score is 3.25, and is based on 3 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

VersaBank has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 39.67%

Earnings Growth

Earnings for VersaBank are expected to grow by 39.67% in the coming year, from $1.21 to $1.69 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of VersaBank is 12.70, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 123.56.

Price to Earnings Ratio vs. Sector

The P/E ratio of VersaBank is 12.70, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 30.79.

Price to Book Value per Share Ratio

VersaBank has a P/B Ratio of 1.53. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.16% of the float of VersaBank has been sold short.

Short Interest Ratio / Days to Cover

VersaBank has a short interest ratio ("days to cover") of 0.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in VersaBank has recently decreased by 27.72%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

VersaBank has a dividend yield of 0.45%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

VersaBank does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of VersaBank is 5.38%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, VersaBank will have a dividend payout ratio of 4.14% next year. This indicates that VersaBank will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.16% of the float of VersaBank has been sold short.

Short Interest Ratio / Days to Cover

VersaBank has a short interest ratio ("days to cover") of 0.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in VersaBank has recently decreased by 27.72%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.1 / 5
• News Sentiment: 0.73

News Sentiment

VersaBank has a news sentiment score of 0.73. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Finance companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for VersaBank this week, compared to 1 article on an average week.

Search Interest

Only 1 people have searched for VBNK on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

Company Ownership

• Score: 0.8 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, VersaBank insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 5.29% of the stock of VersaBank is held by insiders.

Percentage Held by Institutions

56.86% of the stock of VersaBank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

VBNK Stock Analysis - Frequently Asked Questions

How have VBNK shares performed this year?

VersaBank's stock was trading at $10.95 at the beginning of the year. Since then, VBNK shares have increased by 50.8% and is now trading at $16.51.
View the best growth stocks for 2024 here.

How were VersaBank's earnings last quarter?

VersaBank (NASDAQ:VBNK) released its quarterly earnings data 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. The business had revenue of $19.72 million for the quarter, compared to the consensus estimate of $21.83 million. VersaBank had a net margin of 16.24% and a trailing twelve-month return on equity of 11.85%.

When did VersaBank IPO?

VersaBank (VBNK) raised $50 million in an IPO on Wednesday, September 22nd 2021. The company issued 4,800,000 shares at $10.37 per share. Raymond James served as the underwriter for the IPO and Keefe Bruyette & Woods (A Stifel Company) was co-manager.

Who are VersaBank's major shareholders?

VersaBank's top institutional shareholders include Curi RMB Capital LLC (1.72%), Rosenthal Henry Capital Advisors Inc. (0.77%), Cox Capital Mgt LLC (0.73%) and National Bank of Canada FI (0.47%).

How do I buy shares of VersaBank?

Shares of VBNK stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of VersaBank own?

Based on aggregate information from My MarketBeat watchlists, some other companies that VersaBank investors own include PayPal (PYPL), Tesla (TSLA), ZIM Integrated Shipping Services (ZIM), CrowdStrike (CRWD), Meta Platforms (META), Taiwan Semiconductor Manufacturing (TSM) and Advanced Micro Devices (AMD).

Company Calendar

• Last Earnings: 9/05/2024
• Ex-Dividend for 10/31 Dividend: 10/04/2024
• Dividend Payable: 10/31/2024
• Today: 11/16/2024
• Next Earnings (Estimated): 12/11/2024
• Fiscal Year End: 10/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: Commercial banks, not elsewhere classified
• Sub-Industry: Banking
• Current Symbol: NASDAQ:VBNK
• CUSIP: N/A
• CIK: 1690639
• Web: www.versabank.com
• Phone: (519) 645-1919
• Fax: N/A
• Employees: 100
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $19.00
• High Stock Price Target: $22.00
• Low Stock Price Target: $17.00
• Potential Upside/Downside: +15.1%
• Consensus Rating: Buy
• Rating Score (0-4): 3.25
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.30
• Trailing P/E Ratio: 12.70
• Forward P/E Ratio: 13.64
• P/E Growth: N/A
• Net Income: $31.26 million
• Net Margins: 16.24%
• Pretax Margin: 22.02%
• Return on Equity: 11.85%
• Return on Assets: 1.07%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.10
• Quick Ratio: 1.10

Sales & Book Value

• Annual Sales: $176.45 million
• Price / Sales: 2.43
• Cash Flow: $1.27 per share
• Price / Cash Flow: 12.95
• Book Value: $10.77 per share
• Price / Book: 1.53

Miscellaneous

• Outstanding Shares: 25,970,000
• Free Float: 24,592,000
• Market Cap: $428.76 million
• Optionable: Not Optionable
• Beta: 0.76