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: $10.80 to $11.17
• 50-Day Range: $8.89 to $13.18
• 52-Week Range: $8.51 to $18.38
• Volume: 91,062 shs
• Average Volume: 65,951 shs
• Market Capitalization: $359.01 million
• P/E Ratio: 10.04
• Dividend Yield: 0.54%
• Price Target: $14.95
• Consensus Rating: Moderate Buy

VersaBank Stock Analysis - MarketRank™

VersaBank scored higher than 88% of companies evaluated by MarketBeat, and ranked 321st out of 949 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: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

VersaBank has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

VersaBank has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.8 / 5
• Proj. Earnings Growth: 52.74%

Earnings Growth

Earnings for VersaBank are expected to grow by 52.74% in the coming year, from $1.46 to $2.23 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of VersaBank is 10.04, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 21.76.

Price to Earnings Ratio vs. Sector

The P/E ratio of VersaBank is 10.04, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 21.97.

Price to Book Value per Share Ratio

VersaBank has a P/B Ratio of 0.98. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

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

Percentage of Shares Shorted

0.47% 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 0.9, 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 11.30%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

VersaBank has a dividend yield of 0.62%, 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 6.38%. 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 2.69% 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

0.47% 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 0.9, 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 11.30%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.9 / 5
• News Sentiment: 1.17

News Sentiment

VersaBank has a news sentiment score of 1.17. 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 is a higher news sentiment than the 0.88 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 8 news articles for VersaBank this week, compared to 2 articles on an average week.

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 $13.85 on January 1st, 2025. Since then, VBNK shares have decreased by 20.3% and is now trading at $11.04.
View the best growth stocks for 2025 here.

How were VersaBank's earnings last quarter?

VersaBank (NASDAQ:VBNK) issued its quarterly earnings data on Monday, December, 9th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.01. VersaBank had a trailing twelve-month return on equity of 11.20% and a net margin of 13.52%.
Read the conference call transcript.

When did VersaBank IPO?

VersaBank (VBNK) raised $50 million in an initial public offering (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?

Top institutional shareholders of VersaBank include Cox Capital Mgt LLC (0.56%) and Canton Hathaway LLC (0.01%).

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.

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: 12/09/2024
• Record date for 1/31 Dividend: 1/10/2025
• Ex-Dividend for 1/31 Dividend: 1/10/2025
• Dividend Payable: 1/31/2025
• Record date for 4/30 Dividend: 4/04/2025
• Ex-Dividend for 4/30 Dividend: 4/04/2025
• Today: 4/29/2025
• Dividend Payable: 4/30/2025
• Next Earnings (Estimated): 6/04/2025
• 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
• 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: $14.95
• High Stock Price Target: $22.00
• Low Stock Price Target: $10.40
• Potential Upside/Downside: +35.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.94
• Trailing P/E Ratio: 10.04
• Forward P/E Ratio: 7.56
• P/E Growth: N/A
• Net Income: $29.20 million
• Net Margins: 13.52%
• Pretax Margin: 18.61%
• Return on Equity: 11.20%
• Return on Assets: 0.99%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.05
• Quick Ratio: 1.05

Sales & Book Value

• Annual Sales: $110.61 million
• Price / Sales: 3.25
• Cash Flow: $1.13 per share
• Price / Cash Flow: 9.78
• Book Value: $11.28 per share
• Price / Book: 0.98

Miscellaneous

• Outstanding Shares: 32,519,000
• Free Float: 30,792,000
• Market Cap: $359.01 million
• Optionable: Not Optionable
• Beta: 1.01