Short Interest in VersaBank (NASDAQ:VBNK) Rises By 31.2%

VersaBank (NASDAQ:VBNK) was the recipient of a large growth in short interest during the month of January. As of January 15th, there was short interest totalling 79,000 shares, a growth of 31.2% from the December 31st total of 60,200 shares. Approximately 0.5% of the company’s shares are sold short. Based on an average trading volume of 99,600 shares, the days-to-cover ratio is currently 0.8 days.

Institutional Trading of VersaBank

Hedge funds have recently added to or reduced their stakes in the business. Pembroke Management LTD raised its holdings in shares of VersaBank by 554.2% in the 4th quarter. Pembroke Management LTD now owns 332,764 shares of the company’s stock valued at $4,609,000 after purchasing an additional 281,900 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in 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 buying an additional 15,462 shares in the last quarter. Round Rock Advisors LLC purchased a new stake in VersaBank during the fourth quarter worth $273,000. K2 Principal Fund L.P. bought a new stake in VersaBank during the 3rd quarter valued at $211,000. Finally, Mark Sheptoff Financial Planning LLC purchased a new position in shares of VersaBank in the 3rd quarter valued at $137,000. 56.86% of the stock is owned by hedge funds and other institutional investors.

VersaBank Trading Up 2.7 %

Shares of VBNK traded up $0.37 during trading hours on Friday, reaching $13.84. 188,030 shares of the company traded hands, compared to its average volume of 67,657. The stock’s fifty day moving average price is $14.63 and its 200 day moving average price is $13.95. The firm has a market cap of $449.94 million, a price-to-earnings ratio of 12.58 and a beta of 0.91. VersaBank has a 12-month low of $9.48 and a 12-month high of $18.38.

VersaBank (NASDAQ:VBNK) last released its quarterly earnings data on Monday, December 9th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. VersaBank had a net margin of 13.52% and a return on equity of 11.20%. On average, research analysts forecast that VersaBank will post 1.46 earnings per share for the current year.

VersaBank Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Friday, January 10th were issued a $0.0177 dividend. The ex-dividend date was Friday, January 10th. This represents a $0.07 annualized dividend and a dividend yield of 0.51%. VersaBank’s payout ratio is currently 6.36%.

Analyst Upgrades and Downgrades

Separately, Raymond James reiterated an “outperform” rating and set a $17.00 price target (up from $15.00) on shares of VersaBank in a report on Friday, November 8th.

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.