VersaBank (NASDAQ:VBNK) Cut to Hold at Roth Capital

Roth Capital cut shares of VersaBank (NASDAQ:VBNK) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks.com reports. Roth Capital also issued estimates for VersaBank’s Q3 2025 earnings at $0.33 EPS.

Other analysts have also issued research reports about the stock. Roth Mkm lowered shares of VersaBank from a “buy” rating to a “neutral” rating and cut their target price for the company from $22.00 to $10.40 in a research report on Thursday. Raymond James reissued an “outperform” rating and set a $17.00 price objective (up previously from $15.00) on shares of VersaBank in a report on Friday, November 8th.

VersaBank Stock Performance

VersaBank stock opened at $10.52 on Wednesday. The stock has a fifty day moving average of $13.27 and a 200-day moving average of $14.17. The stock has a market capitalization of $342.10 million, a P/E ratio of 9.56 and a beta of 0.93. VersaBank has a 52 week low of $9.48 and a 52 week high of $18.38.

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

VersaBank Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Friday, April 4th will be given a dividend of $0.025 per share. The ex-dividend date is Friday, April 4th. This is an increase from VersaBank’s previous quarterly dividend of $0.02. This represents a $0.10 annualized dividend and a yield of 0.95%. VersaBank’s dividend payout ratio (DPR) is currently 6.38%.

Hedge Funds Weigh In On VersaBank

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. TCW Group Inc. bought a new stake in shares of VersaBank in the fourth quarter worth $4,155,000. Barclays PLC acquired a new position in VersaBank during the 3rd quarter worth about $32,000. Pembroke Management LTD grew its position 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 buying an additional 281,900 shares during the last quarter. Round Rock Advisors LLC bought a new stake in shares of VersaBank in the 4th quarter valued at about $273,000. Finally, K2 Principal Fund L.P. acquired a new stake in shares of VersaBank in the third quarter valued at about $211,000. 56.86% of the stock is currently owned by institutional investors and hedge funds.

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.