Unity Bancorp (NASDAQ:UNTY) Sees Strong Trading Volume – Still a Buy?

Shares of Unity Bancorp, Inc. (NASDAQ:UNTY) saw strong trading volume on Tuesday . 30,124 shares traded hands during trading, a decline of 42% from the previous session’s volume of 51,926 shares.The stock last traded at $56.3930 and had previously closed at $57.35.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Weiss Ratings raised shares of Unity Bancorp from a “buy (b)” rating to a “buy (b+)” rating in a research note on Monday, May 4th. Freedom Capital raised shares of Unity Bancorp to a “hold” rating in a research report on Friday, July 3rd. DA Davidson began coverage on shares of Unity Bancorp in a report on Friday, May 15th. They issued a “buy” rating and a $68.00 price target for the company. Piper Sandler upped their price objective on shares of Unity Bancorp from $65.00 to $68.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Finally, Brean Capital initiated coverage on Unity Bancorp in a research note on Wednesday, April 22nd. They set a “buy” rating and a $61.00 price objective on the stock. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $65.50.

Unity Bancorp Stock Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.17 and a quick ratio of 1.17. The stock’s 50 day simple moving average is $55.42 and its two-hundred day simple moving average is $53.83. The stock has a market cap of $550.39 million, a P/E ratio of 9.23 and a beta of 0.62.

Unity Bancorp (NASDAQ:UNTY) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.44 by ($0.02). Unity Bancorp had a net margin of 31.33% and a return on equity of 16.06%. As a group, research analysts forecast that Unity Bancorp, Inc. will post 5.84 EPS for the current year.

Unity Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, June 4th were given a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, June 4th. Unity Bancorp’s payout ratio is currently 10.77%.

Insiders Place Their Bets

In other Unity Bancorp news, Director Mark S. Brody sold 1,600 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $55.23, for a total transaction of $88,368.00. Following the completion of the transaction, the director owned 113,854 shares in the company, valued at approximately $6,288,156.42. This represents a 1.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mary E. Gross sold 2,075 shares of Unity Bancorp stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $56.01, for a total value of $116,220.75. Following the completion of the sale, the director directly owned 18,479 shares in the company, valued at $1,035,008.79. This represents a 10.10% decrease in their position. The SEC filing for this sale provides additional information. 28.87% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Unity Bancorp

Hedge funds and other institutional investors have recently bought and sold shares of the company. Squarepoint Ops LLC lifted its stake in Unity Bancorp by 600.2% in the 4th quarter. Squarepoint Ops LLC now owns 40,327 shares of the financial services provider’s stock valued at $2,086,000 after acquiring an additional 34,568 shares in the last quarter. Two Sigma Investments LP raised its holdings in shares of Unity Bancorp by 115.9% in the third quarter. Two Sigma Investments LP now owns 50,920 shares of the financial services provider’s stock valued at $2,488,000 after purchasing an additional 27,340 shares during the last quarter. Marshall Wace LLP raised its holdings in shares of Unity Bancorp by 300.8% in the second quarter. Marshall Wace LLP now owns 29,898 shares of the financial services provider’s stock valued at $1,408,000 after purchasing an additional 22,439 shares during the last quarter. Wesbanco Bank Inc. bought a new stake in shares of Unity Bancorp in the first quarter worth $1,083,000. Finally, Kennedy Capital Management LLC lifted its position in shares of Unity Bancorp by 32.8% in the fourth quarter. Kennedy Capital Management LLC now owns 78,738 shares of the financial services provider’s stock worth $4,072,000 after purchasing an additional 19,468 shares in the last quarter. Institutional investors and hedge funds own 42.31% of the company’s stock.

Unity Bancorp Company Profile

Unity Bancorp, Inc is a bank holding company headquartered in Morrisville, Pennsylvania, trading on the NASDAQ under the ticker UNTY. Through its primary subsidiary, Unity Bank, the company delivers a comprehensive suite of commercial and retail banking services to individuals, businesses and municipal clients in its regional markets.

Founded in 1906, Unity Bank maintains a network of conveniently located branches across Bucks County and adjacent areas of southeastern Pennsylvania. The company’s deposit portfolio includes checking and savings accounts, money market accounts and certificates of deposit, while its loan offerings encompass commercial real estate, construction and land development, agricultural and consumer lending solutions.

Beyond traditional deposit and lending activities, Unity Bancorp provides cash management and merchant services, as well as internet and mobile banking platforms designed to streamline day-to-day financial operations.