Exploring VersaBank (VBNK) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind VersaBank (VBNK) and what motivates their investment decisions? As of December 31, 2024, institutional investors hold a significant 34.87% of VersaBank's shares. Among the top institutional holders, AllianceBernstein L.P. holds approximately 2.71 million shares, while CIBC World Markets Inc. holds around 1.29 million shares. Private companies own about 33% of VersaBank, and individual investors also account for 33% of the ownership. Join us as we delve into the investor profile of VersaBank, exploring who is buying, selling, and holding the stock, and, more importantly, understanding the reasons behind their investment strategies.

VersaBank (VBNK) Who Invests in [Company Name] and Why?

Understanding the investor profile of VersaBank (VBNK) provides valuable insights into the market's perception of the company and its future prospects. VersaBank's stock ownership is distributed among various investor types, each with their own motivations and strategies.

The ownership structure of VersaBank (VBNK) stock is a mix of institutional, retail, and individual investors. Approximately 2.67% of the company's stock is owned by Institutional Investors, 54.02% is owned by Insiders, and 43.31% is owned by Public Companies and Individual Investors.

• Key Investor Types

A breakdown of the different types of investors includes:

• Institutional Investors: These include entities like mutual funds, hedge funds, pension funds, and insurance companies. As of Q4 2023, institutional investors held approximately 45.6% of VersaBank's outstanding shares. According to Fintel, VersaBank has 77 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 11,687,206 shares. Major institutional shareholders include:
• Alliancebernstein L.p.
• CIBC World Markets Inc.
• rhino investment partners, Inc
• Mendon Capital Advisors Corp
• RMBKX - RMB Mendon Financial Services Fund Class A
• RMB Capital Management, LLC
• Wellington Management Group Llp
• Pacific Ridge Capital Partners, LLC
• Kennedy Capital Management, Inc.
• Pembroke Management, LTD
• Retail Investors: These are individual investors who buy and sell securities for their own accounts.
• Insiders: These are the company's executives and board members who own shares. Total insider ownership is around 8.2%. Key insiders include:
• David Taylor (CEO and Chairman): 321,000 shares
• Cynthia Devine (President): 155,000 shares

• Investment Motivations

Several factors attract investors to VersaBank:

• Growth Prospects: VersaBank is at an inflection point, with significant growth potential. The bank's expansion into the U.S. market, particularly with its Receivable Purchase Program (RPP), is expected to drive growth. VersaBank launched its unique Receivable Purchase Program (RPP) funding solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multi-trillion-dollar US market in August 2024.
• Business Model: VersaBank operates with a branchless, digital, business-to-business model, leveraging proprietary technology for efficiency and scalability.
• Cybersecurity Subsidiary: VersaBank owns DRT Cyber Inc., a cybersecurity firm, providing an additional revenue stream and growth opportunity.
• Low-Risk Profile: VersaBank prides itself on minimal credit losses due to its unique business model.
• High ROE Potential: VersaBank is expected to deliver a high Return on Equity (ROE) while maintaining a low-risk business model. The ROE trajectory of the bank should exceed 20%.

• Investment Strategies

Typical investment strategies seen among investors include:

• Long-Term Holding: Many institutional investors, such as Greystone Managed Investments Inc. and CIBC Asset Management, adopt a long-term holding strategy, indicating confidence in VersaBank's sustained growth and profitability.
• Value Investing: Investors may be attracted to VersaBank due to its high ROE, growth potential, and low-risk profile, making it an appealing value investment.
• Growth Investing: The expansion into the U.S. market and the potential for high growth may attract growth investors.

For additional insights into VersaBank's financial health, you can explore: Breaking Down VersaBank (VBNK) Financial Health: Key Insights for Investors

VersaBank (VBNK) Institutional Ownership and Major Shareholders of VersaBank (VBNK)

Institutional ownership in VersaBank (VBNK) provides insights into the stability and investor confidence in the company. Examining the top institutional investors, changes in their holdings, and the overall impact they have can help in understanding the stock's behavior and the company's strategic direction.

As of the data available, here’s an overview of institutional ownership in VersaBank:

• Top Institutional Investors: While specific, real-time data on the exact shareholdings of top institutional investors in VersaBank as of 2024's fiscal year is limited, broader investment trends and major holders are typically tracked through financial data providers. Institutional investors often include mutual funds, pension funds, hedge funds, and other large entities that manage investments on behalf of others.
• Investment Trends: To analyze whether institutional investors have increased or decreased their stakes recently, one would typically look at quarterly filings (e.g., 13F filings in the United States, or similar regulatory disclosures in Canada) to track changes in ownership percentages. However, without specific updated data for 2024, it's challenging to provide precise figures.
• Impact of Institutional Investors: Institutional investors can significantly influence a company's stock price through large volume trading. Their investment decisions can also impact the company’s strategy, as a substantial institutional presence may encourage management to focus on initiatives that drive shareholder value.

To get the most accurate and current data, resources such as financial news outlets, investor relations sections of VersaBank's website, and financial data services (e.g., Bloomberg, Reuters) should be consulted. These sources provide up-to-date information on institutional ownership, recent changes, and potential impacts on VersaBank's stock and strategy.

For more insights into VersaBank, you might find this resource helpful: VersaBank (VBNK): History, Ownership, Mission, How It Works & Makes Money

VersaBank (VBNK) Key Investors and Their Impact on VersaBank

Understanding the investor profile of VersaBank (VBNK) provides valuable insights into the market's perception of the bank and its strategic direction. Key investors can significantly influence company decisions and stock movements, making it crucial to monitor their activity and holdings.

While specific, real-time major investor data and their direct influence on VersaBank's decisions require up-to-date financial analysis tools and filings, we can discuss general categories of investors and their potential impact. Keep in mind that details on specific institutional holdings and recent moves would typically be found in regulatory filings like those with the SEC (in the US) or SEDAR (in Canada) or in financial news reports.

Here are some common types of investors and how they generally influence a company like VersaBank:

• Institutional Investors: These include mutual funds, pension funds, hedge funds, and insurance companies. They often hold large blocks of shares and can exert considerable influence on corporate governance and strategic decisions. Their investment decisions are typically driven by in-depth financial analysis and alignment with their investment mandates.
• Retail Investors: These are individual investors who buy and sell shares for their own accounts. While their individual holdings may be smaller, the collective impact of retail investors can be significant, particularly in driving short-term stock price movements.
• Activist Investors: These investors acquire significant stakes in a company with the goal of influencing its management and strategic direction. They may propose specific changes to improve performance or unlock shareholder value.
• Management and Insiders: Holdings by the company's executives and board members can signal their confidence in the company's future prospects. Significant buying or selling activity by insiders is often closely watched by other investors.

To illustrate the type of information that would be relevant, consider the following hypothetical example:

Disclaimer: This table is for illustrative purposes only and does not reflect actual investor data for VersaBank.

Analyzing the moves of significant investors requires access to up-to-date financial data and regulatory filings. Tools like Bloomberg Terminal, Thomson Reuters Eikon, and SEDAR (for Canadian filings) are invaluable resources for this type of analysis.

Keep in mind that understanding a company's mission, vision, and core values can also provide context for investment decisions. You can find more information at: Mission Statement, Vision, & Core Values of VersaBank (VBNK).

VersaBank (VBNK) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating the potential of any stock. For VersaBank (VBNK), several factors influence how major shareholders feel and how the market responds to their actions.

Current investor sentiment appears mixed, with analysts' ratings ranging from 'Strong Buy' to 'Neutral.' This suggests a divergence in perspectives regarding VersaBank's near-term growth and profitability. However, analysts generally agree on the long-term potential, particularly with VersaBank's expansion into the U.S. market [5].

Recent market reactions to VersaBank's performance have been notable. For example, the stock price fell by -3.92% on April 21, 2025, with a trading volume of 95,000 shares [21]. This volatility reflects the market's sensitivity to daily fluctuations and broader economic conditions. The share price as of April 7, 2025, was $9.06 per share, a 15.56% decline from $10.73 on April 8, 2024 [2].

Here’s a look at the major shareholders and their holdings:

• Alliancebernstein L.P.: 2.71 million shares (8.33%)
• CIBC World Markets Inc.: 1.29 million shares (3.97%)
• Rhino Investment Partners, Inc.: 894.52k shares (2.75%)
• Mendon Capital Advisors Corp: 887.25k shares (2.729%)

These institutions hold a significant portion of VersaBank's shares, indicating strong institutional interest [2, 9].

Analysts' perspectives on VersaBank are varied, with price targets ranging from $18.00 to $22.00. For instance, Raymond James maintains an 'Outperform' rating with an $18.00 target [27], while Keefe, Bruyette & Woods lowered their target to $22.00, also with an 'Outperform' rating [5]. These targets reflect expectations of future performance, considering factors like U.S. expansion and financial results.

The consensus EPS forecast for the fiscal year ending October 2025 is $1.16 [25]. Revenue estimates also show positive expectations, with an average estimate of $129.59 million for the current year (2025) and $189.45 million for the next year (2026) [14].

Key factors influencing analyst sentiment include:

• U.S. Expansion: The successful acquisition of Stearns Bank Holdingford N.A. and the launch of the Receivable Purchase Program (RPP) in the U.S. are expected to drive growth [1, 7].
• Financial Performance: VersaBank's 2024 revenue was $111.90 million, a 3.59% increase from the previous year. However, earnings decreased by -5.86% to $38.76 million [4, 11].
• Strategic Initiatives: The bank's focus on digital banking, cybersecurity services, and innovative payment technologies contributes to its unique position in the market [10, 16].

Institutional ownership is a significant indicator of market confidence. As of Q4 2023, institutional investors held approximately 45.6% of VersaBank's outstanding shares [8]. Major institutional holders include:

• Greystone Managed Investments Inc.
• CIBC Asset Management
• Burgundy Asset Management Ltd.

Recent news highlights several developments:

• VersaBank added a second U.S. RPP partner and surpassed $70 million in U.S. RPP assets within 75 days [4, 10].
• The bank's President acquired 4.6% more stock, signaling insider confidence [4].
• First quarter 2025 earnings missed expectations, with revenue down 7.5% from Q1 2024 [4].

For more detailed insights into VersaBank's financial health, you can explore this resource: Breaking Down VersaBank (VBNK) Financial Health: Key Insights for Investors.

Overall, VersaBank's market impact and investor sentiment are shaped by its strategic initiatives, financial performance, and broader economic conditions. While there are mixed opinions on near-term performance, the long-term outlook remains positive, driven by the bank's unique business model and expansion into the U.S. market.