Unity Bancorp SVP Sells Shares: A Closer Look

On February 4th, James Joseph Donovan, the Senior Vice President of Unity Bancorp, Inc. (NASDAQ: UNT), conducted a stock sale involving 1,080 shares. The transaction was executed at an average price of $48.88 per share, resulting in a total sale amount of approximately $52,790.40. After this transaction, Donovan retains ownership of 4,975 shares in the company, which are valued at around $243,178. This sale indicates a 17.84% reduction in his overall position within the company.

The details of this stock sale were officially disclosed in a filing with the Securities and Exchange Commission (SEC).

Recent Stock Performance of Unity Bancorp

In midday trading on the following Wednesday, Unity Bancorp’s shares increased by $0.91, reaching a price of $49.92. The trading volume that day was notably high, with 73,883 shares exchanged compared to the usual daily average of 45,817 shares. The company currently holds a debt-to-equity ratio of 0.97, alongside a quick ratio and current ratio both at 1.16. Over the past year, the stock has fluctuated between a low of $25.33 and a high of $50.36. With a market capitalization of $498.50 million, the stock has a price-to-earnings ratio (P/E) of 12.30 and a beta of 1.03, indicating it is slightly more volatile than the market.

Quarterly Earnings Report Overview

Unity Bancorp recently released its quarterly earnings report on January 15th. The company reported earnings per share (EPS) of $1.13, which exceeded analysts' expectations of $1.08 by $0.05. The return on equity for the period was impressive at 15.08%, and the net margin stood at 25.24%. Analysts predict that Unity Bancorp will record an EPS of 4.83 for the ongoing fiscal year.

Dividend Announcement by Unity Bancorp

The bank also announced a quarterly dividend recently, which was disbursed on December 31st. Shareholders on record as of December 13th received a dividend payment of $0.13 per share. This totals to an annual dividend of $0.52, yielding a rate of 1.04%. The ex-dividend date was the same as the record date, December 13th. Currently, the dividend payout ratio (DPR) for Unity Bancorp is 12.81%, suggesting a sustainable dividend policy.

Market Analysts' Ratings and Predictions

Recent analyses by various equities research firms have provided insights into Unity Bancorp’s stock potential. Keefe, Bruyette & Woods reaffirmed an “outperform” rating for the stock, upgrading its price target to $55.00 from a previous $51.00. StockNews.com, however, downgraded its rating from “buy” to “hold” on October 22nd. Meanwhile, Piper Sandler continued with an “overweight” rating, slightly adjusting the price target upward to $54.00 from $53.00.

Institutional Activity Around Unity Bancorp

There have been several significant moves from large investors regarding Unity Bancorp shares. Notably, JPMorgan Chase & Co increased its stake in the company by 79.3% during the third quarter, resulting in ownership of 88,231 shares valued at $3,005,000. Other firms such as Inspire Investing LLC and Connor Clark & Lunn Investment Management have also increased their holdings recently. Currently, 42.31% of the stock is owned by various institutional investors.

About Unity Bancorp, Inc.

Unity Bancorp, Inc. operates as a bank holding company for Unity Bank. The company offers a wide range of banking services for both personal and commercial clients, including checking accounts, savings accounts, retirement accounts, and various types of loans.

Unity, Bancorp, Shares