Unity Bancorp (UNTY)
NASDAQ:UNTY
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Unity Bancorp
(NASDAQ:UNTY)
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Rating:77Outperform
Price Target:
$61.00
â–²(10.69% Upside)
Action:Upgraded
Date:05/10/26
The score is driven primarily by above-average financial quality (strong margins/ROE and improved leverage) and an attractive valuation (low P/E). Technicals are supportive but mostly neutral, while corporate events add a modest positive tilt via the dividend increase and governance stability.
Positive Factors
Strong profitability and returns
Sustained high margins and an ROE near 18% indicate durable earnings power for a regional bank, enabling internal capital generation, dividend support, and reinvestment in growth initiatives. These profitability levels provide a buffer versus cyclical pressures and support long-term shareholder returns.
Negative Factors
Weakened cash-flow momentum
Although FCF has historically converted near net income, recent declines in free cash flow growth and operating cash flow reduce internal financing capacity. This weakens buffers for credit losses, capital raises, or M&A, and raises the risk that capital returns or reinvestment will be constrained if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and returns
Sustained high margins and an ROE near 18% indicate durable earnings power for a regional bank, enabling internal capital generation, dividend support, and reinvestment in growth initiatives. These profitability levels provide a buffer versus cyclical pressures and support long-term shareholder returns.
Read all positive factors
Unity Bancorp (UNTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$546.33M
Dividend Yield1.08%
Average Volume (3M)44.24K
Price to Earnings (P/E)9.1
Beta (1Y)0.89
Revenue Growth15.59%
EPS Growth39.40%
CountryUS
Employees227
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.05
Shares Outstanding10,040,902
10 Day Avg. Volume52,142
30 Day Avg. Volume44,239
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.50
Price to Sales (P/S)2.75
P/FCF Ratio11.70
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit4.28
Enterprise Value/Ebitda7.17
Forecast
1Y Price Target
$64.67Price Target Upside17.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.84
Revenue Forecast (FY)$140.43M
Unity Bancorp Business Overview & Revenue Model
Company Description
Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and b...
How the Company Makes Money
Unity Bancorp primarily makes money through traditional banking activities at Unity Bank. The largest earnings driver is typically net interest income: the bank collects interest and fees on loans and other interest-earning assets (such as portion...
Unity Bancorp Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 211.06M | 188.41M | 163.07M | 150.72M | 108.27M | 95.78M |
| Gross Profit | 134.39M | 127.87M | 101.99M | 99.05M | 93.36M | 87.86M |
| EBITDA | 80.35M | 75.51M | 56.97M | 55.38M | 54.18M | 49.74M |
| Net Income | 60.65M | 57.95M | 41.45M | 39.71M | 38.46M | 36.12M |
Balance Sheet | ||||||
| Total Assets | 3.03B | 2.97B | 2.65B | 2.58B | 2.44B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 344.43M | 340.53M | 195.97M | 286.54M | 210.19M | 301.30M |
| Total Debt | 258.58M | 266.08M | 230.81M | 366.75M | 398.91M | 55.61M |
| Total Liabilities | 2.67B | 2.62B | 2.36B | 2.32B | 2.21B | 1.83B |
| Stockholders Equity | 358.10M | 345.63M | 295.58M | 261.43M | 239.23M | 205.73M |
Cash Flow | ||||||
| Free Cash Flow | 40.40M | 44.34M | 47.29M | 45.95M | 41.19M | 31.28M |
| Operating Cash Flow | 41.97M | 44.91M | 47.99M | 46.91M | 42.67M | 32.53M |
| Investing Cash Flow | -221.59M | -256.84M | -92.81M | -57.85M | -541.28M | -40.52M |
| Financing Cash Flow | 197.18M | 248.01M | 30.49M | 90.92M | 368.59M | 33.49M |
Unity Bancorp Technical Analysis
Positive
55.11
Price Trends
52.58
Positive
52.87
Positive
51.30
Positive
Market Momentum
0.04
Negative
58.16
Neutral
69.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTY, the sentiment is Positive. The current price of 55.11 is above the 20-day moving average (MA) of 52.92, above the 50-day MA of 52.58, and above the 200-day MA of 51.30, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 69.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTY.
Unity Bancorp Risk Analysis
Unity Bancorp disclosed 27 risk factors in its most recent earnings report. Unity Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Unity Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $546.33M | 9.08 | 17.87% | 1.08% | 15.59% | 39.40% | |
76 Outperform | $545.00M | 9.27 | 20.49% | 2.31% | 25.67% | 53.81% | |
75 Outperform | $757.99M | 10.94 | 6.68% | 0.70% | 10.61% | 37.65% | |
72 Outperform | $587.64M | 9.04 | 11.50% | 4.97% | 11.09% | 175.21% | |
70 Outperform | $577.94M | 10.02 | 7.81% | 3.92% | 10.98% | -14.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $592.63M | 11.37 | 0.68% | 4.38% | 6.67% | -84.79% |
* Financial Sector Average
UNTY
Unity Bancorp
54.41
11.27
26.11%
BHB
Bar Harbor Bankshares
34.52
5.89
20.57%
NFBK
Northfield Bancorp
14.19
3.15
28.49%
NRIM
Northrim Bancorp
24.50
2.92
13.54%
PGC
Peapack-Gladstone Financial
42.78
15.20
55.12%
PFIS
Peoples Financial Services
58.70
11.45
24.24%
Unity Bancorp Corporate Events
Executive/Board ChangesShareholder Meetings
Unity Bancorp Shareholders Reelect Directors, Ratify 2026 Auditor
Positive
Apr 23, 2026
Unity Bancorp, Inc., the parent of Unity Bank, operates as a community-oriented financial institution offering lending, deposit, and other banking services to customers in its core regional markets. The company focuses on serving local businesses ...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Unity Bancorp Posts Strong 2025 Results Ahead Meeting
Positive
Apr 22, 2026
Unity Bancorp reported strong full-year 2025 financial results ahead of its April 23, 2026 annual shareholder meeting, with net income rising 39.8% to $57.95 million and diluted EPS increasing to $5.67 from $4.06 in 2024. Key profitability metrics...
Business Operations and StrategyDividendsFinancial Disclosures
Unity Bancorp Boosts Quarterly Dividend Amid Strong Performance
Positive
Feb 26, 2026
Unity Bancorp, Inc. announced on February 26, 2026, that its board approved a 7% increase in the first-quarter cash dividend to $0.16 per common share, payable on March 20, 2026, to shareholders of record as of March 6. Management framed the highe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.