Unity Bancorp (UNTY)
NASDAQ:UNTY
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Unity Bancorp
(NASDAQ:UNTY)
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Rating:71Outperform
Price Target:
$59.00
â–²(16.30% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by solid financial performance (strong margins/returns and improved leverage), tempered by 2025 revenue and free-cash-flow declines. Valuation is a meaningful positive (low P/E with a dividend), while technical indicators are mixed with slightly negative momentum. A recent dividend increase adds incremental support.
Positive Factors
High and improving profitability
Sustained higher net margins and mid-teens ROE provide a durable earnings buffer versus peers. Improved profitability supports internal capital generation, funds dividends and loan growth, and reduces sensitivity to modest revenue lapses, strengthening the bank’s long-term franchise.
Negative Factors
2025 revenue contraction
A material revenue decline reduces operating leverage and limits funds available for reinvestment or provisioning. If revenue headwinds persist, the bank must rely more on margin expansion or cost cuts, which can be difficult to sustain and may constrain durable growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving profitability
Sustained higher net margins and mid-teens ROE provide a durable earnings buffer versus peers. Improved profitability supports internal capital generation, funds dividends and loan growth, and reduces sensitivity to modest revenue lapses, strengthening the bank’s long-term franchise.
Read all positive factors
Unity Bancorp (UNTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$508.13M
Dividend Yield1.08%
Average Volume (3M)44.24K
Price to Earnings (P/E)8.4
Beta (1Y)0.89
Revenue Growth11.38%
EPS Growth36.10%
CountryUS
Employees227
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.41
Shares Outstanding10,016,427
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 Cap1.10
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit4.30
Enterprise Value/Ebitda7.24
Forecast
1Y Price Target
$65.00Price Target Upside28.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.78
Revenue Forecast (FY)$139.83M
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 generates revenue primarily through the interest income earned on loans and investments. The bank provides various loan products such as residential mortgages, commercial real estate loans, and consumer loans, which yield interest pa...
Unity Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 188.41M | 163.07M | 150.72M | 108.27M | 95.78M |
| Gross Profit | 127.87M | 101.99M | 99.05M | 93.36M | 87.86M |
| EBITDA | 75.51M | 56.97M | 55.38M | 54.18M | 49.74M |
| Net Income | 57.95M | 41.45M | 39.71M | 38.46M | 36.12M |
Balance Sheet | |||||
| Total Assets | 2.97B | 2.65B | 2.58B | 2.44B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 340.53M | 195.97M | 286.54M | 210.19M | 301.30M |
| Total Debt | 266.08M | 230.81M | 366.75M | 398.91M | 55.61M |
| Total Liabilities | 2.62B | 2.36B | 2.32B | 2.21B | 1.83B |
| Stockholders Equity | 345.63M | 295.58M | 261.43M | 239.23M | 205.73M |
Cash Flow | |||||
| Free Cash Flow | 44.34M | 47.29M | 45.95M | 41.19M | 31.28M |
| Operating Cash Flow | 44.91M | 47.99M | 46.91M | 42.67M | 32.53M |
| Investing Cash Flow | -256.84M | -92.81M | -57.85M | -541.28M | -40.52M |
| Financing Cash Flow | 248.01M | 30.49M | 90.92M | 368.59M | 33.49M |
Unity Bancorp Technical Analysis
Neutral
50.73
Price Trends
52.62
Negative
51.77
Negative
50.43
Positive
Market Momentum
-0.59
Negative
45.53
Neutral
75.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTY, the sentiment is Neutral. The current price of 50.73 is below the 20-day moving average (MA) of 50.81, below the 50-day MA of 52.62, and above the 200-day MA of 50.43, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $508.13M | 8.36 | 17.76% | 1.08% | 11.38% | 36.10% | |
69 Neutral | $528.95M | 8.23 | 10.83% | 4.97% | 39.98% | 413.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $498.32M | 9.10 | 21.32% | 2.31% | 36.60% | 92.63% | |
66 Neutral | $609.88M | 13.10 | 5.85% | 0.70% | 9.16% | 6.95% | |
62 Neutral | $532.57M | 14.04 | 7.42% | 3.92% | 4.26% | -16.52% | |
49 Neutral | $558.80M | 576.05 | 0.11% | 4.38% | 6.08% | 52.64% |
* Financial Sector Average
UNTY
Unity Bancorp
50.73
9.94
24.36%
BHB
Bar Harbor Bankshares
31.81
3.24
11.35%
NFBK
Northfield Bancorp
13.38
2.83
26.82%
NRIM
Northrim Bancorp
22.52
4.69
26.30%
PGC
Peapack-Gladstone Financial
34.71
6.46
22.85%
PFIS
Peoples Financial Services
52.90
10.27
24.08%
Unity Bancorp Corporate Events
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...
Business Operations and Strategy
Unity Bancorp Updates Deferred Compensation Plan Interest Terms
Neutral
Dec 18, 2025
On December 18, 2025, Unity Bank, a wholly owned subsidiary of Unity Bancorp, amended its Deferred Compensation Plan to change how interest is credited on benefits paid in ten equal annual installments instead of a lump sum. Under the amendment, i...
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.