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Unity Bancorp
(NASDAQ:UNTY)
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Rating:71Outperform
Price Target:
$65.00
â–²(10.58% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by solid financial quality (strong margins, consistent ROE, and positive cash generation) and an attractive valuation (low P/E). Offsetting factors include the sharp TTM revenue drop that adds earnings volatility risk, plus only moderate technical momentum and mixed corporate-event signals.
Positive Factors
Strong profitability and returns
Sustained margins and high returns indicate strong earnings power for a regional bank. This profitability can support internal capital generation, resilience through changing credit conditions, and continued investment in customer and operating capabilities.
Negative Factors
Sharp revenue decline
The unusually steep top-line decline creates uncertainty around the durability of recent earnings and operating scale. Even with healthy margins, weaker revenue can reduce flexibility, increase earnings volatility, and constrain growth if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and returns
Sustained margins and high returns indicate strong earnings power for a regional bank. This profitability can support internal capital generation, resilience through changing credit conditions, and continued investment in customer and operating capabilities.
Read all positive factors
Unity Bancorp (UNTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$602.15M
Dividend Yield1.07%
Average Volume (3M)53.80K
Price to Earnings (P/E)10.2
Beta (1Y)0.91
Revenue Growth10.15%
EPS Growth16.03%
CountryUS
Employees242
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.85
Shares Outstanding10,042,578
10 Day Avg. Volume46,181
30 Day Avg. Volume53,803
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 Cap0.96
Enterprise Value/Revenue2.77
Enterprise Value/Gross Profit4.37
Enterprise Value/Ebitda7.38
Forecast
1Y Price Target
$69.00Price Target Upside17.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.85
Revenue Forecast (FY)$139.73M
Unity Bancorp Business Overview & Revenue Model
Company Description
As the parent entity of Unity Bank, Unity Bancorp, Inc. delivers a comprehensive range of commercial and retail banking solutions, catering to individual consumers, small and mid-sized enterprises, and professional organizations. Its product portf...
How the Company Makes Money
Unity Bancorp primarily makes money through traditional community-banking activities conducted by Unity Bank. The largest driver is net interest income: the bank earns interest and fees on loans (such as commercial real estate, commercial and indu...
Unity Bancorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 209.43M | 188.41M | 163.07M | 150.72M | 108.27M | 95.78M |
| Gross Profit | 132.69M | 127.87M | 101.99M | 99.05M | 93.36M | 87.86M |
| EBITDA | 78.57M | 78.32M | 56.97M | 55.38M | 54.18M | 49.74M |
| Net Income | 58.63M | 57.95M | 41.45M | 39.71M | 38.46M | 36.12M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 2.97B | 2.65B | 2.58B | 2.44B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 369.62M | 340.53M | 195.97M | 286.54M | 210.19M | 301.30M |
| Total Debt | 326.43M | 266.08M | 230.81M | 366.75M | 398.91M | 55.61M |
| Total Liabilities | 2.82B | 2.62B | 2.36B | 2.32B | 2.21B | 1.83B |
| Stockholders Equity | 371.81M | 345.63M | 295.58M | 261.43M | 239.23M | 205.73M |
Cash Flow | ||||||
| Free Cash Flow | 27.07M | 44.34M | 47.29M | 45.95M | 41.19M | 31.28M |
| Operating Cash Flow | 28.55M | 44.91M | 47.99M | 46.91M | 42.67M | 32.53M |
| Investing Cash Flow | -276.34M | -256.84M | -92.81M | -57.85M | -541.28M | -40.52M |
| Financing Cash Flow | 204.38M | 248.01M | 30.49M | 90.92M | 368.59M | 33.49M |
Unity Bancorp Technical Analysis
Positive
58.78
Price Trends
58.48
Positive
56.24
Positive
54.26
Positive
Market Momentum
0.03
Positive
57.85
Neutral
62.66
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 58.78 is below the 20-day moving average (MA) of 59.39, above the 50-day MA of 58.48, and above the 200-day MA of 54.26, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $588.37M | 8.53 | 20.68% | 2.42% | 18.07% | 52.19% | |
77 Outperform | $677.18M | 13.60 | 9.22% | 3.27% | 18.94% | 14.83% | |
75 Outperform | $719.04M | 12.65 | 10.86% | 3.47% | 0.41% | 68.29% | |
71 Outperform | $602.15M | 10.25 | 16.64% | 1.07% | 10.15% | 16.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $822.22M | 15.83 | 7.65% | 0.43% | 10.63% | 59.91% |
* Financial Sector Average
UNTY
Unity Bancorp
59.96
7.83
15.03%
BHB
Bar Harbor Bankshares
40.39
9.50
30.73%
NRIM
Northrim Bancorp
26.45
3.87
17.15%
PGC
Peapack-Gladstone Financial
46.38
17.49
60.56%
PFIS
Peoples Financial Services
71.83
21.42
42.48%
Unity Bancorp Corporate Events
Business Operations and StrategyDividends
Unity Bancorp Raises Quarterly Dividend, Signals Confidence
Positive
Aug 20, 2026
On August 20, 2026, Unity Bancorp announced that its Board of Directors approved a 6% increase in the third quarter cash dividend to $0.17 per common share. The dividend is payable on September 17, 2026, to shareholders of record as of September 3...
Executive/Board Changes
Unity Bancorp Announces Passing of Founding Board Director
Negative
Aug 7, 2026
Unity Bancorp, Inc. announced on August 7, 2026, the passing of director and founding member Robert (“Bobby”) H. Dallas II, who had served on the board since the bank’s inception and was instrumental in its evolution from a commu...
Dividends
Unity Bancorp Declares Quarterly Cash Dividend to Shareholders
Positive
May 21, 2026
On May 21, 2026, Unity Bancorp, Inc. announced that its board of directors declared a cash dividend of $0.16 per common share. The dividend will be paid on June 18, 2026, to shareholders of record as of June 4, 2026, underscoring the company’...
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.