Banc of California (NYSE:BANC) Shares Gap Up Following Better-Than-Expected Earnings

Banc of California, Inc. (NYSE:BANC) shares gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $14.80, but opened at $15.26. Banc of California shares last traded at $15.15, with a volume of 222,600 shares trading hands.

The bank reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.11. The firm had revenue of $431.44 million during the quarter, compared to analysts’ expectations of $229.46 million. Banc of California had a negative net margin of 21.99% and a positive return on equity of 2.12%. During the same period last year, the business earned $0.30 earnings per share.

Banc of California Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 1st. Stockholders of record on Monday, September 16th were given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 2.62%. The ex-dividend date of this dividend was Monday, September 16th. Banc of California’s payout ratio is presently -12.01%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on BANC. Truist Financial increased their price objective on Banc of California from $15.00 to $16.00 and gave the stock a “hold” rating in a research report on Friday, September 20th. Stephens reiterated an “equal weight” rating and set a $14.00 price target on shares of Banc of California in a report on Wednesday, September 4th. Barclays boosted their price objective on shares of Banc of California from $16.00 to $17.00 and gave the company an “equal weight” rating in a report on Wednesday. Wedbush upped their target price on shares of Banc of California from $18.00 to $19.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, Raymond James lifted their price target on shares of Banc of California from $16.00 to $17.00 and gave the company an “outperform” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $17.00.

Insider Activity

In related news, Director Richard J. Lashley sold 75,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $14.00, for a total transaction of $1,050,000.00. Following the sale, the director now directly owns 719,826 shares of the company’s stock, valued at $10,077,564. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 7.37% of the company’s stock.

Hedge Funds Weigh In On Banc of California

Several institutional investors have recently modified their holdings of BANC. Vanguard Group Inc. raised its stake in shares of Banc of California by 17.6% in the first quarter. Vanguard Group Inc. now owns 10,597,751 shares of the bank’s stock valued at $161,192,000 after acquiring an additional 1,582,941 shares in the last quarter. PL Capital Advisors LLC increased its holdings in Banc of California by 0.7% during the 1st quarter. PL Capital Advisors LLC now owns 3,224,219 shares of the bank’s stock worth $49,040,000 after purchasing an additional 22,500 shares during the period. American Century Companies Inc. raised its position in Banc of California by 25.9% in the 2nd quarter. American Century Companies Inc. now owns 3,222,376 shares of the bank’s stock valued at $41,182,000 after purchasing an additional 663,061 shares in the last quarter. William Blair Investment Management LLC raised its position in Banc of California by 42.1% in the 1st quarter. William Blair Investment Management LLC now owns 2,575,930 shares of the bank’s stock valued at $39,180,000 after purchasing an additional 762,959 shares in the last quarter. Finally, Senator Investment Group LP boosted its stake in shares of Banc of California by 13.8% in the 1st quarter. Senator Investment Group LP now owns 2,445,685 shares of the bank’s stock valued at $37,199,000 after buying an additional 297,097 shares during the period. Institutional investors and hedge funds own 86.88% of the company’s stock.

Banc of California Stock Performance

The stock has a 50-day moving average price of $14.40 and a 200 day moving average price of $13.89. The company has a quick ratio of 0.83, a current ratio of 0.89 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of -4.59 and a beta of 1.14.

About Banc of California

Banc of California, Inc operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes.