Banc of California (NYSE:BANC) Shares Gap Up on Earnings Beat

Banc of California, Inc. (NYSE:BANC) 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 for the quarter, topping the consensus estimate of $0.14 by $0.11. Banc of California had a negative net margin of 21.99% and a positive return on equity of 2.12%. The company had revenue of $431.44 million for the quarter, compared to the consensus estimate of $229.46 million. During the same quarter in the prior year, the company earned $0.30 EPS.

Banc of California Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on BANC. Citigroup began coverage on shares of Banc of California in a research note on Thursday, October 10th. They set a “neutral” rating and a $15.00 price objective on the stock. Barclays raised their price objective on shares of Banc of California from $16.00 to $17.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Raymond James raised their price objective on shares of Banc of California from $16.00 to $17.00 and gave the stock an “outperform” rating in a research note on Wednesday. Keefe, Bruyette & Woods dropped their price objective on shares of Banc of California from $18.00 to $17.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 9th. Finally, Stephens reaffirmed an “equal weight” rating and set a $14.00 price objective on shares of Banc of California in a research note on Wednesday, September 4th. 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $17.00.

Insider Activity

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BANC. Vanguard Group Inc. lifted its holdings in Banc of California by 143.4% in the 4th quarter. Vanguard Group Inc. now owns 9,014,810 shares of the bank’s stock valued at $121,069,000 after purchasing an additional 5,311,842 shares in the last quarter. Capital Research Global Investors purchased a new position in Banc of California in the 1st quarter valued at $32,618,000. Hodges Capital Management Inc. lifted its holdings in Banc of California by 288.4% in the 1st quarter. Hodges Capital Management Inc. now owns 1,748,004 shares of the bank’s stock valued at $26,587,000 after purchasing an additional 1,298,004 shares in the last quarter. William Blair Investment Management LLC lifted its holdings 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, American Century Companies Inc. lifted its holdings 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. Hedge funds and other institutional investors own 86.88% of the company’s stock.

Banc of California Stock Performance

The company has a current ratio of 0.89, a quick ratio of 0.83 and a debt-to-equity ratio of 0.32. The firm has a fifty day moving average price of $14.40 and a 200 day moving average price of $13.89. The firm has a market cap of $2.40 billion, a PE 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.