Banc of California (NYSE:BANC) Shares Gap Down on Disappointing Earnings

Banc of California, Inc. (NYSE:BANC) shares gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $21.18, but opened at $19.83. Banc of California shares last traded at $19.2770, with a volume of 1,317,224 shares changing hands.

The bank reported ($1.61) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($2.01). Banc of California had a net margin of 13.58% and a return on equity of 9.25%. The business’s revenue was down 94.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.31 EPS.

Banc of California Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Monday, June 15th were given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Monday, June 15th. Banc of California’s payout ratio is presently 36.64%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. DA Davidson reaffirmed a “buy” rating and set a $24.00 target price on shares of Banc of California in a research note on Tuesday, April 28th. Barclays reduced their price target on shares of Banc of California from $25.00 to $23.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. JPMorgan Chase & Co. raised their price target on shares of Banc of California from $22.00 to $24.00 and gave the stock an “overweight” rating in a report on Wednesday, July 1st. Weiss Ratings downgraded shares of Banc of California from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. Finally, Piper Sandler upped their price objective on shares of Banc of California from $22.00 to $23.00 and gave the company an “overweight” rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $22.69.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in Banc of California by 4.6% in the fourth quarter. Vanguard Group Inc. now owns 9,951,795 shares of the bank’s stock worth $191,970,000 after purchasing an additional 438,320 shares in the last quarter. UBS Group AG grew its holdings in shares of Banc of California by 28.4% during the fourth quarter. UBS Group AG now owns 598,427 shares of the bank’s stock worth $11,544,000 after purchasing an additional 132,328 shares during the last quarter. Bridgeway Capital Management LLC increased its stake in shares of Banc of California by 11.8% in the fourth quarter. Bridgeway Capital Management LLC now owns 915,325 shares of the bank’s stock valued at $17,657,000 after buying an additional 96,372 shares in the last quarter. William Blair Investment Management LLC increased its stake in shares of Banc of California by 8.8% in the fourth quarter. William Blair Investment Management LLC now owns 2,317,363 shares of the bank’s stock valued at $44,702,000 after buying an additional 187,999 shares in the last quarter. Finally, LSV Asset Management bought a new position in shares of Banc of California in the fourth quarter valued at about $3,740,000. 86.88% of the stock is owned by institutional investors.

Banc of California Price Performance

The stock has a fifty day moving average of $20.11 and a 200-day moving average of $19.31. The firm has a market capitalization of $2.97 billion, a P/E ratio of 14.72 and a beta of 0.73. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.31.

About Banc of California

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.