Banc of California (NYSE:BANC) Downgraded by Wall Street Zen to "Strong Sell"

Key Points

• Wall Street Zen downgraded Banc of California to “Strong Sell” from “Sell,” despite the broader analyst consensus remaining “Moderate Buy” with a $21.00 price target.
• The bank reported a significant quarterly miss, posting a $1.61 loss per share versus expectations for $0.40 in earnings, while revenue fell 94% year over year to $16.41 million.
• Banc of California shares opened at $18.34, down 0.9%, while insiders sold shares and institutional investors owned 86.88% of the stock.

Banc of California (NYSE:BANC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on the company. UBS Group began coverage on Banc of California in a research note on Monday. They issued a "neutral" rating and a $20.00 target price on the stock. Barclays set a $10.00 price objective on shares of Banc of California in a report on Tuesday. Wells Fargo & Company initiated coverage on shares of Banc of California in a research report on Monday, August 10th. They issued an "overweight" rating and a $23.00 price objective on the stock. Citigroup reduced their target price on shares of Banc of California from $23.50 to $22.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Finally, Brean Capital cut shares of Banc of California from a "buy" rating to a "neutral" rating in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.00.

Banc of California Stock Down 0.9%

NYSE:BANC opened at $18.34 on Friday. The company has a current ratio of 0.89, a quick ratio of 0.86 and a debt-to-equity ratio of 0.20. The stock has a 50 day moving average of $19.40 and a 200-day moving average of $18.97. The firm has a market capitalization of $2.90 billion, a PE ratio of -43.65 and a beta of 0.73. Banc of California has a 52 week low of $15.33 and a 52 week high of $21.93.

Banc of California (NYSE:BANC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The bank reported ($1.61) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($2.01). The company had revenue of $16.41 million for the quarter, compared to analyst estimates of $295.32 million. Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The company's revenue for the quarter was down 94.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.31 EPS. Analysts predict that Banc of California will post 1.68 EPS for the current year.

Insiders Place Their Bets

In other news, insider Olivia Lindsay sold 6,000 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $19.50, for a total transaction of $117,000.00. Following the transaction, the insider directly owned 32,842 shares of the company's stock, valued at approximately $640,419. This trade represents a 15.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Ido Dotan sold 10,541 shares of Banc of California stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $18.30, for a total transaction of $192,900.30. Following the sale, the general counsel owned 45,702 shares in the company, valued at approximately $836,346.60. This represents a 18.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.78% of the stock is currently owned by company insiders.

Institutional Trading of Banc of California

Institutional investors have recently made changes to their positions in the stock. Engineers Gate Manager LP raised its holdings in Banc of California by 8.8% during the second quarter. Engineers Gate Manager LP now owns 232,431 shares of the bank's stock worth $4,749,000 after purchasing an additional 18,862 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in Banc of California during the 2nd quarter valued at $70,000. Squarepoint Ops LLC boosted its stake in Banc of California by 417.1% during the 2nd quarter. Squarepoint Ops LLC now owns 323,256 shares of the bank's stock valued at $6,604,000 after purchasing an additional 260,741 shares in the last quarter. Arizona State Retirement System increased its position in shares of Banc of California by 14.4% during the 2nd quarter. Arizona State Retirement System now owns 40,310 shares of the bank's stock valued at $824,000 after purchasing an additional 5,078 shares during the period. Finally, Nykredit A S acquired a new position in shares of Banc of California during the 2nd quarter valued at $61,000. 86.88% of the stock is owned by institutional investors and hedge funds.

About Banc of California

Banc of California, Inc is the holding company for Banc of California, a relationship-focused financial institution headquartered in California. The bank provides banking and financial services to businesses, entrepreneurs, professionals, individuals and families, with a focus on supporting the state's local communities and economy.

Its offerings include commercial and industrial lending, commercial real estate financing, residential mortgage lending, consumer loans, business and personal deposit accounts, treasury management, online and mobile banking, and other cash-management services.

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