Wall Street Zen Upgrades Banc of California (NYSE:BANC) to Sell

Key Points

• Wall Street Zen upgraded Banc of California from “strong sell” to “sell,” while the broader analyst consensus remains “Moderate Buy” with a $21.00 price target.
• The bank reported a significant quarterly loss, posting ($1.61) EPS versus expectations of $0.40 and revenue of $16.41 million versus estimates of $295.32 million; revenue fell 94% year over year.
• BANC shares opened at $17.96, up 1.3%, but remain below their 50-day and 200-day moving averages. Two insiders also sold shares recently, while institutional investors own 86.88% of the stock.

Banc of California (NYSE:BANC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "strong sell" rating to a "sell" rating in a report issued on Sunday, Wall Street Zen reports.

Several other analysts have also recently commented on the company. Weiss Ratings cut Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a report on Friday, August 21st. UBS Group initiated coverage on shares of Banc of California in a report on Monday, September 14th. They issued a "neutral" rating and a $20.00 target price for the company. Brean Capital lowered shares of Banc of California from a "buy" rating to a "neutral" rating in a research report on Thursday, July 30th. Citigroup decreased their price target on shares of Banc of California from $23.50 to $22.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Finally, Wells Fargo & Company started coverage on shares of Banc of California in a research note on Monday, August 10th. They set an "overweight" rating and a $23.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $21.00.

Banc of California Trading Up 1.3%

NYSE BANC opened at $17.96 on Friday. Banc of California has a 12 month low of $15.33 and a 12 month high of $21.93. The stock has a market capitalization of $2.85 billion, a P/E ratio of -42.77 and a beta of 0.73. The firm's 50-day moving average is $19.11 and its two-hundred day moving average is $18.98. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.89 and a quick ratio of 0.86.

Banc of California (NYSE:BANC - Get Free Report) last announced its earnings results 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 firm had revenue of $16.41 million for the quarter, compared to analyst estimates of $295.32 million. Banc of California had a positive return on equity of 7.98% and a negative net margin of 1.44%.The firm's revenue was down 94.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.31 EPS. On average, sell-side analysts anticipate that Banc of California will post 1.69 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Olivia I. Lindsay sold 6,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were 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. The trade was a 15.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Ido Dotan sold 10,541 shares of the business's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $18.30, for a total transaction of $192,900.30. Following the transaction, the general counsel directly owned 45,702 shares in the company, valued at approximately $836,346.60. The trade was 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 owned by corporate insiders.

Hedge Funds Weigh In On Banc of California

A number of institutional investors have recently added to or reduced their stakes in BANC. Western Wealth Management LLC bought a new position in shares of Banc of California in the 1st quarter worth about $29,000. Orion Capital Management LLC acquired a new position in Banc of California in the second quarter valued at approximately $37,000. EverSource Wealth Advisors LLC boosted its stake in Banc of California by 38.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,023 shares of the bank's stock valued at $39,000 after acquiring an additional 564 shares during the period. Hantz Financial Services Inc. grew its holdings in shares of Banc of California by 199.0% during the fourth quarter. Hantz Financial Services Inc. now owns 2,159 shares of the bank's stock valued at $42,000 after purchasing an additional 1,437 shares during the last quarter. Finally, Nykredit A S acquired a new stake in shares of Banc of California during the 2nd quarter worth approximately $61,000. Institutional investors and hedge funds own 86.88% of the company's stock.

Banc of California Company Profile

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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