Wells Fargo & Company Issues Pessimistic Forecast for Banc of California (NYSE:BANC) Stock Price

Key Points

• Wells Fargo lowered its price target for Banc of California from $22 to $21 but maintained an Overweight rating; the new target implies 16.76% upside from the previous close.
• Analyst sentiment remains broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $22.38, with seven Buy and three Hold ratings.
• Banc of California beat quarterly EPS estimates, reporting $0.46 versus $0.45 expected, while revenue of $303.07 million fell short of forecasts but increased 5.6% year over year.

Banc of California (NYSE:BANC - Get Free Report) had its price objective reduced by Wells Fargo & Company from $22.00 to $21.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an "overweight" rating on the bank's stock. Wells Fargo & Company's price target suggests a potential upside of 16.76% from the company's previous close.

BANC has been the topic of several other research reports. UBS Group started coverage on shares of Banc of California in a research report on Monday, September 14th. They set a "neutral" rating and a $20.00 price objective on the stock. Citigroup lowered their price target on Banc of California from $23.50 to $22.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Weiss Ratings lowered Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Brean Capital lowered Banc of California from a "buy" rating to a "neutral" rating in a research note on Thursday, July 30th. Finally, Wall Street Zen upgraded Banc of California from a "strong sell" rating to a "sell" rating in a report on Sunday, September 27th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Banc of California currently has a consensus rating of "Moderate Buy" and an average price target of $22.38.

Banc of California Stock Up 0.0%

Banc of California stock opened at $17.98 on Monday. The company has a market capitalization of $2.85 billion, a PE ratio of -52.90 and a beta of 0.74. The firm's fifty day moving average is $17.97 and its 200 day moving average is $18.90. The company has a quick ratio of 0.85, a current ratio of 0.87 and a debt-to-equity ratio of 0.20. Banc of California has a 12-month low of $16.12 and a 12-month high of $21.93.

Banc of California (NYSE:BANC - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The bank reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.01. Banc of California had a negative net margin of 0.58% and a positive return on equity of 8.51%. The business had revenue of $303.07 million during the quarter, compared to the consensus estimate of $306.27 million. During the same quarter last year, the firm posted $0.38 EPS. Banc of California's revenue was up 5.6% compared to the same quarter last year. As a group, sell-side analysts predict that Banc of California will post 1.70 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Ido Dotan sold 10,541 shares of the firm's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $18.30, for a total value of $192,900.30. Following the transaction, the general counsel owned 45,702 shares in the company, valued at $836,346.60. This trade represents a 18.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jared Wolff acquired 5,487 shares of the stock in a transaction that occurred on Friday, October 30th. The stock was purchased at an average price of $18.18 per share, with a total value of $99,753.66. Following the completion of the transaction, the chief executive officer owned 333,456 shares of the company's stock, valued at approximately $6,062,230.08. This trade represents a 1.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 2.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On Banc of California

Several institutional investors have recently modified their holdings of BANC. Eurizon Capital SGR S.p.A. acquired a new stake in Banc of California in the 3rd quarter valued at about $28,000. Western Wealth Management LLC acquired a new position in Banc of California during the first quarter worth $29,000. Fulcrum Asset Management LLP purchased a new stake in shares of Banc of California in the 3rd quarter valued at $34,000. Orion Capital Management LLC acquired a new position in Banc of California during the 2nd quarter worth about $37,000. Finally, Covestor Ltd boosted its holdings in Banc of California by 90.3% during the 3rd quarter. Covestor Ltd now owns 2,970 shares of the bank's stock valued at $51,000 after acquiring an additional 1,409 shares during the period. Institutional investors and hedge funds own 86.88% of the company's stock.

About Banc of California

Banc of California, Inc is a bank holding company headquartered in Los Angeles. Through its banking subsidiary, Banc of California, N.A., it provides commercial banking services to businesses, professionals and individuals, with a focus on customers in California.

The company offers business and consumer deposit accounts, commercial and real estate lending, and treasury management services. Its lending activities include financing for commercial real estate and businesses, along with specialized financing solutions.

Banc of California expanded its banking operations through its 2023 merger with PacWest Bancorp.

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