Banc of California, Inc. (NYSE:BANC) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Analysts remain bullish: Ten brokerages give Banc of California a consensus “Buy” rating, with an average 12-month price target of $22.63 versus the stock’s recent price of $19.58.
• Quarterly results fell sharply short of expectations: The bank reported an adjusted loss of $1.61 per share versus an expected $0.40 profit, while revenue plunged 94% year over year to $16.41 million.
• Institutional ownership is strong: Institutions and hedge funds own 86.88% of the stock, with several major investors recently increasing or initiating positions. The company also declared a quarterly dividend of $0.12 per share, yielding about 2.5% annually.

Banc of California, Inc. (NYSE:BANC - Get Free Report) has earned an average recommendation of "Buy" from the ten research firms that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a hold rating, six have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $22.6250.

A number of research analysts have recently issued reports on BANC shares. Wells Fargo & Company started coverage on shares of Banc of California in a research note on Monday. They set an "overweight" rating and a $23.00 price target on the stock. DA Davidson restated a "buy" rating and issued a $24.00 price objective on shares of Banc of California in a research report on Tuesday, April 28th. JPMorgan Chase & Co. lifted their price objective on Banc of California from $22.00 to $24.00 and gave the company an "overweight" rating in a report on Wednesday, July 1st. Brean Capital cut Banc of California from a "buy" rating to a "neutral" rating in a research report on Thursday, July 30th. Finally, Citigroup cut their target price on 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.

Insiders Place Their Bets

In related news, insider Olivia I. Lindsay sold 6,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total value of $117,000.00. Following the sale, the insider directly owned 32,842 shares in the company, valued at $640,419. The trade was a 15.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.78% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Banc of California in the 2nd quarter valued at $462,252,000. Bank of America Corp DE grew its stake in shares of Banc of California by 243.9% during the 3rd quarter. Bank of America Corp DE now owns 3,430,938 shares of the bank's stock valued at $56,782,000 after buying an additional 2,433,394 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Banc of California by 45.4% during the 3rd quarter. Dimensional Fund Advisors LP now owns 5,053,402 shares of the bank's stock worth $83,635,000 after buying an additional 1,576,914 shares during the last quarter. William Blair Investment Management LLC acquired a new stake in shares of Banc of California during the 2nd quarter worth $25,521,000. Finally, Balyasny Asset Management L.P. purchased a new position in shares of Banc of California in the 2nd quarter worth $17,400,000. Institutional investors and hedge funds own 86.88% of the company's stock.

Banc of California Stock Performance

Shares of Banc of California stock opened at $19.58 on Thursday. The firm has a market capitalization of $3.02 billion, a P/E ratio of -46.62 and a beta of 0.74. Banc of California has a 52 week low of $15.17 and a 52 week high of $21.93. The company has a quick ratio of 0.86, a current ratio of 0.89 and a debt-to-equity ratio of 0.20. The firm's 50 day moving average is $20.16 and its two-hundred day moving average is $19.20.

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 the consensus estimate of $0.40 by ($2.01). Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The company had revenue of $16.41 million during the quarter, compared to analyst estimates of $295.32 million. During the same quarter in the prior year, the company earned $0.31 EPS. The business's revenue was down 94.0% on a year-over-year basis. Research analysts forecast that Banc of California will post 1.68 EPS for the current fiscal year.

Banc of California Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.48 annualized dividend and a dividend yield of 2.5%. Banc of California's payout ratio is -114.29%.

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.

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