Banc of California (NYSE:BANC) Shares Gap Down Following Weak Earnings

Key Points

• Banc of California shares fell sharply, opening at $19.83 after previously closing at $21.18, following quarterly EPS of negative $1.61 versus the $0.40 consensus estimate. Revenue declined 94% year over year.
• The bank declared a quarterly dividend of $0.12 per share, equivalent to $0.48 annually and a 2.5% yield, with a payout ratio of 36.64%.
• Despite the earnings miss, analysts maintained a generally positive outlook: the stock has an average “Buy” rating and a consensus price target of $22.69, above its latest trading price.

Banc of California, Inc. (NYSE:BANC - Get Free Report) gapped down prior to trading 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.

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%. During the same period last year, the business earned $0.31 EPS. The company's quarterly revenue was down 94.0% on a year-over-year basis.

Banc of California Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on BANC. Wells Fargo & Company boosted their target price 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, July 6th. JPMorgan Chase & Co. raised their price target on shares of Banc of California from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Wednesday, July 1st. Weiss Ratings cut Banc of California from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, June 4th. Barclays reduced their price objective on 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. Finally, Piper Sandler raised their price target on Banc of California from $22.00 to $23.00 and gave the company an "overweight" rating in a report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $22.69.

Hedge Funds Weigh In On Banc of California

A number of hedge funds and other institutional investors have recently modified their holdings of BANC. Assenagon Asset Management S.A. purchased a new position in Banc of California in the 2nd quarter worth about $21,767,000. GAMMA Investing LLC lifted its stake in Banc of California by 22.8% during the second quarter. GAMMA Investing LLC now owns 6,576 shares of the bank's stock valued at $134,000 after buying an additional 1,222 shares in the last quarter. PVG Asset Management Corp boosted its holdings in shares of Banc of California by 512.6% in the first quarter. PVG Asset Management Corp now owns 77,175 shares of the bank's stock worth $1,357,000 after buying an additional 64,578 shares during the period. Glenmede Trust Co. NA acquired a new position in shares of Banc of California in the first quarter worth about $246,000. Finally, Western Wealth Management LLC purchased a new position in shares of Banc of California in the first quarter worth approximately $29,000. Institutional investors and hedge funds own 86.88% of the company's stock.

Banc of California Stock Performance

The firm's 50-day moving average price is $20.11 and its two-hundred day moving average price is $19.31. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $2.97 billion, a PE ratio of 14.72 and a beta of 0.73.

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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