Bay Commercial Bank (NASDAQ:BCML) Shares Down 1.3% - Here's Why

Key Points

• Bay Commercial Bank shares fell 1.3% in mid-day trading, slipping to around $33 after lighter-than-normal volume. The move came despite the stock trading above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: several firms have recently downgraded BCML to Hold/Neutral, while MarketBeat still shows a Moderate Buy consensus with a $34 price target.
• The company reported earnings of $0.75 per share in its latest quarter, beating estimates, and it also declared a quarterly dividend of $0.30 per share, implying a 3.6% annualized yield.

Bay Commercial Bank (NASDAQ:BCML - Get Free Report)'s share price dropped 1.3% during mid-day trading on Wednesday . The stock traded as low as $32.88 and last traded at $33.03. Approximately 47,043 shares traded hands during trading, a decline of 53% from the average daily volume of 100,730 shares. The stock had previously closed at $33.46.

Wall Street Analysts Forecast Growth

BCML has been the subject of a number of analyst reports. Brean Capital lowered shares of Bay Commercial Bank from a "buy" rating to a "neutral" rating in a research report on Friday, April 10th. DA Davidson cut shares of Bay Commercial Bank from a "buy" rating to a "neutral" rating and set a $34.00 target price for the company. in a research note on Tuesday, May 26th. Weiss Ratings upgraded Bay Commercial Bank from a "buy (b+)" rating to a "buy (a-)" rating in a report on Tuesday, June 30th. Finally, Zacks Research downgraded Bay Commercial Bank from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $34.00.

Bay Commercial Bank Price Performance

The company has a market capitalization of $360.36 million, a PE ratio of 13.65 and a beta of 0.27. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.02. The company's 50 day moving average price is $31.43 and its 200-day moving average price is $30.19.

Bay Commercial Bank (NASDAQ:BCML - Get Free Report) last issued its earnings results on Thursday, April 23rd. The company reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.13. The firm had revenue of $1.54 million for the quarter, compared to analysts' expectations of $25.95 million. Bay Commercial Bank had a return on equity of 7.84% and a net margin of 18.41%. On average, sell-side analysts forecast that Bay Commercial Bank will post 2.7 earnings per share for the current fiscal year.

Bay Commercial Bank Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be issued a $0.30 dividend. The ex-dividend date is Thursday, June 11th. This represents a $1.20 annualized dividend and a yield of 3.6%. Bay Commercial Bank's dividend payout ratio (DPR) is presently 49.59%.

Insider Transactions at Bay Commercial Bank

In related news, Director Michael J. Perdue purchased 3,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average cost of $30.94 per share, for a total transaction of $92,820.00. Following the acquisition, the director owned 3,000 shares in the company, valued at approximately $92,820. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Rhumbline Advisers increased its stake in Bay Commercial Bank by 3.5% during the 2nd quarter. Rhumbline Advisers now owns 16,673 shares of the company's stock valued at $462,000 after buying an additional 564 shares during the period. Invesco Ltd. boosted its holdings in shares of Bay Commercial Bank by 7.2% in the fourth quarter. Invesco Ltd. now owns 10,667 shares of the company's stock valued at $314,000 after acquiring an additional 716 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its stake in shares of Bay Commercial Bank by 3.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 23,068 shares of the company's stock valued at $678,000 after acquiring an additional 771 shares during the period. LSV Asset Management increased its stake in shares of Bay Commercial Bank by 0.9% during the fourth quarter. LSV Asset Management now owns 87,211 shares of the company's stock valued at $2,564,000 after acquiring an additional 800 shares during the period. Finally, Ameriprise Financial Inc. raised its holdings in Bay Commercial Bank by 3.7% during the second quarter. Ameriprise Financial Inc. now owns 23,639 shares of the company's stock worth $655,000 after purchasing an additional 852 shares in the last quarter. 66.16% of the stock is owned by institutional investors and hedge funds.

About Bay Commercial Bank

Bay Commercial Bank is a bank holding company that offers a full suite of commercial and consumer banking services through its subsidiary, Bay Commercial Bank. The institution emphasizes relationship-driven banking, focusing on the needs of small and medium-sized businesses, professionals, and individual customers.

The bank's lending portfolio encompasses commercial real estate, construction and development financing, equipment loans, acquisition financing, and consumer credit products such as residential mortgages and personal lines of credit.

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