Capital Bancorp, Inc. (NASDAQ:CBNK) Increases Dividend to $0.12 Per Share

Key Points

• Capital Bancorp, Inc. has announced an increase in its quarterly dividend, raising it to $0.12 per share from the previous $0.10, reflecting a 20% rise.
• Shares of Capital Bancorp experienced a 7.8% decline in trading, with the stock closing at $31.72.
• The company reported quarterly earnings of $0.85 per share, falling short of consensus estimates by $0.04, with anticipated future earnings of $3.50 per share.

Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) announced a quarterly dividend on Tuesday, July 29th, Wall Street Journal reports. Shareholders of record on Monday, August 11th will be paid a dividend of 0.12 per share by the financial services provider on Wednesday, August 27th. This represents a $0.48 annualized dividend and a dividend yield of 1.51%. The ex-dividend date of this dividend is Monday, August 11th. This is a 20.0% increase from Capital Bancorp's previous quarterly dividend of $0.10.

Capital Bancorp has a dividend payout ratio of 11.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Capital Bancorp to earn $3.50 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 11.4%.

Capital Bancorp Trading Down 7.8%

Shares of Capital Bancorp stock traded down $2.67 during trading hours on Tuesday, hitting $31.72. The company's stock had a trading volume of 115,628 shares, compared to its average volume of 60,905. Capital Bancorp has a 12 month low of $22.68 and a 12 month high of $36.40. The stock has a 50 day moving average of $33.32 and a 200 day moving average of $30.90. The company has a market capitalization of $528.46 million, a PE ratio of 12.79 and a beta of 0.69. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.03 and a quick ratio of 1.01.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by ($0.04). The business had revenue of $60.75 million during the quarter, compared to the consensus estimate of $61.29 million. Capital Bancorp had a return on equity of 15.04% and a net margin of 14.43%. Analysts predict that Capital Bancorp will post 3.17 earnings per share for the current year.

Insider Activity

In other Capital Bancorp news, COO Steven M. Poynot purchased 750 shares of the firm's stock in a transaction dated Wednesday, May 14th. The shares were bought at an average price of $33.35 per share, for a total transaction of $25,012.50. Following the purchase, the chief operating officer owned 5,253 shares in the company, valued at approximately $175,187.55. This trade represents a 16.66% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 32.50% of the company's stock.

Hedge Funds Weigh In On Capital Bancorp

A hedge fund recently raised its stake in Capital Bancorp stock. AQR Capital Management LLC lifted its position in shares of Capital Bancorp, Inc. (NASDAQ:CBNK - Free Report) by 48.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 13,299 shares of the financial services provider's stock after acquiring an additional 4,336 shares during the quarter. AQR Capital Management LLC owned approximately 0.08% of Capital Bancorp worth $377,000 at the end of the most recent reporting period. Institutional investors own 56.14% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Keefe, Bruyette & Woods upped their price objective on Capital Bancorp from $33.00 to $35.00 and gave the company a "market perform" rating in a research note on Monday, May 12th. Hovde Group increased their target price on Capital Bancorp from $35.00 to $39.00 and gave the stock an "outperform" rating in a research note on Tuesday.

About Capital Bancorp

Capital Bancorp, Inc operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments.

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