Capital Bancorp, Inc. (NASDAQ:CBNK) to Issue Quarterly Dividend of $0.12

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) declared a quarterly dividend on Friday, August 1st, 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 c) annualized dividend and a dividend yield of 1.6%. The ex-dividend date 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% meaning 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 Stock Performance

NASDAQ:CBNK traded down $0.57 during midday trading on Friday, reaching $30.91. The stock had a trading volume of 79,446 shares, compared to its average volume of 56,543. Capital Bancorp has a 12-month low of $22.68 and a 12-month high of $36.40. The stock has a market cap of $514.87 million, a P/E ratio of 11.58 and a beta of 0.69. The company has a quick ratio of 1.01, a current ratio of 1.03 and a debt-to-equity ratio of 0.09. The firm has a fifty day simple moving average of $33.21 and a two-hundred day simple moving average of $30.97.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last released its earnings results on Monday, July 28th. The financial services provider reported $0.85 EPS for the quarter, missing analysts' consensus estimates of $0.89 by ($0.04). Capital Bancorp had a net margin of 15.14% and a return on equity of 16.06%. The business had revenue of $60.75 million during the quarter, compared to analyst estimates of $61.29 million. On average, equities analysts expect that Capital Bancorp will post 3.17 EPS for the current year.

Insider Activity

In other Capital Bancorp news, COO Steven M. Poynot acquired 750 shares of the stock in a transaction dated Wednesday, May 14th. The stock was acquired at an average price of $33.35 per share, with a total value of $25,012.50. Following the completion of the transaction, the chief operating officer directly owned 5,253 shares in the company, valued at approximately $175,187.55. This trade represents a 16.66% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 31.59% of the company's stock.

Institutional Investors Weigh In On Capital Bancorp

A number of institutional investors have recently bought and sold shares of CBNK. Federated Hermes Inc. grew its stake in shares of Capital Bancorp by 194.7% during the 4th quarter. Federated Hermes Inc. now owns 3,528 shares of the financial services provider's stock valued at $101,000 after buying an additional 2,331 shares during the period. Wells Fargo & Company MN raised its stake in shares of Capital Bancorp by 27.9% in the 4th quarter. Wells Fargo & Company MN now owns 5,400 shares of the financial services provider's stock valued at $154,000 after acquiring an additional 1,177 shares during the period. Allspring Global Investments Holdings LLC purchased a new stake in shares of Capital Bancorp in the second quarter worth about $209,000. Janus Henderson Group PLC purchased a new stake in shares of Capital Bancorp during the fourth quarter valued at approximately $219,000. Finally, Corton Capital Inc. purchased a new stake in Capital Bancorp during the 4th quarter worth $247,000. 56.14% of the stock is currently owned by hedge funds and other institutional investors.

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.