Capital Bancorp, Inc. (NASDAQ:CBNK) Sees Significant Increase in Short Interest

Key Points

• Short interest rose 14.0% to 611,257 shares as of April 15, equal to 5.6% of the company's shares and a short-interest ratio of 7.4 days based on average daily volume.
• Analysts have a consensus of "Moderate Buy" with an average price target of $35.33 (three Buys, two Holds); Weiss upgraded to Buy and Keefe, Bruyette & Woods raised its price target to $34.
• Capital Bancorp reported quarterly EPS of $0.73, missing estimates of $0.78 while revenue was roughly in line, and announced a $0.12 quarterly dividend (annualized $0.48, ~1.5% yield).

Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) was the recipient of a significant increase in short interest during the month of April. As of April 15th, there was short interest totaling 611,257 shares, an increase of 14.0% from the March 31st total of 536,268 shares. Based on an average daily volume of 82,895 shares, the short-interest ratio is presently 7.4 days. Currently, 5.6% of the company's shares are short sold.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Weiss Ratings upgraded shares of Capital Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, March 4th. Keefe, Bruyette & Woods raised their price objective on shares of Capital Bancorp from $32.00 to $34.00 and gave the stock a "market perform" rating in a research report on Wednesday. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $35.33.

Capital Bancorp Trading Up 0.8%

NASDAQ CBNK opened at $31.49 on Friday. Capital Bancorp has a one year low of $26.40 and a one year high of $36.40. The firm has a 50 day simple moving average of $30.27 and a 200-day simple moving average of $29.57. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.02 and a current ratio of 1.03. The firm has a market cap of $513.57 million, a price-to-earnings ratio of 9.51 and a beta of 0.59.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last issued its quarterly earnings results on Monday, April 27th. The financial services provider reported $0.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.78 by ($0.05). Capital Bancorp had a return on equity of 13.62% and a net margin of 17.48%.The firm had revenue of $62.77 million during the quarter, compared to analysts' expectations of $62.41 million. Equities research analysts anticipate that Capital Bancorp will post 3.3 EPS for the current fiscal year.

Capital Bancorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Monday, May 11th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, May 11th. This represents a $0.48 dividend on an annualized basis and a yield of 1.5%. Capital Bancorp's dividend payout ratio (DPR) is presently 14.50%.

Hedge Funds Weigh In On Capital Bancorp

Institutional investors have recently modified their holdings of the business. Advisory Services Network LLC acquired a new position in shares of Capital Bancorp in the 3rd quarter valued at $29,000. State of Alaska Department of Revenue increased its holdings in shares of Capital Bancorp by 135.1% in the 4th quarter. State of Alaska Department of Revenue now owns 1,580 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 908 shares during the period. Aquatic Capital Management LLC acquired a new position in shares of Capital Bancorp in the 3rd quarter valued at $61,000. Daytona Street Capital LLC acquired a new position in shares of Capital Bancorp in the 4th quarter valued at $72,000. Finally, Federated Hermes Inc. grew its position in Capital Bancorp by 33.1% in the 3rd quarter. Federated Hermes Inc. now owns 5,518 shares of the financial services provider's stock valued at $176,000 after buying an additional 1,373 shares during the last quarter. 56.14% of the stock is owned by institutional investors and hedge funds.

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. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and credit cards.

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