Capital Bancorp, Inc. (NASDAQ:CBNK) Short Interest Update

Key Points

• Short interest surged 73.1% in March to 536,268 shares (about 4.8% of shares sold short), leaving a days-to-cover of 5.9 based on average volume.
• Capital Bancorp beat quarterly estimates with EPS of $0.91 vs. $0.83 and revenue of $62.74M vs. $60.62M, showing solid profitability (ROE 14.56%, net margin 18.44%).
• Wall Street sentiment is mildly positive with a consensus rating of “Moderate Buy” and a consensus target price of $34.67 after several recent upgrades.

Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) was the target of a large increase in short interest during the month of March. As of March 31st, there was short interest totaling 536,268 shares, an increase of 73.1% from the March 15th total of 309,837 shares. Approximately 4.8% of the company's shares are sold short. Based on an average daily trading volume, of 90,672 shares, the days-to-cover ratio is currently 5.9 days.

Hedge Funds Weigh In On Capital Bancorp

Institutional investors have recently modified their holdings of the company. Advisory Services Network LLC bought a new stake in Capital Bancorp in the third quarter valued at approximately $29,000. State of Alaska Department of Revenue lifted its stake 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 purchasing an additional 908 shares during the period. Aquatic Capital Management LLC bought a new stake in Capital Bancorp during the third quarter worth about $61,000. Daytona Street Capital LLC bought a new position in Capital Bancorp in the 4th quarter worth about $72,000. Finally, Federated Hermes Inc. increased its holdings in shares of Capital Bancorp by 33.1% in the 3rd quarter. Federated Hermes Inc. now owns 5,518 shares of the financial services provider's stock worth $176,000 after purchasing an additional 1,373 shares in the last quarter. 56.14% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Capital Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, March 4th. Zacks Research upgraded shares of Capital Bancorp from a "strong sell" rating to a "hold" rating in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods boosted their price target on Capital Bancorp from $31.00 to $32.00 and gave the company a "market perform" rating in a research note on Monday, February 2nd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $34.67.

Capital Bancorp Trading Down 1.6%

Shares of Capital Bancorp stock opened at $31.35 on Monday. 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 stock has a market capitalization of $511.22 million, a P/E ratio of 9.26 and a beta of 0.59. Capital Bancorp has a 52-week low of $25.10 and a 52-week high of $36.40. The stock's 50-day simple moving average is $30.34 and its 200 day simple moving average is $29.47.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last announced its quarterly earnings results on Monday, January 26th. The financial services provider reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.08. Capital Bancorp had a return on equity of 14.56% and a net margin of 18.44%.The firm had revenue of $62.74 million for the quarter, compared to analysts' expectations of $60.62 million. As a group, research analysts anticipate that Capital Bancorp will post 3.17 EPS for the current year.

Capital Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Investors of record on Monday, February 9th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Monday, February 9th. Capital Bancorp's dividend payout ratio is currently 14.12%.

Capital Bancorp Company Profile

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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