Capital Bancorp (NASDAQ:CBNK) Announces Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• Earnings miss: Capital Bancorp reported EPS of $0.73 vs. a $0.78 consensus (missed by $0.05), while revenue slightly beat at $62.77M vs. $62.42M.
• Valuation and market reaction: Shares rose about 1.4% after the results; the company has a market cap of ~$519M, a P/E of ~9.36, and is trading near $31.82 within a 52‑week range of $26.40–$36.40.
• Analyst upgrades and ownership: Analyst sentiment has improved to an average "Moderate Buy" with a $34.67 consensus price target, and institutional investors own roughly 56% of the stock.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) issued its earnings results on Monday. The financial services provider reported $0.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.05), FiscalAI reports. The company had revenue of $62.77 million for the quarter, compared to the consensus estimate of $62.42 million. Capital Bancorp had a return on equity of 14.56% and a net margin of 18.44%.

Capital Bancorp Trading Up 1.4%

NASDAQ:CBNK opened at $31.82 on Tuesday. The firm has a market capitalization of $518.98 million, a P/E ratio of 9.36 and a beta of 0.59. The company has a quick ratio of 1.02, a current ratio of 1.03 and a debt-to-equity ratio of 0.13. The company has a fifty day moving average of $30.30 and a 200 day moving average of $29.53. Capital Bancorp has a 52 week low of $26.40 and a 52 week high of $36.40.

Analysts Set New Price Targets

A number of analysts have commented on CBNK shares. Zacks Research raised Capital Bancorp from a "strong sell" rating to a "hold" rating in a report on Monday, December 29th. Keefe, Bruyette & Woods lifted their target price on Capital Bancorp from $31.00 to $32.00 and gave the company a "market perform" rating in a research report on Monday, February 2nd. Finally, Weiss Ratings upgraded Capital Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, March 4th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Capital Bancorp currently has an average rating of "Moderate Buy" and a consensus price target of $34.67.

Hedge Funds Weigh In On Capital Bancorp

A number of hedge funds have recently modified their holdings of the company. Jump Financial LLC purchased a new stake in shares of Capital Bancorp during the second quarter worth about $308,000. State of Wisconsin Investment Board purchased a new position in Capital Bancorp during the 4th quarter valued at about $283,000. Occudo Quantitative Strategies LP bought a new position in Capital Bancorp during the 2nd quarter valued at approximately $249,000. Federated Hermes Inc. lifted its holdings in Capital Bancorp by 50.8% in the 4th quarter. Federated Hermes Inc. now owns 8,319 shares of the financial services provider's stock worth $234,000 after buying an additional 2,801 shares during the period. Finally, XTX Topco Ltd purchased a new stake in Capital Bancorp in the 4th quarter worth approximately $223,000. Hedge funds and other institutional investors own 56.14% of the company's stock.

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.