Capital Bancorp (NASDAQ:CBNK) Stock Price Crosses Above Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• Capital Bancorp (NASDAQ:CBNK) shares rose above their 200-day moving average after reporting quarterly earnings of $0.85 EPS, which missed analysts' estimates of $0.89 by $0.04.
• The company declared a quarterly dividend of $0.10 per share, reflecting a 1.16% yield and a payout ratio of 16.13%.
• Analysts at Keefe, Bruyette & Woods have increased their price target for Capital Bancorp from $33.00 to $35.00, maintaining a "market perform" rating.

Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) shares passed above its 200-day moving average during trading on Monday following a stronger than expected earnings report. The stock has a 200-day moving average of $30.90 and traded as high as $34.57. Capital Bancorp shares last traded at $34.39, with a volume of 38,786 shares.

The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by ($0.04). Capital Bancorp had a return on equity of 16.06% and a net margin of 15.14%. The firm had revenue of $60.75 million for the quarter, compared to analysts' expectations of $61.29 million.

Capital Bancorp Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 27th. Stockholders of record on Monday, August 11th will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, August 11th. This is an increase from Capital Bancorp's previous quarterly dividend of $0.10. Capital Bancorp's dividend payout ratio is currently 14.98%.

Wall Street Analysts Forecast Growth

CBNK has been the topic of several recent analyst reports. Keefe, Bruyette & Woods increased their target price on shares of Capital Bancorp from $33.00 to $35.00 and gave the stock a "market perform" rating in a research note on Monday, May 12th. Hovde Group lifted their target price on shares of Capital Bancorp from $35.00 to $39.00 and gave the company an "outperform" rating in a research report on Tuesday.

Insider Activity

In related news, COO Steven M. Poynot bought 750 shares of the business's stock in a transaction on Wednesday, May 14th. The stock was acquired at an average cost of $33.35 per share, with a total value of $25,012.50. Following the purchase, the chief operating officer directly owned 5,253 shares of the company's stock, valued at $175,187.55. The trade was a 16.66% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 31.59% of the stock is owned by insiders.

Institutional Investors Weigh In On Capital Bancorp

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Federated Hermes Inc. raised its position in Capital Bancorp by 12.7% in the first quarter. Federated Hermes Inc. now owns 3,977 shares of the financial services provider's stock valued at $113,000 after purchasing an additional 449 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its stake in Capital Bancorp by 5.5% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 21,664 shares of the financial services provider's stock worth $614,000 after purchasing an additional 1,127 shares in the last quarter. Wells Fargo & Company MN lifted its stake in Capital Bancorp by 27.9% during the fourth quarter. Wells Fargo & Company MN now owns 5,400 shares of the financial services provider's stock worth $154,000 after purchasing an additional 1,177 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its stake in Capital Bancorp by 19.5% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 10,749 shares of the financial services provider's stock worth $306,000 after purchasing an additional 1,754 shares in the last quarter. Finally, Bank of America Corp DE lifted its stake in Capital Bancorp by 33.8% during the fourth quarter. Bank of America Corp DE now owns 11,365 shares of the financial services provider's stock worth $324,000 after purchasing an additional 2,873 shares in the last quarter. Hedge funds and other institutional investors own 56.14% of the company's stock.

Capital Bancorp Stock Down 1.8%

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.03 and a quick ratio of 1.01. The business has a 50 day simple moving average of $33.24 and a 200 day simple moving average of $30.94. The company has a market capitalization of $514.96 million, a price-to-earnings ratio of 11.58 and a beta of 0.69.

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.