Banc of California, Inc. (NYSE:BANC) Receives Consensus Rating of "Buy" from Brokerages

Key Points

• Banc of California has a consensus “Buy” rating from 10 analysts, with six buys, two strong buys and two holds. The average 12-month price target is $22.63, versus a recent share price of $18.95.
• The bank reported a significant quarterly earnings miss, posting a loss of $1.61 per share versus the expected $0.40 profit, while revenue fell 94% year over year to $16.41 million.
• Institutional investors own 86.88% of the stock, and the company declared a quarterly dividend of $0.12 per share, equivalent to a 2.5% annualized yield.

Shares of Banc of California, Inc. (NYSE:BANC - Get Free Report) have been given a consensus recommendation of "Buy" by the ten research firms that are covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $22.6250.

Several research firms recently weighed in on BANC. Wells Fargo & Company assumed coverage on Banc of California in a research note on Monday, August 10th. They issued an "overweight" rating and a $23.00 price target on the stock. Weiss Ratings cut Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Barclays dropped their target price on Banc of California from $23.00 to $22.00 and set an "overweight" rating on the stock in a report on Monday, August 3rd. Citigroup cut their target price on Banc of California from $23.50 to $22.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. Finally, Wall Street Zen downgraded Banc of California from a "hold" rating to a "sell" rating in a report on Saturday, August 15th.

Insiders Place Their Bets

In other news, insider Olivia Lindsay sold 6,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total value of $117,000.00. Following the transaction, the insider owned 32,842 shares in the company, valued at approximately $640,419. This represents a 15.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.78% of the company's stock.

Hedge Funds Weigh In On Banc of California

Hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its position in Banc of California by 1,898.0% in the 2nd quarter. California State Teachers Retirement System now owns 3,721,161 shares of the bank's stock valued at $76,023,000 after acquiring an additional 3,534,915 shares in the last quarter. Nykredit A S bought a new stake in shares of Banc of California in the 2nd quarter worth $61,000. Two Sigma Securities LLC raised its stake in shares of Banc of California by 29.4% in the second quarter. Two Sigma Securities LLC now owns 32,709 shares of the bank's stock worth $668,000 after purchasing an additional 7,430 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Banc of California by 6.2% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 358,830 shares of the bank's stock valued at $7,331,000 after purchasing an additional 21,084 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its holdings in shares of Banc of California by 118.4% during the second quarter. Hsbc Holdings PLC now owns 224,746 shares of the bank's stock valued at $4,599,000 after purchasing an additional 121,826 shares in the last quarter. 86.88% of the stock is currently owned by hedge funds and other institutional investors.

Banc of California Price Performance

Shares of NYSE BANC opened at $18.95 on Monday. Banc of California has a 1 year low of $15.33 and a 1 year high of $21.93. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.89 and a quick ratio of 0.86. The company's 50-day moving average is $19.79 and its 200 day moving average is $19.04. The stock has a market capitalization of $3.00 billion, a P/E ratio of -45.12 and a beta of 0.73.

Banc of California (NYSE:BANC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The bank reported ($1.61) earnings per share for the quarter, missing the consensus estimate of $0.40 by ($2.01). Banc of California had a positive return on equity of 7.98% and a negative net margin of 1.44%.The firm had revenue of $16.41 million during the quarter, compared to analysts' expectations of $295.32 million. During the same period in the previous year, the company earned $0.31 earnings per share. Banc of California's revenue for the quarter was down 94.0% on a year-over-year basis. On average, sell-side analysts expect that Banc of California will post 1.68 earnings per share for the current year.

Banc of California Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 15th. Banc of California's dividend payout ratio is -114.29%.

Banc of California Company Profile

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.

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