Banc of California, Inc. (NYSE:BANC) Stock Has Average Price Target of $22.50

Key Points

• Banc of California has a “Moderate Buy” consensus rating from 10 analysts, with seven buys and three holds. The average 12-month price target is $22.50 versus the stock’s reported price of $18.00.
• The bank reported a significant quarterly 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, led by new positions and increased holdings from firms including BlackRock and Wellington Management. The company also pays a quarterly dividend of $0.12, implying a 2.7% annualized yield.

Banc of California, Inc. (NYSE:BANC - Get Free Report) has earned a consensus rating of "Moderate Buy" from the ten ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1 year price objective among brokers that have covered the stock in the last year is $22.50.

A number of brokerages have weighed in on BANC. Weiss Ratings lowered Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a research report on Friday, August 21st. UBS Group initiated coverage on Banc of California in a report on Monday, September 14th. They issued a "neutral" rating and a $20.00 target price for the company. Wells Fargo & Company dropped their price target on Banc of California from $23.00 to $22.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 30th. JPMorgan Chase & Co. raised their price target on Banc of California from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Wednesday, July 1st. Finally, Wall Street Zen upgraded Banc of California from a "strong sell" rating to a "sell" rating in a research note on Sunday, September 27th.

Insider Activity

In other news, General Counsel Ido Dotan sold 10,541 shares of the business's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $18.30, for a total value of $192,900.30. Following the completion of the sale, the general counsel owned 45,702 shares in the company, valued at approximately $836,346.60. The trade was a 18.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Olivia I. Lindsay sold 6,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total transaction of $117,000.00. Following the completion of the sale, the insider owned 32,842 shares of the company's stock, valued at approximately $640,419. This represents a 15.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Banc of California

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Banc of California during the second quarter valued at approximately $462,252,000. Wellington Management Group LLP lifted its holdings in Banc of California by 147.2% during the second quarter. Wellington Management Group LLP now owns 6,121,876 shares of the bank's stock worth $125,070,000 after buying an additional 3,645,579 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Banc of California by 10.2% during the first quarter. Dimensional Fund Advisors LP now owns 6,464,447 shares of the bank's stock worth $113,640,000 after buying an additional 600,791 shares during the period. North Reef Capital Management LP boosted its position in Banc of California by 29.7% during the 1st quarter. North Reef Capital Management LP now owns 1,500,000 shares of the bank's stock valued at $26,370,000 after acquiring an additional 343,320 shares in the last quarter. Finally, Hodges Capital Management Inc. boosted its position in Banc of California by 5.6% during the 1st quarter. Hodges Capital Management Inc. now owns 1,462,302 shares of the bank's stock valued at $25,707,000 after acquiring an additional 77,012 shares in the last quarter. 86.88% of the stock is currently owned by institutional investors.

Banc of California Stock Performance

Banc of California stock opened at $18.00 on Tuesday. The company has a 50 day moving average price of $18.08 and a 200-day moving average price of $18.99. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.86 and a current ratio of 0.89. Banc of California has a fifty-two week low of $16.12 and a fifty-two week high of $21.93. The company has a market capitalization of $2.85 billion, a PE ratio of -42.87 and a beta of 0.77.

Banc of California (NYSE:BANC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The bank reported ($1.61) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($2.01). Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The firm had revenue of $16.41 million during the quarter, compared to analysts' expectations of $295.32 million. During the same quarter in the previous year, the firm posted $0.31 EPS. The firm's revenue for the quarter was down 94.0% on a year-over-year basis. As a group, equities analysts forecast that Banc of California will post 1.72 earnings per share for the current year.

Banc of California Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 15th were paid a $0.12 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.48 dividend on an annualized basis and a yield of 2.7%. Banc of California's dividend payout ratio is -114.29%.

About Banc of California

Banc of California, Inc is a bank holding company whose principal subsidiary, Banc of California, N.A., provides banking and financial services to businesses, professionals, nonprofit organizations and individuals. The bank operates as a full-service commercial bank, offering deposit accounts, commercial and consumer loans, home lending, treasury management, cash-management services and online and mobile banking.

The company primarily serves customers throughout California, with operations and relationships extending into select western markets.

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