California BanCorp (NASDAQ:BCAL) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts rate California BanCorp a “Moderate Buy”: Five of six covering brokerages recommend buying the stock, while one recommends holding it. The average 12-month price target is $24.50, above the reported $21.23 opening price.
• Quarterly earnings exceeded expectations: California BanCorp reported earnings of $0.44 per share versus the $0.40 consensus estimate, though revenue of $44.08 million came in below expectations of $45.07 million.
• The company raised its quarterly dividend to $0.12 per share from $0.10, implying an annualized dividend of $0.48 and a 2.3% yield. Institutional investors own 55.4% of the stock, while an insider recently sold 7,500 shares.

California BanCorp (NASDAQ:BCAL - Get Free Report) has earned an average recommendation of "Moderate Buy" from the six brokerages that are currently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $24.50.

A number of equities analysts have recently commented on BCAL shares. Zacks Research cut California BanCorp from a "strong-buy" rating to a "hold" rating in a report on Monday, August 24th. Stephens raised their price target on shares of California BanCorp from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Raymond James Financial assumed coverage on shares of California BanCorp in a report on Thursday, August 20th. They set an "outperform" rating and a $25.00 price target on the stock. Keefe, Bruyette & Woods upped their price objective on shares of California BanCorp from $23.00 to $24.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 4th. Finally, DA Davidson upped their price objective on shares of California BanCorp from $23.50 to $25.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th.

California BanCorp Price Performance

NASDAQ:BCAL opened at $21.23 on Monday. California BanCorp has a 12-month low of $15.85 and a 12-month high of $22.41. The stock's 50 day moving average price is $21.55 and its two-hundred day moving average price is $20.18. The firm has a market capitalization of $682.54 million, a price-to-earnings ratio of 11.54 and a beta of 0.91.

California BanCorp (NASDAQ:BCAL - Get Free Report) last released its quarterly earnings results on Monday, July 27th. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.04. California BanCorp had a net margin of 26.01% and a return on equity of 10.44%. The firm had revenue of $44.08 million for the quarter, compared to analysts' expectations of $45.07 million. Equities research analysts expect that California BanCorp will post 1.74 EPS for the current year.

California BanCorp Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Monday, September 21st will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, September 21st. This is a positive change from California BanCorp's previous quarterly dividend of $0.10. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.3%. California BanCorp's payout ratio is 26.09%.

Insiders Place Their Bets

In other California BanCorp news, Director Lester Machado sold 7,500 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $21.19, for a total transaction of $158,925.00. Following the sale, the director directly owned 22,391 shares of the company's stock, valued at $474,465.29. The trade was a 25.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 8.14% of the stock is owned by insiders.

Institutional Investors Weigh In On California BanCorp

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in California BanCorp during the 2nd quarter valued at approximately $40,129,000. The Manufacturers Life Insurance Company increased its stake in California BanCorp by 4.6% in the first quarter. The Manufacturers Life Insurance Company now owns 795,309 shares of the company's stock valued at $14,093,000 after purchasing an additional 34,945 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of California BanCorp by 49.5% during the first quarter. Dimensional Fund Advisors LP now owns 470,192 shares of the company's stock valued at $8,331,000 after purchasing an additional 155,744 shares during the period. Mendon Capital Advisors Corp boosted its position in shares of California BanCorp by 58.7% during the 1st quarter. Mendon Capital Advisors Corp now owns 404,369 shares of the company's stock worth $7,165,000 after purchasing an additional 149,491 shares in the last quarter. Finally, Algebris UK Ltd. acquired a new position in shares of California BanCorp during the second quarter worth approximately $8,360,000. Institutional investors own 55.40% of the company's stock.

California BanCorp Company Profile

California BanCorp is a bank holding company headquartered in California and the parent company of California Bank of Commerce. Through its banking subsidiary, the company provides relationship-based financial services primarily to businesses, professional practices, nonprofit organizations and individuals.

California Bank of Commerce offers commercial and business banking products, including deposit accounts, commercial real estate and business loans, lines of credit, equipment financing, treasury management and cash-management services.

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