Capital Bancorp, Inc. (NASDAQ:CBNK) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Six analysts split evenly between “buy” and “hold” ratings, producing a “Moderate Buy” consensus and an average 12-month price target of $37.33.
• Capital Bancorp reported quarterly EPS of $0.87, beating estimates of $0.82, although revenue of $65.29 million fell short of the $66.54 million consensus.
• The company raised its quarterly dividend to $0.14 per share, equivalent to a $0.56 annualized payout and a 1.5% yield; institutional investors own 56.14% of outstanding shares.

Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the six analysts that are presently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $37.3333.

CBNK has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods lifted their price target on shares of Capital Bancorp from $35.00 to $40.00 and gave the stock a "market perform" rating in a research note on Monday, August 3rd. Raymond James Financial started coverage on shares of Capital Bancorp in a research report on Thursday. They issued a "market perform" rating on the stock. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Capital Bancorp in a research note on Tuesday, June 30th.

Capital Bancorp Price Performance

CBNK stock traded up $0.22 during midday trading on Thursday, hitting $36.65. The company's stock had a trading volume of 32,230 shares, compared to its average volume of 61,620. Capital Bancorp has a 12 month low of $26.40 and a 12 month high of $38.83. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $597.03 million, a price-to-earnings ratio of 10.78 and a beta of 0.51. The company has a 50 day moving average of $36.35 and a two-hundred day moving average of $32.94.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The financial services provider reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. The business had revenue of $65.29 million during the quarter, compared to the consensus estimate of $66.54 million. Capital Bancorp had a net margin of 17.47% and a return on equity of 13.14%. On average, analysts expect that Capital Bancorp will post 3.43 EPS for the current year.

Capital Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Monday, August 10th were paid a $0.14 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.56 annualized dividend and a yield of 1.5%. This is a boost from Capital Bancorp's previous quarterly dividend of $0.12. Capital Bancorp's payout ratio is 16.47%.

Institutional Investors Weigh In On Capital Bancorp

Several hedge funds have recently made changes to their positions in CBNK. BlackRock Inc. acquired a new stake in shares of Capital Bancorp in the 2nd quarter worth $27,625,000. Alliancebernstein L.P. boosted its stake in Capital Bancorp by 1.2% in the 2nd quarter. Alliancebernstein L.P. now owns 622,483 shares of the financial services provider's stock worth $20,903,000 after purchasing an additional 7,510 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Capital Bancorp by 5.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 355,466 shares of the financial services provider's stock worth $10,571,000 after purchasing an additional 17,264 shares during the last quarter. Geode Capital Management LLC increased its stake in Capital Bancorp by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 340,712 shares of the financial services provider's stock valued at $9,600,000 after purchasing an additional 5,016 shares in the last quarter. Finally, Kennedy Capital Management LLC increased its stake in Capital Bancorp by 0.3% during the 4th quarter. Kennedy Capital Management LLC now owns 262,462 shares of the financial services provider's stock valued at $7,394,000 after purchasing an additional 750 shares in the last quarter. 56.14% of the stock is currently owned by hedge funds and other institutional investors.

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.

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