DA Davidson Reiterates "Buy" Rating for Bay Commercial Bank (NASDAQ:BCML)

Key Points

• DA Davidson reiterated a "Buy" rating on Bay Commercial Bank with a $34.00 price target, implying roughly a 17.1% upside from the recent share price.
• The stock plunged to $29.04 on heavy volume (238,875 shares) after the firm reported Q results that missed expectations—EPS of $0.63 vs. $0.65 and reported revenue of $0.89M versus $25.03M expected—while the company has a market cap of ~$316.8M and a P/E of 13.32.
• Analyst coverage is mixed (two Buy, two Hold) giving an average rating of "Moderate Buy" with a $34 average target, and institutional investors own about 66.2% of the shares, led by Wellington Management as a major holder.

Bay Commercial Bank (NASDAQ:BCML - Get Free Report)'s stock had its "buy" rating restated by stock analysts at DA Davidson in a report released on Friday,Benzinga reports. They presently have a $34.00 price objective on the stock. DA Davidson's target price would suggest a potential upside of 17.08% from the company's current price.

Several other equities analysts have also commented on BCML. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bay Commercial Bank in a research note on Wednesday, January 21st. Zacks Research lowered Bay Commercial Bank from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 30th. Finally, Brean Capital lowered Bay Commercial Bank from a "buy" rating to a "neutral" rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Bay Commercial Bank currently has an average rating of "Moderate Buy" and an average price target of $34.00.

Bay Commercial Bank Price Performance

Shares of Bay Commercial Bank stock traded down $3.63 on Friday, hitting $29.04. 238,875 shares of the company were exchanged, compared to its average volume of 26,778. The stock has a market capitalization of $316.83 million, a price-to-earnings ratio of 13.32 and a beta of 0.29. The company has a 50-day moving average price of $29.75 and a 200 day moving average price of $29.23. Bay Commercial Bank has a 1-year low of $24.17 and a 1-year high of $33.15. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.03.

Bay Commercial Bank (NASDAQ:BCML - Get Free Report) last issued its quarterly earnings data on Thursday, January 22nd. The company reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.65 by ($0.02). The business had revenue of $0.89 million during the quarter, compared to analysts' expectations of $25.03 million. Bay Commercial Bank had a return on equity of 7.18% and a net margin of 16.92%. As a group, sell-side analysts predict that Bay Commercial Bank will post 2.48 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Invesco Ltd. increased its position in shares of Bay Commercial Bank by 7.2% during the fourth quarter. Invesco Ltd. now owns 10,667 shares of the company's stock worth $314,000 after acquiring an additional 716 shares during the period. Mercer Global Advisors Inc. ADV increased its position in shares of Bay Commercial Bank by 3.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 23,068 shares of the company's stock worth $678,000 after acquiring an additional 771 shares during the period. Empowered Funds LLC increased its position in shares of Bay Commercial Bank by 10.7% during the fourth quarter. Empowered Funds LLC now owns 51,001 shares of the company's stock worth $1,499,000 after acquiring an additional 4,930 shares during the period. Wellington Management Group LLP increased its position in shares of Bay Commercial Bank by 10.7% during the fourth quarter. Wellington Management Group LLP now owns 1,058,935 shares of the company's stock worth $31,133,000 after acquiring an additional 102,666 shares during the period. Finally, Bridgeway Capital Management LLC increased its position in shares of Bay Commercial Bank by 5.7% during the fourth quarter. Bridgeway Capital Management LLC now owns 91,814 shares of the company's stock worth $2,699,000 after acquiring an additional 4,930 shares during the period. 66.16% of the stock is currently owned by institutional investors and hedge funds.

About Bay Commercial Bank

Bay Commercial Bank is a bank holding company that offers a full suite of commercial and consumer banking services through its subsidiary, Bay Commercial Bank. The institution emphasizes relationship-driven banking, focusing on the needs of small and medium-sized businesses, professionals, and individual customers.

The bank's lending portfolio encompasses commercial real estate, construction and development financing, equipment loans, acquisition financing, and consumer credit products such as residential mortgages and personal lines of credit.

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