Capital Bancorp (NASDAQ:CBNK) Posts Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Capital Bancorp missed quarterly expectations: It reported EPS of $0.89, $0.03 below consensus, while revenue of $68.12 million also fell short of the $69.01 million estimate.
• Shares rose to $41.69 after the results, near the company’s 52-week high of $41.89. Capital Bancorp reported a 17.47% net margin and 13.14% return on equity.
• Analyst sentiment is cautious: Several brokerages downgraded the stock to “hold” or “equal weight,” leaving it with a consensus “Hold” rating and an average price target of $39.67.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) announced its earnings results on Monday. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.92 by ($0.03), FiscalAI reports. Capital Bancorp had a net margin of 17.47% and a return on equity of 13.14%. The business had revenue of $68.12 million for the quarter, compared to analysts' expectations of $69.01 million.

Capital Bancorp Price Performance

CBNK traded up $0.40 on Monday, hitting $41.69. 146,280 shares of the company's stock were exchanged, compared to its average volume of 75,965. Capital Bancorp has a fifty-two week low of $26.40 and a fifty-two week high of $41.89. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.12. The firm has a 50-day moving average price of $37.54 and a 200-day moving average price of $35.05. The stock has a market cap of $679.13 million, a price-to-earnings ratio of 12.26 and a beta of 0.52.

Analysts Set New Price Targets

Several brokerages recently commented on CBNK. Hovde Group lowered shares of Capital Bancorp from a "strong-buy" rating to a "hold" rating and set a $42.00 price target for the company. in a report on Thursday, October 1st. Stephens cut shares of Capital Bancorp from an "overweight" rating to an "equal weight" rating in a research note on Friday, October 16th. Weiss Ratings upgraded shares of Capital Bancorp from a "buy (b)" rating to a "buy (b+)" rating in a research report on Wednesday, October 14th. Raymond James Financial began coverage on shares of Capital Bancorp in a research report on Thursday, September 3rd. They set a "market perform" rating for the company. Finally, Brean Capital lowered shares of Capital Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 30th. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $39.67.

Capital Bancorp Company Profile

Capital Bancorp, Inc is a bank holding company headquartered in Rockville, Maryland. Through its principal subsidiary, Capital Bank, N.A., the company provides commercial banking products and services to businesses, professionals and individuals.

Capital Bank offers business and commercial real estate lending, construction and development financing, residential mortgage lending, small-business lending, consumer loans and deposit accounts. Its services also include cash management, online and mobile banking, treasury management and other financial solutions designed for commercial and retail customers.

Founded in 1999, Capital Bancorp primarily serves communities in the Washington, DC, metropolitan area, including Maryland and Northern Virginia.

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