Banc of California, Inc. $BANC Shares Bought by Hsbc Holdings PLC

Key Points

• HSBC Holdings increased its Banc of California stake by 118.4% in the second quarter, ending with 224,746 shares valued at approximately $4.6 million. Institutional investors collectively own 86.88% of the bank.
• Banc of California reported a sharp quarterly loss of $1.61 per share, missing the $0.40 analyst estimate, while revenue fell 94% year over year to $16.41 million.
• The bank declared a quarterly dividend of $0.12 per share, equivalent to a 2.6% annualized yield. Analysts maintain a consensus “Buy” rating with an average price target of $22.62, despite mixed recent rating changes.

Hsbc Holdings PLC increased its position in Banc of California, Inc. (NYSE:BANC - Free Report) by 118.4% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 224,746 shares of the bank's stock after buying an additional 121,826 shares during the quarter. Hsbc Holdings PLC owned about 0.14% of Banc of California worth $4,599,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Wellington Management Group LLP boosted its position in Banc of California by 147.2% during the 2nd quarter. Wellington Management Group LLP now owns 6,121,876 shares of the bank's stock worth $125,070,000 after purchasing an additional 3,645,579 shares during the period. Orion Capital Management LLC purchased a new position in Banc of California in the second quarter valued at about $37,000. Empowered Funds LLC purchased a new position in Banc of California in the second quarter valued at about $14,452,000. Jefferies Financial Group Inc. acquired a new position in shares of Banc of California during the second quarter worth about $291,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Banc of California during the second quarter worth about $1,675,000. Hedge funds and other institutional investors own 86.88% of the company's stock.

Banc of California Price Performance

NYSE BANC opened at $18.37 on Friday. Banc of California, Inc. has a 12 month low of $15.33 and a 12 month high of $21.93. The firm has a market capitalization of $2.91 billion, a PE ratio of -43.73 and a beta of 0.73. The company's 50 day simple moving average is $19.64 and its 200 day simple moving average is $19.01. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.89 and a quick ratio of 0.86.

Banc of California (NYSE:BANC - Get Free Report) last released its 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 positive return on equity of 7.98% and a negative net margin of 1.44%.The firm had revenue of $16.41 million for the quarter, compared to analyst estimates of $295.32 million. During the same period in the previous year, the firm earned $0.31 earnings per share. Banc of California's revenue was down 94.0% on a year-over-year basis. As a group, equities research analysts forecast that Banc of California, Inc. will post 1.68 EPS for the current fiscal year.

Banc of California Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.48 dividend on an annualized basis and a yield of 2.6%. Banc of California's payout ratio is presently -114.29%.

Wall Street Analysts Forecast Growth

BANC has been the subject of several recent research reports. Brean Capital downgraded shares of Banc of California from a "buy" rating to a "neutral" rating in a research report on Thursday, July 30th. Wells Fargo & Company started coverage on Banc of California in a research note on Monday, August 10th. They issued an "overweight" rating and a $23.00 price target on the stock. Citigroup reduced their price target on Banc of California from $23.50 to $22.00 and set a "buy" rating for the company in a report on Friday, July 31st. Wall Street Zen lowered Banc of California from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Finally, Weiss Ratings cut Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Banc of California currently has a consensus rating of "Buy" and a consensus target price of $22.62.

Insiders Place Their Bets

In other news, insider Olivia Lindsay sold 6,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total transaction of $117,000.00. Following the transaction, the insider directly owned 32,842 shares in the company, valued at $640,419. The trade was a 15.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 2.78% of the company's stock.

About Banc of California

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.

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