Bank of America Corp DE Acquires New Position in Banc of California, Inc. $BANC

Key Points

• Bank of America acquired 1.10 million shares of Banc of California in the second quarter, valued at approximately $22.4 million and representing about 0.69% of the bank. Institutional investors collectively own 86.88% of BANC.
• Banc of California reported a significant quarterly earnings miss, posting a loss of $1.61 per share versus analysts’ expected profit of $0.40, while revenue fell 94% year over year to $16.41 million.
• The company declared a quarterly dividend of $0.12, equivalent to an annualized $0.48 payout and a 2.7% yield. Analysts maintain a consensus “Moderate Buy” rating with a $21.00 price target, despite BANC shares opening at $17.73.

Bank of America Corp DE acquired a new stake in Banc of California, Inc. (NYSE:BANC - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 1,096,631 shares of the bank's stock, valued at approximately $22,404,000. Bank of America Corp DE owned about 0.69% of Banc of California at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of BANC. BlackRock Inc. purchased a new position in Banc of California during the second quarter worth approximately $462,252,000. William Blair Investment Management LLC acquired a new position in shares of Banc of California during the 2nd quarter valued at about $25,521,000. Bank of New York Mellon Corp purchased a new stake in shares of Banc of California in the second quarter valued at about $22,019,000. Assenagon Asset Management S.A. acquired a new stake in Banc of California during the second quarter worth about $21,767,000. Finally, Polar Asset Management Partners Inc. raised its stake in Banc of California by 168.8% during the first quarter. Polar Asset Management Partners Inc. now owns 1,127,558 shares of the bank's stock worth $19,822,000 after purchasing an additional 708,028 shares during the period. 86.88% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, General Counsel Ido Dotan sold 10,541 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $18.30, for a total value of $192,900.30. Following the completion of the transaction, the general counsel directly owned 45,702 shares of the company's stock, valued at $836,346.60. This represents a 18.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Olivia I. Lindsay sold 6,000 shares of the stock in a transaction that occurred 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 completion of the transaction, the insider owned 32,842 shares in the company, valued at $640,419. This represents a 15.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.78% of the stock is currently owned by company insiders.

Banc of California Stock Down 2.0%

BANC stock opened at $17.73 on Thursday. The company's 50 day moving average price is $19.25 and its 200 day moving average price is $18.98. The firm has a market capitalization of $2.81 billion, a price-to-earnings ratio of -42.21 and a beta of 0.73. Banc of California, Inc. has a fifty-two week low of $15.33 and a fifty-two week high of $21.93. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.86 and a current ratio of 0.89.

Banc of California (NYSE:BANC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The bank reported ($1.61) EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($2.01). The firm had revenue of $16.41 million during the quarter, compared to analysts' expectations of $295.32 million. Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The company's revenue for the quarter was down 94.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.31 earnings per share. On average, equities research analysts anticipate that Banc of California, Inc. will post 1.69 EPS for the current fiscal year.

Banc of California Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be issued a $0.12 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.7%. Banc of California's dividend payout ratio is presently -114.29%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Brean Capital lowered shares of Banc of California from a "buy" rating to a "neutral" rating in a research report on Thursday, July 30th. Barclays set a $10.00 price objective on Banc of California in a research report on Tuesday, September 15th. UBS Group initiated coverage on shares of Banc of California in a research report on Monday, September 14th. They issued a "neutral" rating and a $20.00 target price on the stock. JPMorgan Chase & Co. lifted their price target on shares of Banc of California from $22.00 to $24.00 and gave the company an "overweight" rating in a research report on Wednesday, July 1st. Finally, Citigroup decreased their price objective on shares of Banc of California from $23.50 to $22.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $21.00.

Banc of California Profile

Banc of California, Inc is the holding company for Banc of California, a relationship-focused financial institution headquartered in California. The bank provides banking and financial services to businesses, entrepreneurs, professionals, individuals and families, with a focus on supporting the state's local communities and economy.

Its offerings include commercial and industrial lending, commercial real estate financing, residential mortgage lending, consumer loans, business and personal deposit accounts, treasury management, online and mobile banking, and other cash-management services.

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