BlackRock Inc. Makes New $462.25 Million Investment in Banc of California, Inc. $BANC

Key Points

• BlackRock acquired 22.6 million shares of Banc of California in the second quarter, valued at approximately $462.3 million and representing a 14.67% stake. Institutional investors and hedge funds collectively own 86.88% of the company.
• Analysts maintain a generally positive outlook, with an average “Buy” rating and a consensus price target of $22.62, compared with the stock’s reported $18.66 opening price.
• Banc of California reported a significant quarterly loss of $1.61 per share versus the expected $0.40 profit, while revenue fell 94% year over year to $16.41 million. The bank nevertheless declared a quarterly dividend of $0.12 per share, yielding about 2.6% annually.

BlackRock Inc. bought a new position in shares of 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 (SEC). The fund bought 22,626,138 shares of the bank's stock, valued at approximately $462,252,000. BlackRock Inc. owned approximately 14.67% of Banc of California at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Triumph Capital Management purchased a new position in Banc of California during the 3rd quarter worth approximately $25,000. Navalign LLC acquired a new position in shares of Banc of California during the fourth quarter worth about $27,000. Western Wealth Management LLC acquired a new position in Banc of California during the 1st quarter worth approximately $29,000. Orion Capital Management LLC acquired a new position in Banc of California during the fourth quarter worth $35,000. Finally, Advisory Services Network LLC purchased a new position in shares of Banc of California in the 3rd quarter valued at about $36,000. 86.88% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

BANC has been the subject of several research analyst reports. Wells Fargo & Company began coverage on Banc of California in a research note on Monday, August 10th. They issued an "overweight" rating and a $23.00 price objective for the company. Piper Sandler boosted their price objective on shares of Banc of California from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Monday, April 27th. Weiss Ratings downgraded Banc of California from a "hold (c+)" rating to a "hold (c-)" rating in a research report on Friday. JPMorgan Chase & Co. boosted their price objective on shares of Banc of California from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Wednesday, July 1st. Finally, Citigroup decreased their target price 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. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $22.62.

Banc of California Stock Up 0.1%

Shares of NYSE BANC opened at $18.66 on Tuesday. 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, Inc. has a 1 year low of $15.33 and a 1 year high of $21.93. The stock's 50-day simple moving average is $20.08 and its 200-day simple moving average is $19.15. The firm has a market cap of $2.96 billion, a price-to-earnings ratio of -44.44 and a beta of 0.74.

Banc of California (NYSE:BANC - Get Free Report) last released its earnings results on Wednesday, July 29th. The bank reported ($1.61) EPS for the quarter, missing the consensus estimate of $0.40 by ($2.01). Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The business had revenue of $16.41 million for the quarter, compared to analysts' expectations of $295.32 million. During the same quarter last year, the company posted $0.31 earnings per share. The business's quarterly revenue was down 94.0% compared to the same quarter last year. As a group, equities analysts anticipate that Banc of California, Inc. will post 1.68 earnings per share for the current fiscal year.

Banc of California Announces Dividend

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

Insider Buying and Selling at Banc of California

In other Banc of California news, insider Olivia I. Lindsay sold 6,000 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total value of $117,000.00. Following the transaction, the insider owned 32,842 shares of the company's stock, valued at $640,419. This trade represents a 15.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.78% of the stock is currently owned by corporate insiders.

Banc of California Company Profile

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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