Comerica Bank Lowers Stake in Capital Bancorp, Inc. $CBNK

Key Points

• Comerica Bank has significantly reduced its stake in Capital Bancorp, Inc., selling 20,928 shares and lowering its holdings by 62.7% in the first quarter.
• Capital Bancorp has increased its quarterly dividend from $0.10 to $0.12 per share, representing a dividend yield of 1.4%.
• Analysts have given Capital Bancorp an average rating of "Moderate Buy" despite a recent downgrade by Wall Street Zen, with a current price target of $37.00.

Comerica Bank trimmed its position in shares of Capital Bancorp, Inc. (NASDAQ:CBNK - Free Report) by 62.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 12,470 shares of the financial services provider's stock after selling 20,928 shares during the quarter. Comerica Bank owned approximately 0.07% of Capital Bancorp worth $353,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Janney Montgomery Scott LLC acquired a new stake in shares of Capital Bancorp during the first quarter valued at about $464,000. Russell Investments Group Ltd. raised its position in shares of Capital Bancorp by 6.7% during the first quarter. Russell Investments Group Ltd. now owns 114,276 shares of the financial services provider's stock worth $3,237,000 after acquiring an additional 7,157 shares during the last quarter. Ackerman Asset Management LLC bought a new position in shares of Capital Bancorp during the first quarter worth about $1,020,000. Northern Trust Corp raised its position in shares of Capital Bancorp by 12.9% during the fourth quarter. Northern Trust Corp now owns 89,869 shares of the financial services provider's stock worth $2,561,000 after acquiring an additional 10,245 shares during the last quarter. Finally, Nuveen LLC bought a new position in shares of Capital Bancorp during the first quarter worth about $666,000. 56.14% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Capital Bancorp

In related news, Director Randall James Levitt sold 37,338 shares of Capital Bancorp stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $34.37, for a total value of $1,283,307.06. Following the completion of the sale, the director owned 60,000 shares of the company's stock, valued at $2,062,200. The trade was a 38.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 31.59% of the company's stock.

Analysts Set New Price Targets

CBNK has been the subject of a number of analyst reports. Wall Street Zen downgraded Capital Bancorp from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Hovde Group boosted their price objective on Capital Bancorp from $35.00 to $39.00 and gave the company an "outperform" rating in a report on Tuesday, July 29th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $37.00.

Capital Bancorp Stock Performance

CBNK stock traded down $0.48 during midday trading on Friday, hitting $33.22. The company's stock had a trading volume of 28,014 shares, compared to its average volume of 51,634. The stock's 50-day moving average price is $33.63 and its 200 day moving average price is $31.46. The company has a quick ratio of 1.01, a current ratio of 1.02 and a debt-to-equity ratio of 0.09. Capital Bancorp, Inc. has a 1 year low of $24.10 and a 1 year high of $36.40. The stock has a market cap of $550.79 million, a price-to-earnings ratio of 12.44 and a beta of 0.74.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.89 by ($0.04). The company had revenue of $60.75 million for the quarter, compared to analysts' expectations of $61.29 million. Capital Bancorp had a return on equity of 15.54% and a net margin of 15.14%. On average, equities analysts forecast that Capital Bancorp, Inc. will post 3.17 EPS for the current year.

Capital Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 27th. Investors of record on Monday, August 11th were given a dividend of $0.12 per share. This is a boost from Capital Bancorp's previous quarterly dividend of $0.10. The ex-dividend date of this dividend was Monday, August 11th. This represents a $0.48 dividend on an annualized basis and a yield of 1.4%. Capital Bancorp's dividend payout ratio is 17.98%.

Capital Bancorp Profile

Capital Bancorp, Inc operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments.