Hsbc Holdings PLC Buys New Position in Banc of California, Inc. $BANC

Key Points

• HSBC Holdings acquired 224,746 Banc of California shares worth approximately $4.6 million in the second quarter, while institutional investors and hedge funds collectively own 86.88% of the stock.
• Banc of California reported a significant quarterly miss, posting a loss of $1.61 per share versus analysts’ expected profit of $0.40, with revenue falling 94% year over year to $16.41 million.
• The bank declared a quarterly dividend of $0.12 per share, representing a 2.6% annualized yield. Despite mixed analyst actions, the stock carries a consensus “Buy” rating with an average price target of $22.62.

Hsbc Holdings PLC purchased a new position in Banc of California, Inc. (NYSE:BANC - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 224,746 shares of the bank's stock, valued at approximately $4,599,000. Hsbc Holdings PLC owned 0.15% of Banc of California as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of BANC. Navalign LLC bought a new stake in Banc of California in the 4th quarter valued at $27,000. Triumph Capital Management bought a new stake in shares of Banc of California during the third quarter valued at approximately $25,000. Western Wealth Management LLC bought a new stake in shares of Banc of California during the first quarter valued at approximately $29,000. Orion Capital Management LLC acquired a new position in shares of Banc of California in the fourth quarter valued at $35,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Banc of California by 38.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,023 shares of the bank's stock valued at $39,000 after purchasing an additional 564 shares in the last quarter. 86.88% of the stock is currently owned by institutional investors and hedge funds.

Banc of California Trading Down 0.6%

Shares of Banc of California stock opened at $18.62 on Friday. The stock has a market capitalization of $2.95 billion, a P/E ratio of -44.33 and a beta of 0.74. The company has a quick ratio of 0.86, a current ratio of 0.89 and a debt-to-equity ratio of 0.20. The company has a 50-day simple moving average of $19.98 and a 200 day simple moving average of $19.11. Banc of California, Inc. has a 12-month low of $15.33 and a 12-month high of $21.93.

Banc of California (NYSE:BANC - Get Free Report) last released its quarterly earnings results 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 analyst estimates of $295.32 million. Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. Banc of California's quarterly revenue was down 94.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.31 earnings per share. Research analysts expect 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. Stockholders of record on Tuesday, September 15th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Banc of California's payout ratio is presently -114.29%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on BANC. Brean Capital downgraded shares of Banc of California from a "buy" rating to a "neutral" rating in a research note on Thursday, July 30th. Wells Fargo & Company began coverage on shares of Banc of California in a research note on Monday, August 10th. They set an "overweight" rating and a $23.00 price target for the company. Wall Street Zen downgraded Banc of California from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. JPMorgan Chase & Co. upped their price objective on 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, Barclays dropped their target price on Banc of California from $23.00 to $22.00 and set an "overweight" rating for the company in a report on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Banc of California presently has a consensus rating of "Buy" and a consensus target price of $22.62.

Insider Activity at Banc of California

In related news, insider Olivia I. Lindsay sold 6,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $19.50, for a total transaction of $117,000.00. Following the sale, the insider directly owned 32,842 shares in the company, valued at $640,419. This represents a 15.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.78% of the stock is owned by insiders.

Banc of California 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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