North Reef Capital Management LP Buys New Holdings in RBB Bancorp $RBB

Key Points

• North Reef Capital Management disclosed a new first-quarter stake in RBB Bancorp, buying 64,150 shares valued at about $1.37 million. Institutional ownership remains significant, with funds and hedge funds holding about 40.14% of the stock.
• RBB has seen mixed insider and analyst activity: directors David Richard Morris and Chuang I. Lin sold shares recently, while analysts largely remain constructive. The stock has a Moderate Buy consensus rating with a $25.50 price target, though one firm upgraded and another downgraded the shares.
• The company reported better-than-expected earnings for the latest quarter, with EPS of $0.59 versus estimates of $0.54, and it also authorized a 1 million-share buyback. RBB Bancorp additionally announced a quarterly dividend of $0.16 per share, implying a 2.4% yield.

North Reef Capital Management LP purchased a new stake in shares of RBB Bancorp (NASDAQ:RBB - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 64,150 shares of the company's stock, valued at approximately $1,371,000. North Reef Capital Management LP owned 0.38% of RBB Bancorp at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Torren Management LLC purchased a new position in shares of RBB Bancorp in the 4th quarter worth about $28,000. BNP Paribas Financial Markets grew its holdings in shares of RBB Bancorp by 84.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 1,819 shares of the company's stock worth $31,000 after purchasing an additional 835 shares during the period. CANADA LIFE ASSURANCE Co purchased a new stake in shares of RBB Bancorp during the 4th quarter worth about $34,000. SG Americas Securities LLC acquired a new stake in RBB Bancorp during the 4th quarter worth approximately $112,000. Finally, Public Employees Retirement System of Ohio increased its position in RBB Bancorp by 17.9% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 6,593 shares of the company's stock worth $124,000 after purchasing an additional 1,000 shares in the last quarter. 40.14% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at RBB Bancorp

In other news, Director David Richard Morris sold 4,500 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $23.90, for a total value of $107,550.00. Following the completion of the transaction, the director directly owned 43,422 shares in the company, valued at approximately $1,037,785.80. This represents a 9.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Chuang I. Lin sold 10,000 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $24.23, for a total transaction of $242,300.00. Following the sale, the director directly owned 51,347 shares of the company's stock, valued at approximately $1,244,137.81. The trade was a 16.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 24,814 shares of company stock valued at $597,630. Corporate insiders own 6.78% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on RBB. Stephens lifted their price target on shares of RBB Bancorp from $26.00 to $29.00 and gave the company a "positive" rating in a research report on Thursday. Hovde Group raised shares of RBB Bancorp from a "market perform" rating to an "outperform" rating and raised their target price for the company from $26.00 to $29.00 in a research note on Tuesday, June 16th. Zacks Research downgraded shares of RBB Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Thursday. Finally, Weiss Ratings upgraded shares of RBB Bancorp from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday. Three research analysts have rated the stock with 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 $25.50.

RBB Bancorp Stock Performance

Shares of NASDAQ:RBB opened at $26.28 on Friday. The company has a market cap of $445.18 million, a P/E ratio of 10.81 and a beta of 1.03. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.06 and a current ratio of 1.06. RBB Bancorp has a one year low of $16.74 and a one year high of $28.24. The business's 50-day simple moving average is $25.53 and its 200 day simple moving average is $23.25.

RBB Bancorp (NASDAQ:RBB - Get Free Report) last released its quarterly earnings results on Monday, July 20th. The company reported $0.59 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $0.05. The firm had revenue of $33.10 million during the quarter, compared to analysts' expectations of $33.17 million. RBB Bancorp had a return on equity of 7.99% and a net margin of 17.26%. On average, sell-side analysts forecast that RBB Bancorp will post 2.37 earnings per share for the current fiscal year.

RBB Bancorp announced that its Board of Directors has authorized a stock repurchase plan on Monday, June 15th that allows the company to buyback 1,000,000 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

RBB Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, July 31st. RBB Bancorp's payout ratio is presently 26.34%.

RBB Bancorp Company Profile

RBB Bancorp is a bank holding company headquartered in Los Angeles, California, and the parent of Royal Business Bank. Established in 2008, the company focuses on providing a full range of commercial banking services tailored to small- and medium-sized businesses, professionals and real estate investors. Through its subsidiary, RBB Bancorp delivers deposit products, loan facilities and cash management solutions designed to support operations and growth strategies.

The company's core offerings include commercial real estate lending, construction and land development loans, Small Business Administration (SBA) lending and trade finance.

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