Wellington Management Group LLP Acquires 3,645,579 Shares of Banc of California, Inc. $BANC

Key Points

• Wellington Management increased its Banc of California stake by 147.2%, buying 3.65 million additional shares to hold 6.12 million shares worth approximately $125.1 million, or 3.86% of the company.
• Analysts maintain a generally positive view, with the stock carrying a consensus “Buy” rating and a $22.62 price target, despite some recent target-price cuts and one downgrade to “Neutral.”
• Banc of California reported a significant quarterly miss, posting a loss of $1.61 per share versus expectations for $0.40 in earnings, while revenue fell 94% year over year. The bank nevertheless announced a quarterly dividend of $0.12 per share, representing a 2.6% annualized yield.

Wellington Management Group LLP boosted its holdings in Banc of California, Inc. (NYSE:BANC - Free Report) by 147.2% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 6,121,876 shares of the bank's stock after purchasing an additional 3,645,579 shares during the period. Wellington Management Group LLP owned approximately 3.86% of Banc of California worth $125,070,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Orion Capital Management LLC purchased a new stake in Banc of California during the 2nd quarter valued at about $37,000. Empowered Funds LLC purchased a new position in Banc of California in the 2nd quarter worth approximately $14,452,000. Jefferies Financial Group Inc. purchased a new position in Banc of California in the 2nd quarter worth approximately $291,000. Public Employees Retirement System of Ohio bought a new stake in Banc of California in the second quarter valued at approximately $1,675,000. Finally, Bank of America Corp DE bought a new stake in Banc of California in the second quarter valued at approximately $22,404,000. 86.88% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Olivia I. Lindsay sold 6,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.50, for a total transaction of $117,000.00. Following the transaction, the insider owned 32,842 shares in the company, valued at $640,419. The trade was a 15.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.78% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Barclays decreased their target price on shares of Banc of California from $23.00 to $22.00 and set an "overweight" rating on the stock in a research note on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on shares of Banc of California from $22.00 to $24.00 and gave the stock an "overweight" rating in a report on Wednesday, July 1st. Wells Fargo & Company began coverage on shares of Banc of California in a research report on Monday, August 10th. They issued an "overweight" rating and a $23.00 price objective on the stock. Brean Capital downgraded shares of Banc of California from a "buy" rating to a "neutral" rating in a research note on Thursday, July 30th. Finally, Citigroup dropped their target price on shares of 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 investment 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 stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $22.62.

Banc of California Price Performance

Shares of Banc of California stock opened at $18.20 on Wednesday. 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 market cap of $2.88 billion, a PE ratio of -43.33 and a beta of 0.73. The business has a 50 day moving average of $19.90 and a 200 day moving average of $19.07. Banc of California, Inc. has a 52 week low of $15.33 and a 52 week 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) earnings per share for the quarter, missing the consensus estimate of $0.40 by ($2.01). The company had revenue of $16.41 million during the quarter, compared to the consensus estimate 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 business's revenue was down 94.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.31 EPS. As a group, equities research analysts forecast that Banc of California, Inc. will post 1.68 earnings per share for the current year.

Banc of California Dividend Announcement

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

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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