Capital Bancorp (NASDAQ:CBNK) Sees Large Volume Increase - Here's Why

Key Points

• Capital Bancorp’s trading volume surged 149% to 164,012 shares, with the stock rising 1.3% to approximately $40.27.
• Analyst sentiment remains cautious: the consensus rating is “Hold” from seven analysts, with an average price target of $39.67. Recent firms including Hovde Group and Brean Capital downgraded the stock to Hold.
• The company exceeded quarterly EPS expectations, reporting $0.87 versus the $0.82 estimate, and raised its quarterly dividend from $0.12 to $0.14 per share, implying a 1.4% yield.

Shares of Capital Bancorp, Inc. (NASDAQ:CBNK - Get Free Report) saw unusually-high trading volume on Friday. 164,012 shares traded hands during mid-day trading, an increase of 149% from the previous session's volume of 65,997 shares. The stock last traded at $40.2720 and had previously closed at $39.80.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Hovde Group cut Capital Bancorp from a "strong-buy" rating to a "hold" rating and set a $42.00 price target on the stock. in a report on Thursday. Keefe, Bruyette & Woods raised their target price on Capital Bancorp from $35.00 to $40.00 and gave the stock a "market perform" rating in a research report on Monday, August 3rd. Brean Capital lowered shares of Capital Bancorp from a "strong-buy" rating to a "hold" rating in a research report on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of Capital Bancorp in a research note on Friday, September 25th. Finally, Raymond James Financial assumed coverage on shares of Capital Bancorp in a report on Thursday, September 3rd. They issued a "market perform" rating on the stock. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Capital Bancorp currently has a consensus rating of "Hold" and a consensus target price of $39.67.

Capital Bancorp Trading Up 1.3%

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.12. The stock's 50 day moving average price is $36.84 and its 200-day moving average price is $33.90. The stock has a market capitalization of $656.65 million, a PE ratio of 11.86 and a beta of 0.52.

Capital Bancorp (NASDAQ:CBNK - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The financial services provider reported $0.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.82 by $0.05. The business had revenue of $65.29 million during the quarter, compared to analyst estimates of $66.54 million. Capital Bancorp had a return on equity of 13.14% and a net margin of 17.47%. On average, sell-side analysts expect that Capital Bancorp, Inc. will post 3.47 earnings per share for the current fiscal year.

Capital Bancorp Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Monday, August 10th were paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.4%. The ex-dividend date was Monday, August 10th. This is a positive change from Capital Bancorp's previous quarterly dividend of $0.12. Capital Bancorp's dividend payout ratio is currently 16.47%.

Hedge Funds Weigh In On Capital Bancorp

Several hedge funds have recently modified their holdings of CBNK. Sequoia Financial Advisors LLC purchased a new position in Capital Bancorp during the second quarter valued at $324,000. Squarepoint Ops LLC grew its position in shares of Capital Bancorp by 31.9% during the second quarter. Squarepoint Ops LLC now owns 137,954 shares of the financial services provider's stock valued at $4,845,000 after purchasing an additional 33,402 shares in the last quarter. Susquehanna Fundamental Investments LLC purchased a new stake in shares of Capital Bancorp in the second quarter worth about $310,000. Empowered Funds LLC bought a new position in Capital Bancorp during the second quarter valued at approximately $3,664,000. Finally, Bank of America Corp DE purchased a new position in Capital Bancorp during the 2nd quarter valued at approximately $705,000. Hedge funds and other institutional investors own 56.14% of the company's stock.

Capital Bancorp Company Profile

Capital Bancorp, Inc is a bank holding company headquartered in Rockville, Maryland. Through its principal subsidiary, Capital Bank, N.A., the company provides commercial and consumer banking services to individuals, businesses, nonprofit organizations, and government contractors.

Capital Bank offers deposit accounts, commercial and residential real estate lending, commercial and industrial loans, small business financing, treasury management, mortgage lending, and other banking services.

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