RBB Bancorp (NASDAQ:RBB) Posts Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• RBB Bancorp beat earnings expectations, reporting quarterly EPS of $0.59 versus analyst estimates of $0.53. The bank also posted a net margin of 16.76% and return on equity of 7.85%.
• The company announced a new share repurchase program authorizing the buyback of up to 1,000,000 outstanding shares through open-market purchases. Buybacks can signal that management believes the stock is undervalued.
• Insiders recently sold shares, including director David Richard Morris and EVP Gary Fan, with total insider sales reaching 24,814 shares over the past 90 days. Despite that, institutional investors still own 40.14% of the company.

RBB Bancorp (NASDAQ:RBB - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.53 by $0.06, Zacks reports. RBB Bancorp had a net margin of 16.76% and a return on equity of 7.85%.

RBB Bancorp Stock Performance

RBB Bancorp stock traded down $0.32 during mid-day trading on Monday, reaching $26.74. The company's stock had a trading volume of 177,170 shares, compared to its average volume of 114,391. The firm has a market cap of $452.98 million, a price-to-earnings ratio of 11.33 and a beta of 1.03. The business has a 50 day moving average price of $25.21 and a 200-day moving average price of $23.06. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.50. RBB Bancorp has a twelve month low of $16.74 and a twelve month high of $28.24.

RBB Bancorp declared that its Board of Directors has initiated a stock buyback program on Monday, June 15th that permits the company to buyback 1,000,000 outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at RBB Bancorp

In other news, Director David Richard Morris sold 1,946 shares of RBB Bancorp stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $23.99, for a total value of $46,684.54. Following the completion of the transaction, the director directly owned 43,422 shares of the company's stock, valued at approximately $1,041,693.78. The trade was a 4.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Gary Fan sold 2,368 shares of RBB Bancorp stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $24.01, for a total transaction of $56,855.68. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 24,814 shares of company stock worth $597,630 over the last 90 days. Insiders own 6.78% of the company's stock.

Institutional Investors Weigh In On RBB Bancorp

Several institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP grew its holdings in shares of RBB Bancorp by 0.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 813,519 shares of the company's stock valued at $16,791,000 after purchasing an additional 4,999 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of RBB Bancorp by 4.2% in the 2nd quarter. Geode Capital Management LLC now owns 362,884 shares of the company's stock worth $6,246,000 after purchasing an additional 14,751 shares during the last quarter. State Street Corp lifted its holdings in shares of RBB Bancorp by 0.5% in the 4th quarter. State Street Corp now owns 320,706 shares of the company's stock worth $6,619,000 after purchasing an additional 1,550 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of RBB Bancorp by 80.1% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 200,190 shares of the company's stock worth $3,756,000 after purchasing an additional 89,035 shares during the last quarter. Finally, Bridgeway Capital Management LLC boosted its position in RBB Bancorp by 12.8% during the 4th quarter. Bridgeway Capital Management LLC now owns 158,067 shares of the company's stock valued at $3,263,000 after purchasing an additional 17,997 shares during the period. Institutional investors and hedge funds own 40.14% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on RBB shares. Zacks Research raised shares of RBB Bancorp from a "hold" rating to a "strong-buy" rating in a report on Monday, April 27th. Weiss Ratings raised shares of RBB Bancorp from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, May 11th. Finally, Hovde Group upgraded RBB Bancorp from a "market perform" rating to an "outperform" rating and lifted their price target for the stock from $26.00 to $29.00 in a research note on Tuesday, June 16th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $24.33.

About RBB Bancorp

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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