Banc of California (NYSE:BANC) Reaches New 52-Week Peak After Earnings Surprise

Banc of California, Inc. (NYSE:BANC) saw its stock soar to a new 52-week high on Wednesday as it reported earnings that exceeded expectations. The stock climbed to a maximum of $15.69 during the day and closed at $15.47, with over 310,000 shares traded. Previously, the stock finished the day at $15.42.

For the recent quarter, Banc of California reported earnings of $0.25 per share, surpassing analysts' predictions of $0.14 by $0.11. The bank’s revenue totaled $431.44 million, greatly exceeding the estimated $229.46 million. The company achieved a return on equity of 2.12%, although it recorded a net margin of -21.99%. Last year, the company had earned $0.30 per share during the same quarter.

Banc of California Declares Dividend

Additionally, Banc of California declared a quarterly dividend, which was issued on October 1. Shareholders who were on record as of September 16 received a dividend of $0.10 per share. The ex-dividend date was also on September 16. This quarterly payment translates to an annual dividend of $0.40, resulting in a yield of 2.59%. Banc of California’s current payout ratio stands at -12.01%.

Analysts Update Price Targets

Several analysts have recently reassessed their price targets for Banc of California. Keefe, Bruyette & Woods downgraded their target from $18.00 to $17.00, maintaining an “outperform” rating. Citigroup has initiated coverage with a “neutral” rating and a target of $15.00. Meanwhile, Wells Fargo raised its price target from $16.00 to $17.00, issuing an “equal weight” rating. Barclays mirrored this adjustment from $16.00 to $17.00 with the same rating. Truist Financial also increased its target from $15.00 to $16.00, giving the stock a “hold” rating. One analyst rated the stock as a sell, five rated it as hold, and five analysts recommended a buy. The average target price across analysts currently stands at $17.20 with a consensus rating of “Hold.”

Stay Updated with Our Latest Stock Report on Banc of California

Insider Trading Activity

In related developments, Director Richard J. Lashley sold 75,000 shares on September 4 at an average price of $14.00, totaling $1,050,000 from the transaction. After this sale, Lashley retains ownership of 719,826 shares, valued around $10 million. This sale reflects no change in ownership percentage. The transaction has been detailed in SEC filings, which can be reviewed on the SEC website. Insiders collectively own about 7.37% of the company.

Institutional Investor Engagement

Various institutional investors and hedge funds have recently adjusted their holdings in Banc of California. The Vanguard Group increased its stake significantly by 143.4% in Q4, now owning approximately 9 million shares, valued at about $121 million. PNC Financial Services Group upped its position by 54.5% in Q4, holding 15,346 shares now worth $206,000. Global Assets Advisory acquired a new stake worth about $741,000 in the first quarter. Hennessy Advisors also upped its investment by 44.3%, now holding 250,000 shares worth about $3.8 million. Institutional investors and hedge funds own roughly 86.88% of Banc of California's stocks.

Stock Performance Overview

Banc of California has a 50-day moving average of $14.44 and a 200-day moving average of $13.91. Its debt-to-equity ratio stands at 0.32, with a current ratio of 0.89 and a quick ratio of 0.83. The company has a market capitalization of $2.43 billion, a price-to-earnings ratio of -4.64, and a beta of 1.14.

Introduction to Banc of California

Banc of California, Inc. serves as the bank holding company for its namesake, offering a wide range of banking products and services throughout California. The company provides checking and savings accounts, money market accounts, demand and time deposits, certificates of deposit, retirement accounts, and safe deposit boxes.

Banc, California, Earnings