Banc of California (NYSE:BANC) Hits New 52-Week High After Earnings Beat

Banc of California, Inc. (NYSE:BANC) reached a new 52-week high on Wednesday, driven by a strong earnings report that exceeded expectations. During trading, the stock peaked at $15.69 before closing at $15.47, with a total trading volume of 310,183 shares. This represents a notable rise from its previous close at $15.42.

For the recent quarter, Banc of California reported earnings of $0.25 per share (EPS), surpassing analysts' estimates, which averaged at $0.14. Additionally, the company generated revenue of $431.44 million for the quarter, significantly higher than the consensus estimate of $229.46 million. The bank also recorded a return on equity of 2.12%, although it faced a net margin of -21.99%. In comparison, the same quarter last year yielded earnings of $0.30 per share.

Banc of California Announces Dividend

The bank recently declared a quarterly dividend, which was distributed on Tuesday, October 1st. Shareholders recorded as of Monday, September 16th, received a dividend of $0.10 per share. The ex-dividend date was also September 16th. This translates to an annualized dividend of $0.40, resulting in a yield of 2.59%. Banc of California's payout ratio stands at -12.01%, indicating it retains a significant portion of its earnings.

Analysts Set New Price Targets

Various analysts have recently assessed Banc of California's stock and adjusted their price targets. On July 9th, Keefe, Bruyette & Woods lowered their price target from $18.00 to $17.00 while maintaining an “outperform” rating. Citigroup began coverage on Banc of California on October 10th with a “neutral” rating and a price target of $15.00. Wells Fargo increased its price target from $16.00 to $17.00 while assigning an “equal weight” rating. Similarly, Barclays also raised their target from $16.00 to $17.00 with an “equal weight” rating. Truist Financial adjusted its target upward from $15.00 to $16.00, giving the stock a “hold” rating. Currently, one analyst rates the stock as a sell, five as hold, and five as buy. The consensus rating is “Hold,” with an average target price of $17.20, according to MarketBeat.

Insider Activity at Banc of California

In related news, Director Richard J. Lashley sold 75,000 shares of Banc of California on September 4th for an average price of $14.00, totaling $1,050,000. After this transaction, Lashley holds 719,826 shares valued at around $10,077,564, marking a minor decrease in ownership. The details of this transaction were filed with the SEC and are available for public view. Insiders currently control 7.37% of the company's stock.

Institutional Investors Weigh In On Banc of California

Several institutional investors have updated their positions regarding Banc of California recently. Vanguard Group Inc. significantly increased its stake by 143.4% during the fourth quarter, now holding 9,014,810 shares worth approximately $121,069,000 after acquiring an additional 5,311,842 shares. PNC Financial Services Group Inc. raised its holdings by 54.5% in the same quarter, owning now 15,346 shares valued at $206,000. Additionally, Global Assets Advisory LLC and Future Financial Wealth Management LLC have established new positions in the bank with investments worth about $741,000 and $30,000 respectively. Hennessy Advisors Inc. also increased their stake by 44.3%, now holding 250,000 shares valued at approximately $3,802,000. Overall, institutional investors and hedge funds own 86.88% of Banc of California's stock.

Banc of California Price Performance

The stock has seen positive momentum, with a 50-day moving average price of $14.44 and a two-hundred day moving average of $13.91. The company's debt-to-equity ratio is reported at 0.32, with a current ratio of 0.89 and a quick ratio of 0.83. Its market capitalization is approximately $2.43 billion, with a price-to-earnings ratio of -4.64 and a beta of 1.14, indicating a higher volatility compared to the market.

About Banc of California

Banc of California, Inc operates as a bank holding company, offering a variety of banking products and services primarily in California. This includes options for deposits such as checking and savings accounts, money market accounts, and retirement plans, along with safe deposit services.

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