Banc of California Stock Drops After Insider Selling Activity

Banc of California, Inc. (NYSE:BANC) experienced a notable drop in share price during pre-market trading on Wednesday after reports of insider selling surfaced. The banking institution, which closed at $14.68 in the previous session, saw its stock open at a decreased value of $14.20. However, the shares managed a slight recovery, trading at $14.27 amidst a trade volume of 405,363 shares.

Insider Transactions Impact

The downward movement followed insider trading activity, including a purchase by Director James Andrew Barker who acquired 10,000 shares at $12.32 each, totaling an investment of $123,200. This transaction increased his ownership to 149,680 shares, worth approximately $1.84 million. Meanwhile, another director, Richard J. Lashley, sold 200,000 shares at an average price of $12.67, bringing in over $2.5 million, with his remaining stake in the bank valued at around $31.2 million.

Analyst Perspectives

Analysts have recently weighed in on Banc of California's outlook. Truist Financial increased its price target from $13.00 to $16.00 while maintaining a 'hold' position. New coverage from StockNews.com also recommended a 'hold' for the bank's shares. Wedbush lifted their price objective from $14.00 to $16.00, mirroring a 'neutral' stance. Overall, Banc of California holds an average 'hold' rating from analysts with a target price averaging $16.50.

Financial Position and Dividend

The bank has a market capitalization of $762.28 million, with a PE ratio currently standing at -4.20 and a beta of 1.16. Its financial health is further indicated by a debt-to-equity ratio of 0.32 and liquidity ratios below 1. Banc of California's quarterly earnings data revealed a shortfall, with a reported loss per share of $4.55, which was substantially below the estimated $0.28 loss per share. Year-over-year revenue was $193.06 million, surpassing expectations of $163.11 million. Despite a negative net margin, there was a positive return on equity. The company has declared a quarterly dividend, maintaining a $0.40 annualized payout, which translates to a yield of 3.01%.

Institutional Engagement

Recent movements by institutional investors and hedge funds indicate an active interest in Banc of California's stock. Positions have been both increased and decreased, with JPMorgan Chase & Co., Bank of New York Mellon Corp, American Century Companies Inc., and Citigroup Inc. among the notable institutions adjusting their investments in the company's stock.

About Banc of California

Banc of California operates chiefly in California, offering a variety of banking products and services tailored to small and medium-sized businesses. Their portfolio includes both personal and specialized banking services, ranging from the commonplace, like checking accounts and debit cards, to more niche offerings such as online and mobile banking solutions and personal credit products.

Banc, California, Stock, Insider, Trading, Analyst, Dividend, Institutional