Banc of California (NYSE:BANC) Downgraded by Brean Capital to “Neutral”

Banc of California (NYSE:BANC) was downgraded by research analysts at Brean Capital from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Thursday, MarketBeat.com reports.

A number of other research analysts have also recently commented on BANC. Piper Sandler increased their target price on shares of Banc of California from $22.00 to $23.00 and gave the stock an “overweight” rating in a report on Monday, April 27th. JPMorgan Chase & Co. lifted their price target on shares of Banc of California from $22.00 to $24.00 and gave the company an “overweight” rating in a report on Wednesday, July 1st. Barclays lowered their price objective on shares of Banc of California from $25.00 to $23.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. Weiss Ratings downgraded shares of Banc of California from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, June 4th. Finally, DA Davidson restated a “buy” rating and issued a $24.00 target price on shares of Banc of California in a research report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $22.69.

Banc of California Trading Down 12.2%

Shares of BANC opened at $18.59 on Thursday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89. Banc of California has a 52-week low of $13.96 and a 52-week high of $21.93. The firm has a market cap of $2.87 billion, a price-to-earnings ratio of 14.19 and a beta of 0.73. The business’s fifty day moving average is $20.10 and its 200-day moving average is $19.30.

Banc of California (NYSE:BANC) last announced its quarterly earnings data on Wednesday, July 29th. The bank reported ($1.61) earnings per share for the quarter, missing the consensus estimate of $0.40 by ($2.01). The business had revenue of $164.05 million for the quarter, compared to the consensus estimate of $295.32 million. Banc of California had a return on equity of 9.25% and a net margin of 13.58%.Banc of California’s quarterly revenue was down 94.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.31 earnings per share. Equities analysts anticipate that Banc of California will post 1.71 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Navalign LLC bought a new position in Banc of California in the 4th quarter valued at approximately $27,000. Triumph Capital Management bought a new stake in Banc of California during the 3rd quarter worth approximately $25,000. Western Wealth Management LLC acquired a new position in Banc of California in the 1st quarter valued at approximately $29,000. Orion Capital Management LLC acquired a new position in Banc of California in the 4th quarter valued at approximately $35,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Banc of California by 38.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,023 shares of the bank’s stock valued at $39,000 after acquiring an additional 564 shares during the last quarter. Institutional investors and hedge funds own 86.88% of the company’s stock.

Key Stories Impacting Banc of California

Here are the key news stories impacting Banc of California this week:

• Positive Sentiment: Management expects the repositioning to improve future earnings, targeting a 3.30%-3.40% net interest margin and $125 million-$130 million in fourth-quarter pretax, pre-provision income. Banc of California targets fourth-quarter net interest margin and pretax income
• Positive Sentiment: Despite the restructuring, average loans increased $556.1 million, or 2.3%, deposits rose $799 million, or 2.9%, and the company reported 9% annualized loan growth and 12% annualized deposit growth. Book value was $18.38 per share, while estimated Tier 1 and CET1 capital ratios were 11.67% and 9.25%, respectively. Banc of California second-quarter results and strategic repositioning
• Neutral Sentiment: The bank is repositioning its balance sheet through a $2.3 billion securities transaction, a planned sale of $827 million in loans and the retirement of $385 million of subordinated debt. Management views the moves as a way to enhance long-term earnings, but investors must weigh the near-term costs and execution risk. Banc of California stock falls after balance-sheet changes
• Negative Sentiment: Banc of California reported a $251.3 million net loss available to common shareholders, or a loss of $1.61 per diluted share, versus analysts’ expected profit of approximately $0.40 per share. Revenue was $164.05 million, well below the $295.32 million consensus estimate and sharply lower year over year. Banc of California shares gap down on disappointing earnings
• Negative Sentiment: The securities repositioning generated a $256.7 million pretax loss, making the quarter’s results look particularly weak and raising concerns about near-term profitability. The earnings miss prompted the stock to gap lower as investors focused on the magnitude of the loss rather than the bank’s growth metrics. Banc of California takes a large second-quarter loss due to restructuring

Banc of California Company Profile

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.