DA Davidson Upgrades Expectations for Banc of California's Earnings

Banc of California, Inc. (NYSE:BANC) has attracted attention as DA Davidson raised its earnings per share (EPS) estimates for the bank for the fiscal year 2025. In a recent research report published on January 28th, analyst G. Tenner revealed an updated forecast of $1.75 for earnings per share, a notable increase from the previous estimate of $1.35. Following this revision, DA Davidson has maintained a "Buy" rating on Banc of California's shares, setting a target price of $19.00.

In comparison, the consensus estimate for Banc of California's earnings for the current fiscal year stands at $0.71 per share. This revision by DA Davidson highlights a growing optimism regarding the bank's financial prospects.

On January 23rd, Banc of California reported its latest earnings results, revealing an EPS of $0.28 for the quarter, which surpassed the consensus estimate of $0.23 by $0.05. The bank recorded a return on equity of 2.93%, though it faced challenges with a negative net margin of 20.75%.

Several other analysts have taken interest in Banc of California recently. Notably, Keefe, Bruyette & Woods raised their target price for the stock from $17.50 to $20.00 while assigning an "outperform" rating. Barclays adjusted their price objective downward to $19.00, maintaining an "overweight" rating after their evaluation on January 24th. Similarly, Raymond James increased its target price to $18.00 and rated the stock as "outperform" on the same day. However, Stephens has reduced their price target from $18.00 to $17.00, designating an "equal weight" rating for Banc of California. Currently, there are four analysts with a hold rating and seven who recommend buying the stock, resulting in an average rating of "Moderate Buy" and an average price target of $18.20 according to MarketBeat data.

Stock Performance Overview

As of Thursday, shares of Banc of California opened at $16.06. The bank has a market capitalization of $2.55 billion and operates with a debt-to-equity ratio of 0.31. The current ratio and quick ratio stand at 0.89 each. The stock has seen a price-to-earnings ratio of -3.76 and carries a beta of 1.14. Over the past year, Banc of California shares have fluctuated, reaching a low of $11.88 and a high of $18.08.

Recent Dividend Announcement

In addition to the anticipated earnings growth, Banc of California also declared a quarterly dividend, which was distributed on January 2nd. Shareholders recorded on December 16th received a dividend of $0.10 per share, translating to an annualized dividend of $0.40 and a yield of 2.49%. Currently, the dividend payout ratio (DPR) for the bank is -9.37%, indicating potential room for improvement in their dividend policies.

Institutional Investors' Activity

Recent trading activities have shown increased interest from institutional investors in Banc of California. Future Financial Wealth Management LLC acquired a new stake in the bank during the third quarter, valued at approximately $29,000. GAMMA Investing LLC raised its holdings by 32.3%, bringing its total to 3,005 shares worth around $44,000. KBC Group NV also significantly increased its investment by 71.0% in the fourth quarter, totaling 7,286 shares valued at about $113,000. Other institutions, like Mendon Capital Advisors and Paloma Partners Management, have also entered or expanded their stakes in Banc of California. Notably, institutional and hedge funds own about 86.88% of the company's stock, underscoring strong institutional interest.

Company Profile

Banc of California, Inc. serves as the holding company for Banc of California, providing a variety of banking products and services, including checking and savings accounts, money market accounts, certificates of deposit, retirement accounts, and safe deposit boxes, specifically targeting clientele in California.

Earnings, Stocks, Investors