Banc of California, Inc. (NYSE:BANC) Declares Quarterly Dividend of $0.10

Banc of California, Inc. (NYSE:BANC) has announced a quarterly dividend of $0.10 per share, set to be paid to shareholders who are on record as of Monday, December 16th. The dividend will be distributed on Thursday, January 2nd, 2024. This dividend corresponds to an annualized payout of $0.40, resulting in a dividend yield of 2.45%. The ex-dividend date for this payment is also Monday, December 16th.

This marks a notable increase, as Banc of California has averaged an 18.6% annual growth in its dividend payments over the last three years. Currently, the company's dividend payout ratio sits at 30.8%, indicating a sustainable distribution capable of being met by its earnings. Analysts project that Banc of California will achieve earnings of $1.33 per share next year, further suggesting that it can comfortably continue its $0.40 dividend policy with a forecasted future payout ratio of 30.1%.

Recent Stock Performance

On the trading front, shares of Banc of California experienced a 1.0% rise, with stock prices increasing by $0.16 to reach $16.31 during trading on Friday. The trading volumes were about 2,554,962 shares, which is slightly above the average volume of 2,541,043 shares. Presently, the stock maintains a fifty-day moving average of $14.76 and a 200-day moving average of $14.02. Over the past year, Banc of California's shares have ranged between a low of $11.10 and a high of $16.92. The company presents a quick ratio and a current ratio of 0.89 and a debt-to-equity ratio of 0.31.

Banc of California recently released its quarterly earnings on October 22nd, reporting earnings per share of $0.25, surpassing analyst expectations of $0.14 by $0.11. The bank generated revenue of $431.44 million for the quarter, dramatically exceeding estimates of $229.46 million. Despite a negative net margin of 20.75%, it recorded a positive return on equity of 2.93%. The previous year’s performance for the same period showed earnings per share of $0.30. Analysts foresee an average of $0.71 earnings per share for the current fiscal year.

Insider Transactions

In related developments, Banc of California's Director Richard J. Lashley sold 75,000 shares on September 4th at an average share price of $14.00, totaling $1,050,000. As a result of this transaction, Lashley maintains ownership of 719,826 shares valued at approximately $10,077,564. This sale did not alter the director's overall ownership percentage in the company. The sale was made public through a filing with the Securities and Exchange Commission. It is worth noting that company insiders hold about 7.37% of the firm’s stock.

Analysts' Assessments

New reports from various financial institutions have set new price targets for Banc of California's stock. Wedbush has raised its target price from $18.00 to $19.00 while maintaining an 'outperform' rating, as documented in their report on October 23rd. Similarly, Raymond James has increased their price target from $16.00 to $17.00, also with an 'outperform' rating. Wells Fargo has adopted a similar approach, adjusting their target price from $16.00 to $17.00, indicating an 'equal weight' rating. On October 31st, Barclays upgraded its rating from 'equal weight' to 'overweight' and increased its price target to $18.00. Lastly, Stephens adjusted their price target from $15.00 to $16.00, retaining an 'equal weight' rating. Currently, one analyst has rated Banc of California a sell, four have rated it hold, and six have given it a buy rating, leading to a consensus rating of 'Hold' and an average target price of $17.30.

Company Overview

Banc of California operates as a bank holding company that provides various banking services throughout California. Their offerings include checking and savings accounts, money market accounts, time deposits, retirement accounts, and safe deposit boxes.

dividend, stocks, performance