Is Capital Bancorp (NASDAQ:CBNK) a Good Investment After Recent Trading Activity?

Recent trading activity for Capital Bancorp, Inc. (NASDAQ:CBNK) has captured the attention of investors after the company's shares experienced a noticeable increase in trading volume last Friday. During the mid-day session, a total of 25,049 shares were traded, marking an 8% decrease compared to the previous day’s volume of 27,275 shares. The stock's price was last recorded at $30.22, down from the previous closing price of $30.62.

Analyst Insights on Capital Bancorp

In a recent update, Keefe, Bruyette & Woods raised their price target for Capital Bancorp shares from $28.00 to $32.00. They categorized the company with a "market perform" rating in a research note released on December 4th.

Performance Overview

The financial health of Capital Bancorp shows positive indicators with a quick ratio of 1.02 and a current ratio of 1.03. The company maintains a debt-to-equity ratio of 0.23. Additionally, the stock's 50-day simple moving average stands at $27.12, while the 200-day average is $24.43. The market capitalization of Capital Bancorp is approximately $510.88 million, and the price-to-earnings ratio is at 13.14, with a beta of 0.50, suggesting moderate volatility compared to the market.

Looking into recent earnings, Capital Bancorp released its quarterly financial results on October 28th, where it reported an earnings per share (EPS) of $0.66. This result missed the analysts' consensus estimate of $0.68 by $0.02. The revenue reported was $59.25 million for the quarter, with a return on equity of 12.66% and a net margin of 14.49%. Analysts estimate that Capital Bancorp will achieve an EPS of 2.37 for the current fiscal year.

Dividend Details

Capital Bancorp also declared a quarterly dividend, which was disbursed on November 20th. Shareholders recorded as of November 4th received a dividend of $0.10 per share. This gives an annualized dividend total of $0.40, reflecting a yield of 1.30%. The ex-dividend date was set for November 4th, with a dividend payout ratio currently at 17.17%.

Insider Activity

In recent insider trading news, COO Steven M. Poynot purchased 2,000 shares on November 1st at an average price of $25.36, amounting to a total investment of $50,720. Following this purchase, his direct ownership rose to 4,503 shares valued at approximately $114,196.08, representing a significant increase of 79.90%. Furthermore, CFO Dominic C. Canuso acquired 1,000 shares on November 4th at an average price of $25.52, totaling $25,520. After this transaction, his holdings increased to 2,000 shares valued around $51,040, reflecting a 100.00% increase in ownership. Insiders collectively own about 32.50% of Capital Bancorp's stock.

Institutional Investor Movements

Several hedge funds have recently adjusted their positions concerning Capital Bancorp. In the third quarter, BNP Paribas Financial Markets increased its holdings by 317.1%, now owning 7,809 shares valued at $201,000 after acquiring an additional 5,937 shares. Connor Clark & Lunn Investment Management Ltd. invested in Capital Bancorp for about $276,000 during the same period. Barclays PLC also expanded its position by 297.3%, now holding 11,918 shares worth $306,000 after purchasing another 8,918 shares. Other notable investments during the second quarter included Renaissance Technologies LLC and Squarepoint Ops LLC, which each acquired new stakes valued at around $256,000 and $304,000, respectively. A collective 56.14% of Capital Bancorp shares are held by institutional investors.

Overview of Capital Bancorp

Capital Bancorp, Inc. serves as the bank holding company for Capital Bank, N.A., which offers various banking products and services to businesses, non-profit organizations, and entrepreneurs across Maryland, Virginia, and the District of Columbia. The company operates through multiple segments, including Commercial Banking, Capital Bank Home Loans, and OpenSky.

Capital, Bank, Investment