Andrew Barker, a director at Banc of California (BANC), recently bought 10,000 shares. The buy increased his stake by 5%, and came to a total cost of $131,560.
The buy came a few days after the President and CEO picked up 7,130 shares, paying just over $99,600 to increase his stake by 2%. Other company directors have also been buyers in recent months, but there have been some moderate insider sales for mixed results.
Overall, Banc of California insiders own 0.9% of shares.
The regional bank is essentially flat over the past year, slightly underperforming the S&P 500. Regional banks have been out of favor with the market as interest rates have stayed relatively high and amid concerns of an economic slowdown.
However, BANC has grown earnings by 74% over the past year, and shares trade at 12 times forward earnings and about a 30% discount to their book value.
Action to take: At current prices, BANC is well insulated against any short-term economic fears. The discount to book value is notable enough to potentially make the bank an acquisition candidate in the near future.
Plus, at current prices, Banc of California pays a 3% dividend.
For traders, shares are coming off a recent retest of the 52-week lows from last summer, which held. The October $15 calls, last trading for about $0.70, could see mid-to-high double-digit returns or better if the new trend holds.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.