Insider Trading Report: Banc of California (BANC)

Joseph Rice, a director at Banc of California (BANC), recently bought 7,500 shares. The buy increased his holdings by 85 percent, and came to a total cost of $84,375.

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  • This is the first insider activity in a month, when another director bought 3,200 shares in early May for about $35,000. Company insiders have been buyers so far this year, including over $1 million from a third director across multiple transactions.

    Overall, insiders at the regional bank own 1.9 percent of shares.

    The bank is down just under 30 percent in the past year. Shares hit a low under $10 during the banking crisis in March, and trade about 30 percent higher from that low today.

    While a slowing economy and rising interest rates have hit profitability, the bank still trades at a 20 percent discount to its book value.

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  • Action to take: Investors may like shares as a rebound play in the banking sector. The drop in shares has pushed the dividend yield to 3.1 percent. With a dividend payout ratio less than 20 percent of earnings, there’s room for more dividend increases in the years ahead.

    For traders, the move higher in shares is likely to continue. The October $15 calls, last going for about $0.40, can potentially see mid-double-digit returns on a further uptrend in shares.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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