Capital Bancorp (NASDAQ:CBNK) Stock Dropped to “Hold” by Brean Capital

Brean Capital cut shares of Capital Bancorp (NASDAQ:CBNK) from a strong-buy rating to a hold rating in a research note released on Wednesday morning,Zacks reports.

CBNK has been the subject of a number of other research reports. Raymond James Financial began coverage on shares of Capital Bancorp in a research report on Thursday, September 3rd. They set a “market perform” rating for the company. Hovde Group lowered Capital Bancorp from a “strong-buy” rating to a “market perform” rating and set a $42.00 price target on the stock. in a research note on Thursday. Weiss Ratings reiterated a “buy (b)” rating on shares of Capital Bancorp in a research report on Friday, September 25th. Finally, Keefe, Bruyette & Woods boosted their price objective on Capital Bancorp from $35.00 to $40.00 and gave the company a “market perform” rating in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $39.67.

Capital Bancorp Price Performance

Shares of NASDAQ:CBNK opened at $39.80 on Wednesday. The company has a market cap of $648.34 million, a price-to-earnings ratio of 11.71 and a beta of 0.52. The business has a 50 day moving average price of $36.84 and a 200 day moving average price of $33.90. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.12. Capital Bancorp has a twelve month low of $26.40 and a twelve month high of $40.26.

Capital Bancorp (NASDAQ:CBNK) last announced its quarterly earnings data on Monday, July 27th. The financial services provider reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.05. Capital Bancorp had a net margin of 17.47% and a return on equity of 13.14%. The business had revenue of $65.29 million for the quarter, compared to the consensus estimate of $66.54 million. Research analysts predict that Capital Bancorp will post 3.47 earnings per share for the current year.

Capital Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 26th. Stockholders of record on Monday, August 10th were paid a $0.14 dividend. The ex-dividend date was Monday, August 10th. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. This is an increase from Capital Bancorp’s previous quarterly dividend of $0.12. Capital Bancorp’s dividend payout ratio is currently 16.47%.

Institutional Trading of Capital Bancorp

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Capital Bancorp during the second quarter worth $27,625,000. Dimensional Fund Advisors LP boosted its stake in shares of Capital Bancorp by 5.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 355,466 shares of the financial services provider’s stock valued at $10,571,000 after purchasing an additional 17,264 shares in the last quarter. Ategra Capital Management LLC bought a new stake in shares of Capital Bancorp in the 2nd quarter worth about $8,122,000. Kennedy Capital Management LLC increased its position in shares of Capital Bancorp by 0.3% during the 4th quarter. Kennedy Capital Management LLC now owns 262,462 shares of the financial services provider’s stock worth $7,394,000 after purchasing an additional 750 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in Capital Bancorp by 104.1% during the 1st quarter. Sei Investments Co. now owns 167,222 shares of the financial services provider’s stock valued at $4,973,000 after purchasing an additional 85,293 shares during the last quarter. Institutional investors and hedge funds own 56.14% of the company’s stock.

Capital Bancorp News Summary

Here are the key news stories impacting Capital Bancorp this week:

• Positive Sentiment: Agreed to be acquired by Peoples Bancorp: Peoples will acquire Capital Bancorp for 1.11 shares of Peoples common stock per CBNK share. The transaction has been reported as worth approximately $728.1 million, or about $43.75 per Capital share, and Capital shareholders are expected to own roughly 32% of the combined company. The combination is intended to create a larger, more diversified banking franchise with expanded Mid-Atlantic operations and complementary nationwide businesses. Peoples Bancorp and Capital Bancorp merger announcement
• Positive Sentiment: Merger speculation drove heavy trading: Reports said CBNK rallied on the announcement as investors priced in the transaction’s implied value and potential takeover premium. Trading volume was substantially above the stock’s recent average, indicating strong investor interest. Capital Bancorp shares rise on merger deal
• Neutral Sentiment: Analysts are becoming more cautious: Hovde Group cut Capital Bancorp to Market Perform from Outperform while maintaining a $42 price target. Brean Capital also downgraded the stock to Neutral, suggesting limited upside near the proposed transaction value. Hovde Group downgrade
• Negative Sentiment: Deal-related legal reviews add uncertainty: Ademi, Halper Sadeh and Brodsky & Smith announced investigations into whether the consideration is fair, whether insiders received sufficient benefits, and whether the board adequately pursued shareholder value or competing offers. These reviews could create additional deal uncertainty, though they do not necessarily indicate wrongdoing. Ademi shareholder investigation
• Negative Sentiment: Estimate-revision trend is a near-term risk: Zacks noted that recent earnings-estimate revisions may not support continued momentum, potentially limiting upside after the merger-driven move. Zacks Capital Bancorp analysis

Capital Bancorp Company Profile

Capital Bancorp, Inc is a bank holding company headquartered in Rockville, Maryland. Through its principal subsidiary, Capital Bank, N.A., the company provides commercial and consumer banking services to individuals, businesses, nonprofit organizations, and government contractors.

Capital Bank offers deposit accounts, commercial and residential real estate lending, commercial and industrial loans, small business financing, treasury management, mortgage lending, and other banking services.