Capital Bancorp (NASDAQ:CBNK) Shares Gap Up Following Better-Than-Expected Earnings

Capital Bancorp, Inc. (NASDAQ:CBNK)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $28.28, but opened at $29.50. Capital Bancorp shares last traded at $30.29, with a volume of 13,372 shares trading hands.

The financial services provider reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.67 by $0.21. Capital Bancorp had a net margin of 12.66% and a return on equity of 14.89%. The company had revenue of $58.60 million during the quarter, compared to analysts’ expectations of $57.54 million.

Capital Bancorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 28th. Investors of record on Monday, May 12th will be paid a $0.10 dividend. The ex-dividend date is Monday, May 12th. This represents a $0.40 dividend on an annualized basis and a yield of 1.32%. Capital Bancorp’s payout ratio is currently 18.78%.

Analyst Ratings Changes

CBNK has been the subject of several analyst reports. Keefe, Bruyette & Woods lifted their price target on shares of Capital Bancorp from $32.00 to $35.00 and gave the company a “market perform” rating in a report on Friday, February 7th. Hovde Group reduced their target price on Capital Bancorp from $36.00 to $34.00 and set an “outperform” rating on the stock in a report on Monday, March 17th.

Insiders Place Their Bets

In related news, Director Randall James Levitt sold 14,500 shares of the firm’s stock in a transaction on Friday, February 7th. The shares were sold at an average price of $32.30, for a total value of $468,350.00. Following the completion of the transaction, the director now owns 100,000 shares of the company’s stock, valued at approximately $3,230,000. This trade represents a 12.66 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 32.50% of the company’s stock.

Hedge Funds Weigh In On Capital Bancorp

Several hedge funds have recently modified their holdings of the stock. Picton Mahoney Asset Management boosted its position in Capital Bancorp by 123.0% during the fourth quarter. Picton Mahoney Asset Management now owns 1,135 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 626 shares during the last quarter. Federated Hermes Inc. boosted its holdings in shares of Capital Bancorp by 194.7% in the 4th quarter. Federated Hermes Inc. now owns 3,528 shares of the financial services provider’s stock valued at $101,000 after buying an additional 2,331 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of Capital Bancorp in the fourth quarter valued at $109,000. Wells Fargo & Company MN increased its holdings in Capital Bancorp by 27.9% during the fourth quarter. Wells Fargo & Company MN now owns 5,400 shares of the financial services provider’s stock worth $154,000 after buying an additional 1,177 shares during the last quarter. Finally, Praetorian Wealth Management Inc. bought a new stake in Capital Bancorp during the fourth quarter worth $205,000. Institutional investors own 56.14% of the company’s stock.

Capital Bancorp Trading Up 7.0 %

The business’s 50 day simple moving average is $28.29 and its 200 day simple moving average is $28.54. The stock has a market cap of $504.21 million, a price-to-earnings ratio of 14.21 and a beta of 0.52. The company has a quick ratio of 1.02, a current ratio of 1.03 and a debt-to-equity ratio of 0.23.

About Capital Bancorp

Capital Bancorp, Inc operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments.