Corporate executives and directors tend to have the most up-to-date information on their companies. If these insiders are buying stock, it’s often a sign that the business is performing well and that the share price is set to move higher.
In this report, we are going to highlight some interesting insider buying at Banc of California Inc (BANC:US). Banc of California Inc is the holding company of Banc of California – a full-service business bank that offers commercial and business banking and personal banking services in a number of cities across California. The company is listed on the New York Stock Exchange and currently has a market capitalization of $910 million.
Banc of California: Insider Buying
Our records show that in late April, two insiders at Banc of California purchased stock. On 27 April, President and CEO Jared Wolff bought 5,600 shares at a price of $17.75, spending $99,413 on the stock. Then, on 29 April, Director James Barker bought 27,200 shares at a price of $18.42, spending $500,942 on the stock.
This insider trading activity is worth highlighting for a couple of reasons. Firstly, these are substantial purchases. Our data shows that this buying activity represents the largest amount of insider buying at Banc of California within a quarter for several years.
Secondly, both of these insiders have significant industry experience. Mr. Wolff is a veteran California banking executive with deep expertise in finance, law, and risk management. He joined the company as President and Chief Executive Officer in March 2019. Previously, he was a member of the Executive Committee at City National Bank and the President of PacWest Bancorp. Meanwhile, Mr. Barker has over 30 years of experience in corporate strategy, private equity, and management of large corporate enterprises. Given this industry experience, it’s fair to assume that these insiders know what they are doing.
Good Q1 Results
Banc of California recently posted a solid set of first-quarter results. For the quarter, revenue came in at $62.30 million, up 20.1% year on year. Meanwhile, net income came in at $14.4 million versus a loss of $6.6 million in Q1 2020. Adjusted earnings were 25 cents per share, slightly above the consensus estimate of 24 cents per share.
Looking ahead, the company said that its growing loan pipeline should support continued loan and earning asset growth through the year, assuming economic trends continue. It also said that its acquisition of Pacific Mercantile Bancorp should close in the third quarter of 2021 and that it is excited about the opportunities to leverage the collective strengths of the combined company.
In light of these results and the outlook, we see insider buying here as bullish.