California BanCorp (NASDAQ:CALB) has recently seen significant stock transactions by SEVP and Chief Lending Officer, Scott Alexander Myers. According to the latest filings, Myers sold a total of 9,831 shares of the company's common stock, with the total value of these transactions amounting to approximately $197,424.
The sales occurred over several transactions, with prices ranging from $18.66 to $24.68 per share. The first sale was on August 3, 2023, when Myers sold 3,254 shares at an average price of $18.66. Subsequent sales saw prices increase, with the highest being on February 1, 2024, where 2,564 shares were sold at $24.68 each.
Myers' transactions over the period reduced his holdings in the company significantly. For instance, after the sale on March 1, 2024, Myers held 10,315 shares, which further decreased to 8,290 shares following a series of transactions, the last of which occurred on June 12, 2024, with 1,298 shares sold at $21.90 each.
Additionally, the filings included a note explaining that the total amount of shares owned following the transactions corrects an administrative error reported in previous filings, clarifying that no reportable transaction was omitted from earlier reports.
In a notable non-sale transaction, Myers disposed of 8,290 shares on July 31, 2024, as a result of a merger agreement between California BanCorp and Southern California Bancorp (BCAL). According to the agreement, each share of California BanCorp common stock was converted into the right to receive 1.590 shares of BCAL common stock, with Myers no longer holding any direct or indirect shares in California BanCorp post-merger.
Investors and market watchers often pay close attention to insider transactions such as these, as they can provide insights into an executive's perspective on the company's current valuation and future prospects.
In other recent news, California BanCorp has been the subject of several analyst adjustments following its first-quarter financial performance. Keefe, Bruyette & Woods reduced their price target for California BanCorp to $23, while maintaining an Outperform rating. The firm revised their earnings estimates for the bank for 2024 and 2025 to $2.12 and $2.05 per share, respectively, citing a projected lower net interest income due to a smaller balance sheet.
Piper Sandler also adjusted its price target for the bank, reducing it to $26 and maintaining an Overweight rating. The firm revised its estimated earnings per share for California BanCorp for 2024 and 2025 to $2.15 and $2.00, respectively.
DA Davidson lowered its price target for California BanCorp shares from $36 to $31, while retaining a Buy rating. The firm cited the bank's focus on growing its core deposits and fostering new commercial relationships as reasons for the adjustment.
These recent developments come as California BanCorp prepares for its merger with BCAL, which is expected to be finalized in the third quarter of 2024. All three firms noted the upcoming merger in their analysis, suggesting it could influence the bank's future financial performance.
InvestingPro Insights
Recent market activity and analyses provide a nuanced view of California BanCorp's (NASDAQ:CALB) financial health and stock performance. A key piece of data for investors is the company's current market capitalization, which stands at $213.66 million. This valuation comes in the context of a Price/Earnings (P/E) ratio of 24.62, which has adjusted slightly to 21.5 when considering the last twelve months as of Q2 2024. Such metrics are crucial for evaluating whether the stock is priced appropriately relative to its earnings.
Investors should note that California BanCorp has experienced a significant decline in revenue growth, with a decrease of 21.33% over the last twelve months as of Q2 2024. This downward trend is further emphasized by a quarterly revenue decline of 75.0% in Q2 2024. Despite this, the company has shown a strong return over the last month, with a 15.49% increase in stock price, indicating a potential turnaround or positive market sentiment.
Two InvestingPro Tips that might be particularly relevant for investors considering California BanCorp's stock are the company's weak gross profit margins and the expectation that net income will drop this year. These insights could be indicative of underlying challenges in the company's operations. However, it's worth noting that analysts predict the company will be profitable this year, and the stock has been profitable over the last twelve months. For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further clarity on the company's financial state and stock potential.
It is also important to mention that California BanCorp does not pay dividends, which might influence the investment strategy of those seeking regular income from their stock holdings. For a more comprehensive set of tips and data points, investors can explore the full range of insights on InvestingPro, which currently lists a total of 7 additional tips for California BanCorp.
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