Capital Bancorp (NASDAQ:CBNK) Rating Lowered to “Hold” at Brean Capital

Capital Bancorp (NASDAQ:CBNK) was downgraded by equities research analysts at Brean Capital from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Wednesday, Zacks reports.

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

Capital Bancorp Trading Up 1.2%

Shares of CBNK opened at $39.80 on Wednesday. The stock has a fifty day moving average price of $36.84 and a two-hundred day moving average price of $33.90. 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 company has a debt-to-equity ratio of 0.12, a quick ratio of 1.03 and a current ratio of 1.03. Capital Bancorp has a 52-week low of $26.40 and a 52-week 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 EPS for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. Capital Bancorp had a return on equity of 13.14% and a net margin of 17.47%.The firm had revenue of $65.29 million for the quarter, compared to analyst estimates of $66.54 million. Analysts predict that Capital Bancorp will post 3.47 EPS for the current fiscal year.

Institutional Trading of Capital Bancorp

Large investors have recently added to or reduced their stakes in the company. Gator Capital Management LLC boosted its holdings in Capital Bancorp by 0.7% in the 4th quarter. Gator Capital Management LLC now owns 90,170 shares of the financial services provider’s stock valued at $2,540,000 after purchasing an additional 655 shares during the period. Kennedy Capital Management LLC grew its position in Capital Bancorp by 0.3% during the fourth quarter. Kennedy Capital Management LLC now owns 262,462 shares of the financial services provider’s stock worth $7,394,000 after buying an additional 750 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of Capital Bancorp during the 2nd quarter worth $37,000. Bank of America Corp DE increased its position in shares of Capital Bancorp by 13.0% in the first quarter. Bank of America Corp DE now owns 22,334 shares of the financial services provider’s stock worth $664,000 after purchasing an additional 2,570 shares during the period. Finally, GSA Capital Partners LLP acquired a new stake in Capital Bancorp during the second quarter worth about $297,000. Institutional investors and hedge funds own 56.14% of the company’s stock.

Capital Bancorp News Roundup

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.