Capital Bancorp, Inc. (NASDAQ:CBNK) Stock Has Average Target Price of $37.33

Shares of Capital Bancorp, Inc. (NASDAQ:CBNK) have been assigned a consensus rating of “Moderate Buy” from the six brokerages that are currently covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price target among brokers that have covered the stock in the last year is $37.33.

A number of analysts have commented on the company. Keefe, Bruyette & Woods lifted their target price on Capital Bancorp from $35.00 to $40.00 and gave the stock a “market perform” rating in a report on Monday, August 3rd. Raymond James Financial started coverage on Capital Bancorp in a report on Thursday, September 3rd. They set a “market perform” rating on the stock. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Capital Bancorp in a research report on Friday, September 25th.

Capital Bancorp Stock Up 10.3%

Shares of Capital Bancorp stock opened at $39.31 on Monday. The company has a 50-day simple moving average of $36.76 and a two-hundred day simple moving average of $33.82. The stock has a market capitalization of $640.36 million, a PE ratio of 11.56 and a beta of 0.51. Capital Bancorp has a 52-week low of $26.40 and a 52-week high of $40.26. 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 (NASDAQ:CBNK) last announced its quarterly earnings results on Monday, July 27th. The financial services provider reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05. The company had revenue of $65.29 million during the quarter, compared to the consensus estimate of $66.54 million. Capital Bancorp had a net margin of 17.47% and a return on equity of 13.14%. On average, analysts anticipate that Capital Bancorp will post 3.47 EPS for the current fiscal year.

Capital Bancorp Increases Dividend

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

More Capital Bancorp News

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

• Positive Sentiment: Peoples Bancorp will acquire Capital Bancorp in a transaction valued at approximately $728.1 million. Capital shareholders will receive 1.11 shares of Peoples common stock for each CBNK share, representing an implied value of approximately $43.75 per share. The deal gives CBNK investors a clear transaction-related valuation reference and supports the stock’s upward move. Peoples Bancorp and Capital Bancorp merger announcement
• Positive Sentiment: The companies said the combination will create a more diversified financial-services franchise, expand Peoples’ Mid-Atlantic presence, and add scale through complementary nationwide businesses. CBNK shareholders are expected to own approximately 32% of the combined company, providing continued exposure to the merged bank rather than receiving cash. Merger agreement details
• Neutral Sentiment: Capital Bancorp shareholder law firms, including Ademi LLP, Halper Sadeh LLC, and Brodsky & Smith, announced investigations into whether the consideration is fair and whether the board adequately protected investors. These announcements are often preliminary and do not indicate that the transaction will fail, but they could lead to additional disclosures, negotiations, or delays. Ademi shareholder investigation
• Negative Sentiment: Brean Capital downgraded CBNK to Neutral, potentially limiting additional buying interest after the merger-driven advance and signaling reduced standalone upside. Brean Capital downgrade

Institutional Trading of Capital Bancorp

A number of large investors have recently made changes to their positions in CBNK. Sequoia Financial Advisors LLC purchased a new position in shares of Capital Bancorp during the second quarter valued at approximately $324,000. Squarepoint Ops LLC boosted its holdings in Capital Bancorp by 31.9% in the second quarter. Squarepoint Ops LLC now owns 137,954 shares of the financial services provider’s stock worth $4,845,000 after purchasing an additional 33,402 shares during the last quarter. Susquehanna Fundamental Investments LLC bought a new stake in Capital Bancorp in the 2nd quarter worth approximately $310,000. Empowered Funds LLC bought a new stake in Capital Bancorp in the 2nd quarter worth approximately $3,664,000. Finally, Bank of America Corp DE bought a new stake in Capital Bancorp in the 2nd quarter worth approximately $705,000. 56.14% of the stock is currently owned by institutional investors.

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.