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The Financial Select Sector SPDR ETF (NYSEARCA:XLF) was trading as low as $5.88 in March 2009. The index is currently trading at $20.03 or 240.6% above the low made in March 2009.


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In this article, I will feature one bank that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

Banc of California (NYSE:BANC) operates as a bank holding company for Pacific Trust Bank and Beach Business Bank that provides retail banking services to individuals and small to mid-sized businesses. Banc of California bottomed at $4.44 in December 2009 and is currently trading at $14.47 or 225.9% above the low made in December 2009. This performance is in line with the performance of the Financial Select Sector SPDR ETF.


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Insider buying by insider (last 30 days)

  • Ronald Nicolas purchased 5,000 shares on August 14 and currently controls 38,397 shares or 0.2% of the company. Ronald Nicolas is Executive Vice President and Chief Financial Officer.
  • James Gray purchased 1,000 shares on August 9 and currently controls 7,000 shares or less than 0.1% of the company. James Gray serves as a director of the company.
  • Timothy Chrisman purchased 1,500 shares on August 9 and currently holds 30,983 shares or 0.2% of the company. Timothy Chrisman is the Chairman of the Board.

Insider buying by calendar month

Here is a table of Banc Of California's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
August 2013 7,500 0
June 2013 25,946 0
May 2013 0 0
April 2013 0 0
March 2013 47,989 0
February 2013 0 0
January 2013 0 0

There have been 81,435 shares purchased and there have been zero shares sold by the insiders this year.

Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Net income $4.4 million
Net income growth over Q1 580.2%
Tangible book value $12.28 per share

Competition

Banc Of California's competitors include Bank of America (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM) and U.S. Bancorp (NYSE:USB). Here is a table comparing these companies.

Company BANC BAC JPM USB
Market Cap: 176.70M 153.84B 201.56B 67.80B
Employees: 572 257,000 254,063 66,000
Qtrly Rev Growth (yoy): 4.21 0.07 0.15 0.02
Revenue: 125.46M 78.11B 94.04B 17.62B
Operating Margin: 0.07 0.17 0.37 0.46
Net Income: 10.72M 5.01B 22.90B 5.52B
EPS: 0.91 0.46 5.98 2.95
P/E: 16.09 31.33 8.91 12.46
PEG (5 yr expected): 0.61 0.86 1.55 1.45
P/S: 1.41 1.97 2.14 3.85

Banc Of California has the lowest P/S ratio among these four companies. Bank of America has seen three insider sell transactions and two insider buy transactions this year. JPMorgan and U.S. Bancorp have both seen intensive insider selling in July.

Conclusion

There have been three different insiders buying Banc Of California and there have not been any insiders selling Banc Of California during the past 30 days. Two out of these three insiders increased their holdings by more than 10%. Banc Of California has an insider ownership of 12.64%. There are six analyst buy ratings, one neutral rating and zero sell ratings with an average target price of $16.79. The stock is trading at a P/E ratio of 16.09 and a forward P/E ratio of 10.64. Banc Of California has a tangible book value of $12.28 per share and the stock has a dividend yield of 3.29%. I believe the stock could be a good pick at the tangible book value of $12.28 per share.

Source: Insiders Are Buying Banc Of California