BayCom Downgraded to 'Market Perform' by Hovde Group

BayCom (NASDAQ:BCML) has experienced a shift in its investment rating as analysts at Hovde Group downgraded the stock from an "outperform" rating to a "market perform" rating. This change was announced in a research note released on Wednesday, indicating a revised price target for BayCom set at $31.00. This target price suggests that there is a potential upside of approximately 6.57% based on the company's current trading level.

Current Performance of BayCom Stock

On Wednesday, the shares of BayCom opened at $29.09. The company has a market capitalization of $323.48 million and maintains a price-to-earnings ratio of 13.85. Furthermore, BayCom's beta is noted at 0.81, suggesting that the stock is less volatile compared to the broader market. The stock has a 50-day moving average of $27.47 alongside a 200-day moving average of $25.37. Financial metrics show that BayCom has both a quick ratio and a current ratio of 1.04, and its debt-to-equity ratio stands at 0.22. Over the past year, BayCom has seen its share price fluctuate between a low of $18.54 and a high of $30.13.

In terms of financial earnings, the company recently reported its quarterly results on January 23, showing an earnings per share (EPS) of $0.55 for the quarter, surpassing analysts' expectations which estimated an EPS of $0.51. The return on equity for BayCom was noted at 7.45%, while its net margin stood at 17.10%. Analysts forecast that BayCom will achieve an EPS of 2.48 for the current fiscal year.

Institutional Investment Trends

Recent weeks have also seen institutional investors and hedge funds adjusting their holdings in BayCom. For instance, PNC Financial Services Group Inc. raised its stake in the company by 46.6% in the fourth quarter, now holding 1,347 shares valued at $36,000 after acquiring an additional 428 shares. Meanwhile, SG Americas Securities LLC entered the picture by purchasing a new stake valued at $120,000 in the same period. Additionally, Assenagon Asset Management S.A. took a new position with an investment of $422,000. JPMorgan Chase & Co. increased its stake by 129.9%, now owning 22,330 shares after purchasing 12,617 more shares, bringing its total investment to about $530,000. In the third quarter, Captrust Financial Advisors also raised its holding by 4.4%, now totaling 23,361 shares valued at $554,000. Overall, institutional investors currently control 66.16% of BayCom's shares.

Overview of BayCom

BayCom Corp serves as the bank holding company for United Business Bank, which offers a variety of financial services primarily aimed at small to mid-sized businesses, service professionals, and individual clients. The company provides services such as demand deposits, savings accounts, money market accounts, and time deposits. Additionally, it offers commercial and multifamily real estate loans—including both owner-occupied and investment properties—along with commercial and industrial loans, equipment financing, working capital lines of credit, Small Business Administration (SBA) loans, construction loans, agriculture-related loans, and various consumer loans that include secured and unsecured personal lines of credit, installment loans, and overdraft protection.

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