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NEW YORK (TheStreet) -- Bank of Commerce Holdings (BOCH) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF COMMERCE HOLDINGS (BOCH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for BANK OF COMMERCE HOLDINGS is currently very high, coming in at 77.45%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, BOCH's net profit margin of 13.02% is significantly lower than the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 29.4% when compared to the same quarter one year ago, falling from $1.80 million to $1.27 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, BANK OF COMMERCE HOLDINGS's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BOCH Ratings Report