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NEW YORK (TheStreet) -- Shares of Banc of California (BANC) - Get Banc of California Incorporated Report were surging 18.12% to $13.30 on heavy trading volume late Wednesday morning after reporting better-than-expected 2016 third-quarter results and increasing its full-year profit outlook.

The bank released its financial results a day earlier than scheduled after the stock plunged 29% on Tuesday following a report by an anonymous short seller. 

For the most recent period, Banc of California reported earnings of 59 cents per diluted share, beating analysts' estimates of 42 cents per share. 

Revenue climbed to $161.6 million from $106.3 million a year ago and topped analysts' projections of $143.5 million.

For the full year, Banc of California now expects to report earnings of at least $1.85 per share, up from $1.60 per share.

A short seller yesterday alleged in a Seeking Alpha post that the company's leadership was affiliated with Jason Galanis, who pleaded guilty in July to conspiracy and securities fraud. 

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Seeking Alpha has since noted that a government investigation "showed the shady Jason Galanis fabricated his connections to bank CEO Steven Sugarman's COR Capital."

About 9.28 million shares of Banc of California have been traded so far today, well above the company's average trading volume of roughly 1.48 million shares a day. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Banc of California's strengths such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: BANC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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