Bancorp rises 2.2% with rising open interest, institutional shareholder Kennedy Capital Management, Inc. buys 14 May 2019

NEWS BITES - NORTH AMERICA

The Bancorp, Inc. (NASDAQ:TBBK), the NASDAQ's 112th largest Bank by market cap, has lifted 21.0c (2.2%) from its previous trading session to close at $US9.83 on Tuesday. Compared with the NASDAQ-100 Index which rose 77.8 points (1.1%) in the day, the relative price increase was 1.1%. The volume was 0.5 times the average daily trading volume of 258,337 shares. Bancorp's stock's open interest lifted 2.6% from 116 to 119. Combined with the price increase, this suggests a strong stock price. There were 140,300 shares worth $US1.4 million traded today. Its MCap is $US554.9 million.

TODAY'S NEWS

INSTITUTIONAL BUYING

Bancorp (NASDAQ:TBBK) institutional shareholder Kennedy Capital Management, Inc. (CIK:0000884589) bought 213,147 shares in the quarter ended March 31, 2019 worth $US1.7 million at an estimated Volume Weighted Average Price (VWAP) of USD8.6. At the end of the quarter Kennedy Capital Management, Inc. held 532,693 shares worth $US4.6 million.

INSTITUTIONAL SELLING

Bancorp (NASDAQ:TBBK) institutional shareholder Mackay Shields LLC (CIK:0000061227) sold 46,600 shares in the quarter ended March 31, 2019 worth $US376,528 at an estimated Volume Weighted Average Price (VWAP) of USD8.6. At the end of the quarter Mackay Shields LLC held 168,751 shares worth $US1.5 million. The net decrease in holdings over the last year was 234,753 shares (58% of the shares held a year ago).

Highlights in today's Report:

SECTION 1 TODAY'S BULLISH SIGNALS

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 PRICE VOLUME DYNAMICS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US9.83):

SECTION 4 THE PAST WEEK

SECTION 5 BULLISH PARAMETERS

SECTION 6 BEARISH PARAMETERS

SECTION 7 REPORTED BUYING AND SELLING

SECTION 8 SUMMARY FINANCIALS

SECTION 9 CORPORATE PROFILE

SECTION 1 BANCORP BULLISH SIGNALS

1.1 Undervaluation [compared with sector average]:

+ Price/Earnings of 6.3 [13.1]. The P/E of 6.3 plus annual inflation in the United States of 1.9% adds up to 8.2, well within the value benchmark Rule of 19.

+ The reciprocal of P/E or Earnings yield of 16.0% is 6.6 times the 10-year bond yield of 2.41%.

+ Price to Book of 1.4 [1.7]. We estimate Bancorp stock is trading at a current year Price to Book of 1.2 and a forward year Price to Book of 1.

+ The P/E of 6.3 multiplied by the P/NTA of 1.4 is 8.6. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 4% of stock by value of Q Ratio.

1.2 Undervaluation Indicators and rank of Bancorp in the NASDAQ market:

DescriptionValueRank In Market
Price/Earnings6.3In Top 7%
P/E * P/NTA8.64In Top Quartile

1.3 Rising open interest with rising price:

+ Open Interest Trend

Same day trend: The price lifted 2.2% from $US9.62 to $US9.83; Open interest has lifted 2.6% from 116 to 119. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.

DurationOpen Interest change %Price change %Interpretation
1-day2.62.2Strong Market

1.4 Short Selling:

+ The current short volume is 0.8 times its own historical average of 0.1%.

1.5 Uptrend:

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 9.9 minus the 26-day EMA of 9.55 is positive 0.35 suggesting a bullish signal.

+ The stock's relative price strength percentile is rising at 42 for 6 months, 81 for 3 months and 94 for 1 month.

1.6 High Price Performance Indicator and rank of Bancorp in the NASDAQ market:

DescriptionTBBK ValueRank In Market
Price/MAP501.1In Top Quartile

SECTION 2 BANCORP BEARISH SIGNALS

2.1 Overvaluation Indicators and rank of Bancorp in the NASDAQ market:

DescriptionValueRank In Market
EV/EBITDA4.0In Bottom 3%

2.2 Increasing Put Call Ratio:

+ Put Call Contracts

The Put/Call ratio has jumped from 0.137 to 0.167 suggesting a downtrend.

Put ContractsCall ContractsPut/Call ratio
Today171020.167
Previous day141020.137

2.3 Downtrend:

+ The Bancorp, Inc. is placed 1885/2479 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 24.

+ In the past week, volume was 0.5 times average and the shares were down 5.4%. Tuesday's close price is at a 1.0% discount to its 5-day Volume Weighted Average Price (VWAP) of $US9.93.

SECTION 3 BANCORP PRICE VOLUME DYNAMICS

Volatility:

+ Bancorp is at a discount of 18.1% to its 12-month high of $US12.0 on May 18, 2018. It is also at a premium of 28.7% to the 12-month low of $US7.64 on December 26.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US9.83):

SECTION 4 THE PAST WEEK

4.1 Snapshot: Bancorp stock was down 56.0c or 5.4% in the past week. Volume in the week was 0.5 times average trading of 1.3 million shares. It underperformed the NASDAQ-100 index in 3 out of 5 days.

DayBancorpClose price [USD]Price change %Relative change %Comment
MondayFalls 4.5% in weak trading with rising open interest9.62-4.5-1.0Steepest Fall
FridayDecreases10.07-0.7-0.7
ThursdayIncreases on rising relative strength10.140.71.2Top Rise
WednesdayDrops 3.1% on high volatility10.07-3.1-2.8
TuesdayFalls 4.4% from 14-day high10.39-0.71.3

SECTION 5 BANCORP BULLISH PARAMETERS

5.1 Performance:

+ Return on Equity 21.5% [9.9%].

+ Economic Value Added defined by Net Operating Profit After Tax of $US124.8 million less Cost of Capital of $US45.8 million was $US79 million. The multiple EVA/Cost of Capital was exemplary at 1.7 times.

+ Return on Assets 2% [1.2%].

+ Return on Capital Employed 30.1% [2.2%].

5.2 Low Debt Indicators:

+ The debt to equity ratio of 13.6% is under a safe benchmark figure of 50%. Moreover, it has improved in the past two years.

5.3 High Performance Indicators and rank of Bancorp in the NASDAQ market:

DescriptionValueRank In Market
Return on Equity [ROE] %21.5In Top Quartile

5.4 Present value of USD1,000 invested ten years Ago

+ The present value of USD1,000 (PV1000) invested ten years ago in Bancorp is $US1,762, for a capital gain of $US762.

+ 10 years Multiplier in USD = 1.762x

+ Annualized Total Shareholder Returns (TSR) in USD = 5.8%

5.5 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 93.6% (or a turnover period of 1 year 26 days). The average length of ownership of the stock is 2.0 times the average holding period of 6 months for stocks in the NASDAQ-100 Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 6 BANCORP BEARISH PARAMETERS

6.1 High Debt Indicators:

+ Total Liabilities/EBITDA of 26.4 compares unfavourably with the Joseph Piotroski benchmark of 5.

6.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged -0.7%. The Moving Annual Return has been positive in 2 out of 5 years.

TBBKClose (USD)Annual Return %
May 149.83(10.2)
1 Yr ago10.9567.2
2 Yrs ago6.5522.2
3 Yrs ago5.36(45.9)
4 Yrs ago9.91(36.9)

Close 5 years ago $US15.71

6.3 Declining ADVT past five years

Avg. Daily Volume Traded 12 months ended May 14, thousand shares

YearADVT
2019258.3
2018317.5
2017241.2
2016171.5
2015259.6

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 0.5% to 258,337 shares.

6.4 Declining VWAP

Past five years, 12 months ended May 14 (USD)

YearHigh PriceVWAPLow Price
201912.09.777.64
201811.639.096.02
20178.26.094.41
201610.627.443.88
201516.6410.097.81

In the past five years Volume Weighted Average Price (VWAP) has decreased by 3.2% to $US9.77. Based on a dynamic start date of five years ago, there have been declines in VWAP in 3 out of 5 years.

6.5 Declining Average Daily Turnover

Past five years, 12 months ended May 14 (USD million)

YearAverage Daily Turnover
20191.8
20182.9
20171.5
20161.3
20152.6

In the past five years, average daily share turnover has decreased 29.9% to $US1.8 million. This suggests decreased liquidity.

6.6 Decrease in Institutional Ownership

Quarter-endSeptember 30, 2018December 31, 2018
Holdings (%)80.079.6

As at December 31, 2018 Institutions held 79.6% of total shares on issue; a decrease from 80.0% as at September 30, 2018.

6.7 Decrease in Insider Buying

In the past 5 years a total of 1,492,588 Bancorp shares worth $US8.7 million were bought by insiders. Based on a dynamic start date of 5 years ago, insider buying has averaged 298,518 shares per year. In the past year, insiders bought 1,000 shares, a decrease of 99.8% from the previous year.

SECTION 7 BANCORP REPORTED BUYING AND SELLING

7.1 Institutional Buying and Selling Quarter Ended December 31

Total reported Institutional buying = 2,551,004 shares

Total reported Institutional selling = 2,796,187 shares

Net reported institutional selling = 245,183 shares

7.2 Reported Holdings of Institutions as at Dec 31, 2018

Total = 44,905,188 shares

Market Value = $US357.4 million

Institutions hold 79.6% of Issued Shares.

SECTION 8 BANCORP SUMMARY FINANCIALS

Financials Summary

Year endedDec 2018Dec 2017Dec 2016
Sales (USD)--102.2M
Pretax (USD M)119.840.4(69.5)
Net (USD M)87.517.3(96.5)
EPS (USD)1.570.39(2.17)

+ Net profit was up 404.9% from US$17.3 million in 2017 to US$87.5 million in 2018.

+ Earnings Per Share (EPS) was up 302.6% from 39.0c to $US1.57.

SECTION 9 CORPORATE PROFILE

9.1 Activities

The Bancorp, Inc. is a financial holding company with a wholly owned subsidiary, The Bancorp Bank (the Bank). Through the Bank, the Company provides a range of commercial and retail and related banking services, which include private label banking, healthcare accounts, prepaid and debit cards and merchant card processing to both regional and national markets. The Company focuses on providing its banking services directly to retail and commercial customers in the Philadelphia-Wilmington metropolitan area, which consists of the 12 counties surrounding Philadelphia, Pennsylvania and Wilmington, Delaware including Philadelphia, Delaware, Chester, Montgomery, Bucks and Lehigh Counties in Pennsylvania, New Castle County in Delaware and Mercer, Burlington, Camden, Ocean and Cape May Counties in New Jersey.

9.2 Top Management

The chairman is Daniel Gideon Cohen, the chief executive officer is Damian Kozlowski and the chief financial officer is Paul Frenkiel.

9.3 Issued Capital and MCap

Based on 56,446,000 issued shares the market capitalisation is $US554.9 million.

COMPANY IDENTIFIERS

Contact: +1 302 385-5000

Physical Address: 409 Silverside Road, Wilmington, DE,19809

State/Province/Country: DE, United States

Country of Incorporation: United States

Industry [NAICS]: 522110

Exchange: NASDAQ

Business Sector: Banking & Investment Services

Industry Group: Banking Services

Industry: Banks

Economic Sector: Financials

ISIN: US05969A1051

O:TBBK; TBBK.O

PermID: 4295913876

RIC: TBBK.O

CIK: 1295401

CUSIP: 05969A105

Bancorp Inc, Bancorp Inc (The), The Bancorp Inc

Source: www.BuySellSignals.com