BANX
ArrowMark Financial Corp.StoneCastle Financial Corp. is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across the banking sector. It invests in dividend paying growth and value stocks of companies. For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings. The fund employs fundamental analysis with b
2-Year Price History
Quarterly Financials & Projections
| Period | Rev | EBITDA | OpIn | NI | OCF | FCF | CapEx | Cash | Debt | Shares | ROIC | IntCov | EV/EBITDA | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Est | 2027-Q4 | 8.8 | 6.3 | -- | 4.8 | -- | 4.4 | -0.0 | 17.7 | -- | -- | -- | -- | -- |
| Est | 2027-Q2 | 4.6 | 3.4 | -- | 2.5 | -- | 2.1 | -0.0 | 13.3 | -- | -- | -- | -- | -- |
| Est | 2026-Q4 | 9.8 | 7.4 | -- | 5.7 | -- | 5.4 | -0.0 | 11.2 | -- | -- | -- | -- | -- |
| Est | 2026-Q2 | 5.2 | 4.1 | -- | 3.3 | -- | 2.6 | -0.0 | 5.8 | -- | -- | -- | -- | -- |
| Act | 2025-Q4 | 11.5 | 9.3 | 9.3 | 7.6 | 8.3 | 8.3 | -0.0 | 3.2 | 25.2 | 7.8 | 20.5% | 5.5x | 8.2x |
| Act | 2025-Q2 | 5.9 | 12.6 | 12.6 | 10.3 | 2.6 | 2.6 | -0.0 | 17.9 | 64.5 | 7.1 | 21.3% | -- | 8.2x |
| Act | 2024-Q4 | 14.7 | 11.5 | 11.6 | 9.3 | 12.1 | 6.9 | -0.0 | 2.7 | 46.8 | 7.1 | 22.6% | 5.8x | 8.1x |
| Act | 2024-Q2 | 14.8 | 11.9 | 11.9 | 7.5 | 12.1 | 6.9 | -0.0 | 1.8 | 58.8 | 7.1 | 21.9% | 6.0x | 8.0x |
| Act | 2023-Q4 | 15.2 | 12.0 | 12.1 | 11.2 | 15.1 | 15.1 | -0.0 | 0.4 | 45.0 | 7.1 | 24.8% | 3.4x | 7.6x |
| Act | 2023-Q2 | 13.5 | 10.5 | 10.5 | 9.1 | 6.4 | 6.4 | -0.0 | 0.1 | 0.0 | 7.1 | 42.5% | -- | 6.6x |
| Act | 2022-Q4 | 11.8 | 8.8 | 8.8 | 5.2 | 7.9 | 7.9 | -0.0 | 0.4 | 55.6 | 7.1 | 16.7% | -- | 11.3x |
| Act | 2022-Q2 | 9.7 | 6.9 | 6.9 | 0.2 | 7.9 | 7.9 | -0.0 | 0.1 | 0.0 | 7.1 | 28.6% | -- | -- |
Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.
| Year | Price | Rev Gr | EBITDA % | EBITDA | EV/EBITDA | EV/FCF | P/E | P/S |
|---|---|---|---|---|---|---|---|---|
| TTM | 19.80 | -6.7% | 96.6% | 45 | 0.0× | 0.0× | 0.0× | 0.0× |
EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.
AI Analysis
LLM Evaluations
BANX is a shrinking income story disguised by a high trailing yield. With ~86% of the portfolio in floating-rate RCR securities, the fund's net investment income is directly tied to short-term rates, which are declining. The recent dilutive rights offering at a 10% NAV discount, accelerating NAV erosion (down 6% in 4 months), near-doubling of short interest, and the cosmetic shift to monthly distributions all point to a fund under pressure. The 11% trailing yield is likely unsustainable in a 2026-2027 rate-cutting cycle and will need to be reduced, which could trigger retail selling. At $19.50/share vs. an NAV already down to ~$21.18 and falling, the discount to NAV is modest protection given the trajectory. Competition from larger, better-capitalized players like Eagle Point entering the RCR space further threatens the franchise. This is a below-average risk/reward where the biggest historical tailwind (high rates) is reversing.
Valuation & Metrics
Market Stats
TTM Financial Snapshot
DCF Fair Value Estimate
Forward Outlook & Risk
Short Interest
Options
| Strike | Call Bid/Ask | Call OI | Put Bid/Ask | Put OI |
|---|---|---|---|---|
| $15.00 | $2.20/$7.00 | 0 | --/$2.70 | 0 |
| $17.10 | $0.10/$4.90 | 0 | --/$2.85 | 3 |
| $17.50 | $0.10/$4.90 | 5 | --/$2.90 | 3 |
| $19.60 | --/$3.40 | 0 | --/$1.00 | 3 |
| $20.00 | $0.25/$3.00 | 6 | --/$3.80 | 0 |
| $22.10 | --/$4.10 | 79 | $0.50/$4.90 | 0 |
| $22.50 | --/$4.10 | 0 | $0.65/$5.50 | 0 |
| $24.60 | --/$4.00 | 0 | $2.70/$7.50 | 1 |
Forward Projections & Estimates
Institutional Ownership
Headline & net flow
In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 5.5% of float, sold 0.6%.
Ownership composition
Top holders
| Fund | $ value | Cost basis | Δ QoQ | Δ YoY | α life | Fund AUM |
|---|---|---|---|---|---|---|
| ArrowMark Colorado Holdings LLC | $16.9M | $21.17 | +$1.5M | +$13.1M | -4.3% | $3.74B |
| RAYMOND JAMES FINANCIAL INC | $3.7M | $18.73 | +$752K | +$174K | -0.0% | $322.69B |
| STIFEL FINANCIAL CORP | $2.6M | $13.59 | −$321K | −$768K | -0.3% | $108.17B |
| ADVISOR GROUP HOLDINGS, INC. | $2.2M | $17.35 | +$1.3M | +$1.8M | -0.3% | $67.63B |
| Noble Wealth Management PBC | $2.0M | $19.57 | +$488K | +$1.1M | +1.4% | $195M |
| Almitas Capital LLC | $1.4M | $19.06 | +$1.4M | +$1.4M | +2.7% | $442M |
| Closed-End Fund Advisors, Inc. | $1.3M | $21.55 | +$8K | +$1.3M | -3.0% | $98.3M |
| Hudson Bay Capital Management LP | $1.1M | $19.06 | +$1.1M | +$1.1M | +1.9% | $15.12B |
| Everstar Asset Management, LLC | $902K | $18.88 | +$22K | +$446K | +0.7% | $188M |
| MORGAN STANLEY | $643K | $17.68 | +$33K | +$432K | -0.3% | $1.65T |
| CSS LLC/IL | $603K | $19.06 | +$603K | +$603K | +2.3% | $794M |
| CALDWELL SUTTER CAPITAL, INC. | $490K | $18.54 | +$476K | +$477K | -1.4% | $246M |
| Capital Investment Advisors, LLC | $462K | $12.88 | −$33K | −$81K | +0.0% | $6.82B |
| OPPENHEIMER & CO INC | $452K | $17.59 | +$22K | −$21K | -0.1% | $8.20B |
| Falcon Wealth Planning | $308K | $16.20 | −$26K | −$51K | +0.2% | $1.47B |
| Catalina Capital Group, LLC | $300K | $18.40 | +$0 | +$103K | -0.5% | $163M |
| Rockefeller Capital Management L.P. | $281K | $20.84 | +$0 | +$281K | -0.1% | $56.28B |
| Accurate Wealth Management, LLC | $259K | $20.85 | −$23K | +$259K | -0.3% | $826M |
| Private Advisor Group, LLC | $234K | $20.49 | +$24K | +$234K | -0.1% | $21.04B |
| MAI Capital Management | $100K | $18.64 | +$0 | +$0 | -0.1% | $17.61B |
Trading behavior
▸ Compare to holder-profile behavior (across all their stocks)
Biggest decreases this quarter
New buyers this quarter
Top-5 holders · 75.1%
Top Holders Over Time
5-year share-count history (top 10 holders by peak, incl. exited) + price
Analyst Coverage
| Quarter | Revenue | EBITDA | Net Inc | EPS | EPS Range | # Analysts |
|---|---|---|---|---|---|---|
| 2024 Q4 | 4M | 4M | 3M | $0.43 | $0.43 – $0.43 | 1 |
| 2025 Q1 | 4M | 4M | 3M | $0.43 | $0.43 – $0.43 | 1 |
| 2025 Q2 | 4M | 4M | 3M | $0.43 | $0.43 – $0.43 | 1 |
| 2025 Q3 | 4M | 4M | 3M | $0.43 | $0.43 – $0.43 | 1 |
| 2025 Q4 | 4M | 4M | 3M | $0.42 | $0.42 – $0.42 | 1 |
| 2026 Q1 | 4M | 4M | 3M | $0.42 | $0.42 – $0.42 | 1 |
| 2026 Q2 | 5M | 4M | 3M | $0.42 | $0.42 – $0.42 | 1 |
| 2026 Q3 | 5M | 4M | 4M | $0.45 | $0.45 – $0.45 | 1 |
| 2026 Q4 | 5M | 4M | 4M | $0.46 | $0.46 – $0.46 | 1 |
| 2027 Q1 | 5M | 4M | 4M | $0.46 | $0.46 – $0.46 | 1 |
Corporate
Insider Trading (last 12mo)
| Date | Side | Insider | Title | Shares | Price | Dollars | Owned $ |
|---|---|---|---|---|---|---|---|
| 2026-03-27 | BUY | Marano Thompson Melissa | director | 1,500 | $18.77 | $28K | $28K |
Order Flow (FINRA, ~3w lag)
Counter-Thesis
Counter-Thesis & Recent News
In February 2026, ArrowMark Financial completed a transferable rights offering that raised approximately $37 million, but at a dilutive subscription price of $19.79, which was set at a 90% discount to the prevailing Net Asset Value (NAV) (Source: ArrowMark Financial, GuruFocus). Additionally, the company transitioned from quarterly to monthly distributions in December 2025, a move that masked a trending decline in NAV, which dropped from $22.60 in November 2025 to $21.18 by February 28, 2026 (Source: Stock Titan, MarketBeat).
The core bear case centers on interest rate sensitivity and income compression. Approximately 85.7% of BANX's portfolio is invested in regulatory capital relief (RCR) securities, which are floating-rate instruments. As the Federal Reserve moves toward rate cuts in 2026, the yield on these assets will shrink, likely eliminating the special dividends that have historically padded returns (Source: Seeking Alpha, Dividend Kings). Furthermore, the recent rights offering at a 10% discount to NAV suggests the fund may be struggling to raise capital through more traditional, less dilutive means.
NAV erosion is a major red flag, with the fund losing nearly 6% of its underlying value in the four months leading into March 2026 (Source: Global Newswire). Technical analysis from Intellectia AI and Barchart recently flagged the stock as a 'Strong Sell' candidate due to its price falling below the 200-day moving average and a 'falling trend' signal (Source: Intellectia, American Banking News). Short interest, while low in absolute terms, saw high volatility during the rights offering period.
BANX is facing increased competition in the high-yield regulatory capital space, which was previously a 'retail-locked' niche. Eagle Point Credit (ECC) has begun diversifying into RCR securities, directly challenging BANX's primary investment strategy (Source: Seeking Alpha). Additionally, when compared to industry peers like Crescent Capital BDC (CCAP), BANX shows inferior institutional backing (24.9% vs 49.5%) and lower return on equity (Source: MarketBeat).
Investor sentiment is turning neutral-to-bearish as the 'easy money' from high floating rates peaks. Analysts at Stock Traders Daily report a 'breakdown underway' with no immediate long-term support signals, while retail sentiment on platforms like Seeking Alpha expresses concern that the 11% yield may not be sustainable in a falling-rate environment (Source: Stock Traders Daily, Seeking Alpha).