Western Alliance Bancorporation (NYSE:WAL) Shares Down 6.2% - What's Next?

Western Alliance Bancorporation (NYSE:WAL) saw its stock price decline by 6.2% during trading on Tuesday. The shares dropped as low as $89.06 but ended the day at $88.19. In total, 265,000 shares changed hands, marking a significant 78% decrease from the average trading volume of 1,220,398 shares. The stock had previously closed at $94.00.

Changes in Analyst Ratings

Several analysts have recently evaluated WAL shares. On December 17, UBS Group began coverage on Western Alliance Bancorporation, giving the stock a "buy" rating with a target price of $115.00. Meanwhile, Piper Sandler revised its price target down from $102.00 to $101.00, also maintaining an "overweight" rating. Royal Bank of Canada has set a target price of $99.00, indicating an "outperform" rating. Analysts from Stephens reaffirmed an "overweight" rating along with a price target of $103.00. Additionally, Barclays raised its price target from $105.00 to $107.00, while giving the stock an "overweight" rating. Currently, one analyst has rated the stock as a sell, one as a hold, and fifteen have given it a buy rating. The average rating stands at "Moderate Buy" with a target price of $94.38 according to MarketBeat.com.

Current Stock Performance Overview

WAL's market capitalization is approximately $9.93 billion, with a price-to-earnings ratio of 13.95 and a PEG ratio of 0.88. The stock's beta is recorded at 1.46. In terms of liquidity and financial health, Western Alliance Bancorporation has a quick ratio of 0.82, a current ratio of 0.85, and a debt-to-equity ratio of 0.61. The fifty-day moving average for the stock is $88.13, while the two-hundred-day moving average sits at $84.11.

Earnings Results and Predictions

The company recently reported its earnings on January 27, which showed earnings per share (EPS) of $1.95, slightly surpassing the analysts' consensus estimates of $1.92 by $0.03. Western Alliance Bancorporation achieved a return on equity of 13.16% and a net margin of 14.66%. Analysts expect the company to post an EPS of 7.11 for the current fiscal year.

Recent Dividend Increase

Western Alliance Bancorporation has also announced an increase in its quarterly dividend. The latest dividend, which was paid on November 29, was $0.38 per share, up from the previous $0.37. This translates to an annualized dividend of $1.52 and a yield of 1.68%. The ex-dividend date was set for November 15, and the company's dividend payout ratio is currently 23.46%.

Investor Activity and Institutional Stakeholders

Large investors have been actively adjusting their positions in Western Alliance Bancorporation. Generate Investment Management Ltd increased its holdings by 0.7% in the fourth quarter, now owning 417,075 shares valued at approximately $34.84 million. Silver Oak Securities Incorporated entered a new position in the same quarter, worth around $1.16 million. Moreover, Meritage Portfolio Management and Choreo LLC have boosted their holdings by 12.2% and 32.1%, respectively. Institutional investors and hedge funds collectively own about 79.15% of the stock.

About Western Alliance Bancorporation

Western Alliance Bancorporation functions as the parent company for Western Alliance Bank, providing various banking services primarily in Arizona, California, and Nevada. The bank operates through both commercial and consumer segments, offering a variety of deposit products, including checking, savings, and money market accounts.

Future Considerations

As the market evolves, investors may wish to monitor how Western Alliance Bancorporation navigates economic challenges. With current uncertainties, including shifts in the banking sector, it is crucial to stay updated on further developments regarding the company's performance and strategies.

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