DA Davidson Has Lowered Expectations for WaFd (NASDAQ:WAFD) Stock Price

Key Points

• DA Davidson lowered WaFd’s price target from $40 to $37 while maintaining a “neutral” rating, implying approximately 9.66% upside from the reported share price.
• Analyst sentiment remains cautious: WaFd has an average “Hold” rating and a consensus price target of $36.25. The bank narrowly missed quarterly EPS estimates, although revenue exceeded expectations.
• WaFd’s proposed merger with EverBank could create substantial long-term benefits, including projected 2027 EPS accretion and a combined institution with roughly $75 billion in assets, but the transaction remains subject to approvals and shareholder-law-firm investigations.

WaFd (NASDAQ:WAFD - Get Free Report) had its price target lowered by investment analysts at DA Davidson from $40.00 to $37.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the bank's stock. DA Davidson's target price would indicate a potential upside of 9.66% from the company's current price.

Several other research analysts also recently commented on WAFD. Zacks Research downgraded shares of WaFd from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Weiss Ratings cut shares of WaFd from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, September 3rd. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $36.25.

WaFd Stock Performance

Shares of NASDAQ:WAFD traded down $0.54 during midday trading on Wednesday, reaching $33.74. 709,906 shares of the company traded hands, compared to its average volume of 626,513. The firm's fifty day moving average price is $37.11 and its two-hundred day moving average price is $35.10. The firm has a market capitalization of $2.50 billion, a price-to-earnings ratio of 10.65 and a beta of 0.83. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.20. WaFd has a 12 month low of $26.31 and a 12 month high of $39.49.

WaFd (NASDAQ:WAFD - Get Free Report) last announced its quarterly earnings results on Friday, July 17th. The bank reported $0.81 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). The firm had revenue of $205.52 million during the quarter, compared to analysts' expectations of $199.56 million. WaFd had a return on equity of 8.98% and a net margin of 18.47%. On average, equities analysts expect that WaFd will post 3.23 earnings per share for the current year.

Institutional Trading of WaFd

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of WaFd during the second quarter worth approximately $413,410,000. Dimensional Fund Advisors LP boosted its position in WaFd by 0.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,980,089 shares of the bank's stock valued at $159,514,000 after buying an additional 26,000 shares during the period. California State Teachers Retirement System grew its stake in shares of WaFd by 3,626.3% during the second quarter. California State Teachers Retirement System now owns 3,409,673 shares of the bank's stock valued at $130,829,000 after buying an additional 3,318,170 shares during the last quarter. Systematic Financial Management LP grew its stake in shares of WaFd by 0.5% during the fourth quarter. Systematic Financial Management LP now owns 1,557,436 shares of the bank's stock valued at $49,885,000 after buying an additional 8,039 shares during the last quarter. Finally, Ameriprise Financial Inc. increased its holdings in shares of WaFd by 11.8% in the third quarter. Ameriprise Financial Inc. now owns 1,375,110 shares of the bank's stock worth $41,652,000 after buying an additional 145,646 shares during the period. Institutional investors own 83.71% of the company's stock.

Key Headlines Impacting WaFd

Here are the key news stories impacting WaFd this week:

• Positive Sentiment: Merger targets substantial earnings growth. WaFd and EverBank expect the transaction to be approximately 29% accretive to earnings per share in 2027, which could improve WaFd shareholders’ long-term returns. WaFd's EverBank Merger Deal: A Boost to Earnings & Scale?
• Positive Sentiment: Greater scale and diversification. The combined bank is expected to have roughly $75 billion in assets, a broader deposit base and a more diversified commercial-banking platform. The deal would combine EverBank’s digital capabilities with WaFd’s Pacific Northwest branch network. EverBank-WaFd Deal Bridges Banking's Digital and Branch Divide
• Positive Sentiment: WaFd holders retain a meaningful stake. Upon closing, WaFd shareholders are expected to own approximately 40.8% of the combined company, allowing them to participate in potential benefits from the larger institution. WaFd, Inc. Enters into a $3.9 Billion Reverse Merger Transaction with EverBank Financial Corp
• Neutral Sentiment: Completion remains subject to conditions. Investors are evaluating management’s transaction rationale and integration plans, with the merger still requiring regulatory and shareholder approvals. WaFd, Inc. M&A Call Transcript
• Negative Sentiment: Shareholder law firms are investigating the transaction. Halper Sadeh and Monteverde & Associates announced reviews of whether WaFd shareholders are receiving fair consideration. Such investigations could create legal costs, delay or additional uncertainty around closing, although they do not establish wrongdoing. WAFD Stock Alert: Halper Sadeh Investigation

WaFd Company Profile

Washington Federal, Inc, doing business as WaFd Bank, is a publicly traded bank holding company headquartered in Seattle, Washington. Through its subsidiary, WaFd Bank, the company provides a range of banking and financial services to individuals, small-to-medium enterprises, and commercial clients. Established in 1917 as Ballard Savings & Loan in Seattle, the institution expanded over decades to serve customers across the Western United States under the Washington Federal name and has operated as a public company since the early 1980s.

WaFd Bank's core offerings encompass deposit accounts such as checking, savings, money market, and certificates of deposit, alongside consumer and commercial lending products.

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