BlackRock Inc. Invests $926.90 Million in Western Alliance Bancorporation $WAL

Key Points

• BlackRock acquired 11.28 million shares of Western Alliance Bancorporation in the second quarter, valued at approximately $926.9 million and representing a 10.34% stake. Institutional investors and hedge funds collectively own 79.15% of WAL.
• Analysts maintain a generally positive outlook, with 11 Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of $95.47.
• Western Alliance reported second-quarter revenue of $995.7 million, up 17.7% year over year, while matching estimates with EPS of $2.36. The company also declared a quarterly dividend of $0.42 per share, yielding about 2.1% annually.

BlackRock Inc. bought a new stake in Western Alliance Bancorporation (NYSE:WAL - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 11,276,134 shares of the financial services provider's stock, valued at approximately $926,898,000. BlackRock Inc. owned approximately 10.34% of Western Alliance Bancorporation at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in WAL. Price T Rowe Associates Inc. MD raised its holdings in shares of Western Alliance Bancorporation by 9.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 8,746,867 shares of the financial services provider's stock valued at $735,350,000 after purchasing an additional 777,369 shares during the period. Barrow Hanley Mewhinney & Strauss LLC increased its holdings in shares of Western Alliance Bancorporation by 7.9% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 6,450,408 shares of the financial services provider's stock valued at $542,286,000 after purchasing an additional 470,492 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Western Alliance Bancorporation by 3.4% in the third quarter. Invesco Ltd. now owns 6,016,027 shares of the financial services provider's stock valued at $521,710,000 after purchasing an additional 197,854 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Western Alliance Bancorporation by 1.0% in the first quarter. Dimensional Fund Advisors LP now owns 3,813,995 shares of the financial services provider's stock valued at $270,203,000 after purchasing an additional 36,534 shares during the period. Finally, Wellington Management Group LLP raised its position in shares of Western Alliance Bancorporation by 1.6% in the third quarter. Wellington Management Group LLP now owns 2,288,233 shares of the financial services provider's stock valued at $198,436,000 after purchasing an additional 36,364 shares during the period. 79.15% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on WAL. DA Davidson set a $36.00 price target on shares of Western Alliance Bancorporation in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. boosted their price objective on Western Alliance Bancorporation from $90.00 to $93.00 and gave the stock a "neutral" rating in a report on Thursday, July 23rd. UBS Group upped their target price on Western Alliance Bancorporation from $75.00 to $80.00 and gave the company a "neutral" rating in a research report on Monday, April 27th. Piper Sandler increased their target price on Western Alliance Bancorporation from $92.00 to $97.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. Finally, Truist Financial upped their price objective on Western Alliance Bancorporation from $90.00 to $93.00 and gave the company a "buy" rating in a report on Monday, July 27th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $95.47.

Insider Activity

In related news, CAO Ben Mucha sold 5,946 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $81.00, for a total transaction of $481,626.00. Following the sale, the chief accounting officer owned 3,485 shares in the company, valued at approximately $282,285. This trade represents a 63.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 2.76% of the company's stock.

Western Alliance Bancorporation Stock Performance

WAL opened at $79.78 on Friday. The firm has a market cap of $8.70 billion, a P/E ratio of 8.98, a price-to-earnings-growth ratio of 0.77 and a beta of 1.34. Western Alliance Bancorporation has a 52-week low of $65.82 and a 52-week high of $97.23. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.81 and a current ratio of 0.86. The business's fifty day moving average is $81.41 and its 200-day moving average is $80.22.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $2.36 EPS for the quarter, meeting analysts' consensus estimates of $2.36. Western Alliance Bancorporation had a return on equity of 13.40% and a net margin of 17.20%.The business had revenue of $995.70 million during the quarter, compared to the consensus estimate of $980.53 million. During the same quarter in the previous year, the firm earned $2.07 earnings per share. Western Alliance Bancorporation's revenue for the quarter was up 17.7% compared to the same quarter last year. Sell-side analysts expect that Western Alliance Bancorporation will post 9.16 EPS for the current fiscal year.

Western Alliance Bancorporation Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, August 13th. Western Alliance Bancorporation's dividend payout ratio is 18.92%.

About Western Alliance Bancorporation

Western Alliance Bancorporation is a bank holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Western Alliance Bank, the company provides a range of banking services to commercial clients, entrepreneurs and real estate developers. As one of the largest regional banks in the western United States, it focuses on relationship-driven banking solutions tailored to niche industries and growing businesses.

The company's core offerings include deposit products, treasury management and a variety of lending services.

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