Western Alliance Bancorporation (NYSE:WAL) Announces Earnings Results, Beats Expectations By $0.28 EPS

Key Points

• Western Alliance beat expectations: Q1 EPS was $2.22 vs. $1.94 consensus and revenue was $968.4M vs. $944.18M, with a net margin of 18.04% and ROE of 13.33%.
• Shares fell to $78.02 after the report; the bank trades at a P/E of 8.94 with a market cap of $8.57B and a 12‑month range of $62.38–$97.23, while analysts have trimmed price targets but the consensus rating remains a "Moderate Buy" with an average target of $93.27.
• The company paid a quarterly dividend of $0.42 (annualized $1.68, yield 2.2%), and institutional ownership is high at 79.15% with several large funds increasing their stakes.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) issued its quarterly earnings data on Tuesday. The financial services provider reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.94 by $0.28, FiscalAI reports. The company had revenue of $968.40 million for the quarter, compared to the consensus estimate of $944.18 million. Western Alliance Bancorporation had a net margin of 18.04% and a return on equity of 13.33%.

Western Alliance Bancorporation Stock Performance

NYSE WAL traded down $1.43 during trading hours on Tuesday, hitting $78.02. 1,076,491 shares of the stock were exchanged, compared to its average volume of 1,320,243. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 0.83. The company has a market cap of $8.57 billion, a price-to-earnings ratio of 8.94, a price-to-earnings-growth ratio of 0.70 and a beta of 1.37. Western Alliance Bancorporation has a 12-month low of $62.38 and a 12-month high of $97.23. The stock has a 50-day moving average of $78.20 and a 200 day moving average of $81.69.

Western Alliance Bancorporation Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Friday, February 20th were issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Friday, February 20th. Western Alliance Bancorporation's dividend payout ratio is currently 19.24%.

Hedge Funds Weigh In On Western Alliance Bancorporation

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD lifted 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 buying an additional 777,369 shares during the period. Barrow Hanley Mewhinney & Strauss LLC grew its holdings in Western Alliance Bancorporation by 7.9% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 6,450,408 shares of the financial services provider's stock worth $542,286,000 after acquiring an additional 470,492 shares during the period. Invesco Ltd. raised its position in 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 worth $521,710,000 after acquiring an additional 197,854 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Western Alliance Bancorporation by 2.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,777,461 shares of the financial services provider's stock worth $317,574,000 after acquiring an additional 102,943 shares in the last quarter. Finally, Wellington Management Group LLP lifted its holdings in 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 acquiring an additional 36,364 shares during the period. Institutional investors and hedge funds own 79.15% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. DA Davidson reduced their target price on shares of Western Alliance Bancorporation from $105.00 to $93.00 and set a "buy" rating for the company in a report on Tuesday, March 10th. Citigroup lowered their price target on Western Alliance Bancorporation from $107.00 to $103.00 and set a "buy" rating on the stock in a report on Monday, March 9th. Piper Sandler reduced their price objective on Western Alliance Bancorporation from $108.00 to $94.00 and set an "overweight" rating for the company in a research note on Thursday, April 2nd. UBS Group reaffirmed a "neutral" rating and set a $75.00 price objective (down from $106.00) on shares of Western Alliance Bancorporation in a research report on Tuesday, April 7th. Finally, JPMorgan Chase & Co. lowered their target price on Western Alliance Bancorporation from $105.00 to $77.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 1st. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $93.27.

Western Alliance Bancorporation Company Profile

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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