Western Alliance Bancorporation (NYSE:WAL) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Western Alliance Bancorporation beat quarterly expectations, posting EPS of $2.36 versus the $2.33 consensus estimate and revenue of $995.7 million, which also topped forecasts. Revenue rose 17.7% from a year earlier.
• Despite the earnings beat, the stock edged lower, trading down 0.4% to $80.65 in mid-day trading on Tuesday. The shares were active, with volume above their average level.
• The company continues to return cash to shareholders through a quarterly dividend of $0.42 per share, or $1.68 annualized, implying a 2.1% yield. The payout ratio is relatively modest at 19.56%.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) released its earnings results on Tuesday. The financial services provider reported $2.36 earnings per share for the quarter, beating the consensus estimate of $2.33 by $0.03, FiscalAI reports. The business had revenue of $995.70 million for the quarter, compared to the consensus estimate of $980.53 million. Western Alliance Bancorporation had a return on equity of 13.58% and a net margin of 17.03%.The business's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $2.07 earnings per share.

Western Alliance Bancorporation Trading Down 0.4%

Shares of NYSE WAL traded down $0.32 during mid-day trading on Tuesday, reaching $80.65. 1,472,596 shares of the company's stock were exchanged, compared to its average volume of 1,211,714. The firm has a market capitalization of $8.81 billion, a price-to-earnings ratio of 9.39, a PEG ratio of 0.75 and a beta of 1.34. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.81 and a current ratio of 0.86. Western Alliance Bancorporation has a 52-week low of $65.82 and a 52-week high of $97.23. The company's 50-day moving average is $80.03 and its 200-day moving average is $81.25.

Western Alliance Bancorporation Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Thursday, May 14th were paid a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Thursday, May 14th. Western Alliance Bancorporation's dividend payout ratio is 19.56%.

Insider Transactions at Western Alliance Bancorporation

In other Western Alliance Bancorporation news, CAO Ben Mucha sold 5,946 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $81.00, for a total value of $481,626.00. Following the transaction, the chief accounting officer owned 3,485 shares of the company's stock, valued at $282,285. This represents a 63.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 2.76% of the company's stock.

Institutional Investors Weigh In On Western Alliance Bancorporation

Institutional investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD boosted its holdings in Western Alliance Bancorporation by 9.8% in the fourth 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 Western Alliance Bancorporation by 7.9% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 6,450,408 shares of the financial services provider's stock worth $542,286,000 after purchasing an additional 470,492 shares during the period. AQR Capital Management LLC raised its position in Western Alliance Bancorporation by 2,331.6% in the 4th quarter. AQR Capital Management LLC now owns 485,508 shares of the financial services provider's stock valued at $40,817,000 after purchasing an additional 465,541 shares in the last quarter. Victory Capital Management Inc. raised its position in Western Alliance Bancorporation by 72.4% in the 4th quarter. Victory Capital Management Inc. now owns 585,538 shares of the financial services provider's stock valued at $49,226,000 after purchasing an additional 245,934 shares in the last quarter. Finally, Smead Capital Management Inc. boosted its stake in shares of Western Alliance Bancorporation by 19.2% in the 2nd quarter. Smead Capital Management Inc. now owns 1,435,247 shares of the financial services provider's stock valued at $111,921,000 after buying an additional 231,159 shares during the period. 79.15% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts recently commented on the company. Weiss Ratings raised Western Alliance Bancorporation from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, May 26th. Citigroup increased their target price on shares of Western Alliance Bancorporation from $96.00 to $98.00 and gave the company a "buy" rating in a research report on Thursday, June 25th. UBS Group raised their price target on shares of Western Alliance Bancorporation from $75.00 to $80.00 and gave the stock a "neutral" rating in a research note on Monday, April 27th. Keefe, Bruyette & Woods boosted their price target on shares of Western Alliance Bancorporation from $93.00 to $94.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Finally, Piper Sandler dropped their price objective on shares of Western Alliance Bancorporation from $94.00 to $92.00 and set an "overweight" rating for the company in a research note on Monday, April 27th. Ten research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $94.00.

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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