Western Alliance Bancorporation (NYSE:WAL) Shares Down 3.7% - Here's What Happened

Key Points

• Western Alliance Bancorporation shares dropped by 3.7%, closing at $82.83 after reaching a low of $81.46 during trading.
• Despite the decline, analysts maintain a generally positive outlook, with the stock receiving a "Moderate Buy" rating and an average target price of $102.14.
• The bank recently announced a quarterly dividend of $0.38, yielding 1.8%, with a payout ratio of 19.97%.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) shares were down 3.7% during trading on Wednesday . The company traded as low as $81.46 and last traded at $82.83. Approximately 1,123,560 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 1,102,583 shares. The stock had previously closed at $86.00.

Analyst Ratings Changes

Several equities analysts have recently issued reports on WAL shares. Citigroup reaffirmed a "neutral" rating on shares of Western Alliance Bancorporation in a research note on Tuesday, August 26th. DA Davidson lifted their price objective on shares of Western Alliance Bancorporation from $90.00 to $98.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Truist Financial dropped their target price on shares of Western Alliance Bancorporation from $96.00 to $93.00 and set a "buy" rating on the stock in a research report on Monday, July 21st. Wells Fargo & Company downgraded shares of Western Alliance Bancorporation from an "equal weight" rating to an "underweight" rating and boosted their target price for the stock from $85.00 to $90.00 in a research report on Monday, September 29th. Finally, Barclays restated an "overweight" rating on shares of Western Alliance Bancorporation in a research note on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $102.14.

Western Alliance Bancorporation Trading Down 3.9%

The business's fifty day simple moving average is $85.73 and its 200 day simple moving average is $78.47. The company has a current ratio of 0.86, a quick ratio of 0.82 and a debt-to-equity ratio of 0.95. The stock has a market cap of $9.12 billion, a P/E ratio of 10.86, a price-to-earnings-growth ratio of 0.60 and a beta of 1.35.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The financial services provider reported $2.07 EPS for the quarter, topping analysts' consensus estimates of $2.04 by $0.03. Western Alliance Bancorporation had a net margin of 16.39% and a return on equity of 12.62%. The firm had revenue of $836.21 million for the quarter, compared to analyst estimates of $838.58 million. During the same quarter in the prior year, the firm earned $1.75 EPS. As a group, analysts expect that Western Alliance Bancorporation will post 9.05 EPS for the current year.

Western Alliance Bancorporation Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Thursday, August 14th were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Thursday, August 14th. Western Alliance Bancorporation's dividend payout ratio (DPR) is 19.97%.

Insider Activity

In other news, insider Tim R. Bruckner sold 2,500 shares of the firm's stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $83.91, for a total value of $209,775.00. Following the transaction, the insider owned 24,759 shares of the company's stock, valued at approximately $2,077,527.69. This trade represents a 9.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 2.75% of the company's stock.

Institutional Trading of Western Alliance Bancorporation

A number of hedge funds have recently modified their holdings of WAL. GAMMA Investing LLC raised its holdings in Western Alliance Bancorporation by 6.2% during the 2nd quarter. GAMMA Investing LLC now owns 2,317 shares of the financial services provider's stock worth $181,000 after buying an additional 136 shares during the period. National Bank of Canada FI raised its holdings in Western Alliance Bancorporation by 22.7% during the 1st quarter. National Bank of Canada FI now owns 763 shares of the financial services provider's stock worth $59,000 after buying an additional 141 shares during the period. EJF Capital LLC raised its holdings in Western Alliance Bancorporation by 2.5% during the 2nd quarter. EJF Capital LLC now owns 6,223 shares of the financial services provider's stock worth $485,000 after buying an additional 149 shares during the period. Wealth Enhancement Advisory Services LLC raised its holdings in Western Alliance Bancorporation by 5.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 3,087 shares of the financial services provider's stock worth $258,000 after buying an additional 166 shares during the period. Finally, D.A. Davidson & CO. raised its holdings in Western Alliance Bancorporation by 2.9% during the 1st quarter. D.A. Davidson & CO. now owns 6,056 shares of the financial services provider's stock worth $465,000 after buying an additional 169 shares during the period. 79.15% of the stock is currently owned by institutional investors and hedge funds.

Western Alliance Bancorporation Company Profile

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services.

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