Western Alliance Bancorporation (NYSE:WAL) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down: Western Alliance opened at $71.25 after a $80.74 close and was last at $69.64 (down about 14.8%) on roughly 1.15 million shares traded.
• Analyst sentiment remains mostly positive: the consensus is a "Moderate Buy" with an average target of $103.73 (11 Buys, 2 Holds, 1 Sell) and recent price-target increases, including Jefferies to $110.
• Quarterly results and dividend: the company reported $2.59 EPS (beats estimates) and revenue up 17% YoY but slightly below forecasts, and declared a $0.42 quarterly dividend (2.4% yield); valuation shows a P/E of 7.88.

Shares of Western Alliance Bancorporation (NYSE:WAL - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $80.74, but opened at $71.25. Western Alliance Bancorporation shares last traded at $69.64, with a volume of 1,150,771 shares.

Analyst Ratings Changes

A number of research firms have recently issued reports on WAL. iA Financial set a $101.00 price target on shares of Western Alliance Bancorporation in a research report on Wednesday, January 28th. Truist Financial set a $98.00 price target on Western Alliance Bancorporation in a research report on Friday, January 9th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Western Alliance Bancorporation in a research note on Monday, December 29th. Jefferies Financial Group increased their price objective on shares of Western Alliance Bancorporation from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Finally, DA Davidson lifted their target price on shares of Western Alliance Bancorporation from $104.00 to $105.00 and gave the stock a "buy" rating in a research report on Thursday, January 29th. Eleven investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $103.73.

Western Alliance Bancorporation Trading Down 14.8%

The firm has a market cap of $7.56 billion, a price-to-earnings ratio of 7.88, a price-to-earnings-growth ratio of 0.69 and a beta of 1.34. The business has a 50 day moving average of $88.84 and a 200 day moving average of $85.31. The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 0.83.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) last released its earnings results on Tuesday, January 27th. The financial services provider reported $2.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.19. Western Alliance Bancorporation had a net margin of 18.04% and a return on equity of 13.33%. The company had revenue of $890.80 million for the quarter, compared to analyst estimates of $912.69 million. During the same period in the prior year, the firm earned $1.95 EPS. The firm's quarterly revenue was up 17.0% on a year-over-year basis. On average, research analysts forecast that Western Alliance Bancorporation will post 9.05 earnings per share for the current fiscal year.

Western Alliance Bancorporation Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Friday, February 20th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $1.68 annualized dividend and a dividend yield of 2.4%. Western Alliance Bancorporation's dividend payout ratio is presently 19.24%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WAL. Halbert Hargrove Global Advisors LLC acquired a new stake in shares of Western Alliance Bancorporation during the third quarter worth $26,000. Quent Capital LLC purchased a new position in Western Alliance Bancorporation during the third quarter worth about $26,000. Salomon & Ludwin LLC purchased a new position in Western Alliance Bancorporation during the third quarter worth about $27,000. Root Financial Partners LLC acquired a new stake in Western Alliance Bancorporation in the 3rd quarter worth about $27,000. Finally, Clearstead Advisors LLC grew its holdings in Western Alliance Bancorporation by 144.6% in the 4th quarter. Clearstead Advisors LLC now owns 411 shares of the financial services provider's stock valued at $35,000 after buying an additional 243 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 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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