Western Alliance Bancorporation (NYSE:WAL) Shares Gap Up on Earnings Beat

Key Points

• Western Alliance Bancorporation reported a better than expected earnings per share of $1.91 for the quarter, leading to a stock price increase from $76.25 to an opening of $79.09.
• The company declared a quarterly dividend of $0.38 per share, translating to a 2.0% dividend yield and indicating a low dividend payout ratio of 19.97%.
• Research analysts have shown a positive outlook on the stock, with thirteen giving a "Buy" rating and an average price target of $103.14.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $76.25, but opened at $79.09. Western Alliance Bancorporation shares last traded at $77.36, with a volume of 335,579 shares trading hands.

The financial services provider reported $1.91 earnings per share for the quarter. Western Alliance Bancorporation had a net margin of 16.39% and a return on equity of 12.62%. The company had revenue of $718.00 million for the quarter.

Western Alliance Bancorporation Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Thursday, August 14th were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, August 14th. Western Alliance Bancorporation's dividend payout ratio (DPR) is presently 19.97%.

Analyst Upgrades and Downgrades

WAL has been the topic of several research reports. Wells Fargo & Company reaffirmed an "underweight" rating on shares of Western Alliance Bancorporation in a research report on Wednesday, October 8th. Cowen initiated coverage on shares of Western Alliance Bancorporation in a research report on Wednesday, September 24th. They issued a "buy" rating on the stock. TD Cowen initiated coverage on shares of Western Alliance Bancorporation in a research report on Thursday, September 25th. They issued a "buy" rating and a $118.00 price objective on the stock. Industrial Alliance Securities set a $112.00 price objective on shares of Western Alliance Bancorporation in a research report on Wednesday, October 8th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Western Alliance Bancorporation in a research report on Wednesday, October 8th. Thirteen research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, Western Alliance Bancorporation presently has an average rating of "Moderate Buy" and an average price target of $103.14.

Insider Activity at Western Alliance Bancorporation

In other news, insider Tim R. Bruckner sold 2,500 shares of the firm's stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $83.91, for a total value of $209,775.00. Following the completion of the transaction, the insider directly owned 24,759 shares of the company's stock, valued at $2,077,527.69. This trade represents a 9.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.75% of the stock is owned by insiders.

Hedge Funds Weigh In On Western Alliance Bancorporation

A number of large investors have recently made changes to their positions in WAL. GAMMA Investing LLC grew its stake in Western Alliance Bancorporation by 6.2% during the second quarter. GAMMA Investing LLC now owns 2,317 shares of the financial services provider's stock valued at $181,000 after acquiring an additional 136 shares in the last quarter. Silver Oak Securities Incorporated grew its stake in Western Alliance Bancorporation by 1.0% in the 3rd quarter. Silver Oak Securities Incorporated now owns 14,318 shares of the financial services provider's stock worth $1,242,000 after buying an additional 138 shares in the last quarter. National Bank of Canada FI grew its stake in Western Alliance Bancorporation by 22.7% in 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 in the last quarter. EJF Capital LLC boosted its stake in shares of Western Alliance Bancorporation by 2.5% in the 2nd quarter. EJF Capital LLC now owns 6,223 shares of the financial services provider's stock valued at $485,000 after purchasing an additional 149 shares in the last quarter. Finally, Salzhauer Michael boosted its stake in shares of Western Alliance Bancorporation by 0.3% in the 3rd quarter. Salzhauer Michael now owns 44,815 shares of the financial services provider's stock valued at $3,886,000 after purchasing an additional 152 shares in the last quarter. 79.15% of the stock is owned by institutional investors.

Western Alliance Bancorporation Stock Up 1.1%

The stock's 50 day moving average price is $85.47 and its 200-day moving average price is $78.59. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.82 and a current ratio of 0.86. The company has a market cap of $8.51 billion, a PE ratio of 10.13, a PEG ratio of 0.54 and a beta of 1.35.

About Western Alliance Bancorporation

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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