Western Alliance Bancorporation Plans Quarterly Dividend of $0.42 (NYSE:WAL)

Key Points

• Western Alliance Bancorporation declared a quarterly dividend of $0.42 per share (record date May 14, payable May 29), implying a 2.1% yield and $1.68 annual payout; the dividend is well covered with a payout ratio around 15.9% and has been increased each year for the past five years.
• The company reported Q1 EPS of $2.22, beating estimates by $0.74, with revenue of $968.4 million, up 31% year-over-year, and solid profitability metrics (net margin 17.0%, ROE 13.6%).
• WAL shares traded near $81.78 (market cap ~$8.9B, PE ~9.5) and carry a consensus analyst rating of Moderate Buy with an average price target of $93.14.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) declared a quarterly dividend on Thursday, April 30th. Shareholders of record on Thursday, May 14th will be paid a dividend of 0.42 per share by the financial services provider on Friday, May 29th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, May 14th.

Western Alliance Bancorporation has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 5 years. Western Alliance Bancorporation has a dividend payout ratio of 15.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Western Alliance Bancorporation to earn $11.63 per share next year, which means the company should continue to be able to cover its $1.68 annual dividend with an expected future payout ratio of 14.4%.

Western Alliance Bancorporation Trading Up 0.3%

WAL stock traded up $0.24 during mid-day trading on Friday, reaching $81.78. The company had a trading volume of 306,104 shares, compared to its average volume of 1,288,848. The company has a debt-to-equity ratio of 0.88, a current ratio of 0.85 and a quick ratio of 0.80. The company has a market capitalization of $8.89 billion, a PE ratio of 9.52, a price-to-earnings-growth ratio of 0.61 and a beta of 1.37. The firm has a 50 day moving average of $75.93 and a 200 day moving average of $81.53. Western Alliance Bancorporation has a 12 month low of $65.82 and a 12 month high of $97.23.

Western Alliance Bancorporation (NYSE:WAL - Get Free Report) last issued its earnings results on Tuesday, April 21st. The financial services provider reported $2.22 EPS for the quarter, topping analysts' consensus estimates of $1.48 by $0.74. Western Alliance Bancorporation had a net margin of 17.03% and a return on equity of 13.58%. The business had revenue of $968.40 million for the quarter, compared to the consensus estimate of $944.18 million. During the same period in the prior year, the firm earned $1.79 EPS. The company's revenue for the quarter was up 31.0% compared to the same quarter last year. On average, equities analysts predict that Western Alliance Bancorporation will post 9.92 earnings per share for the current fiscal year.

Analyst Ratings Changes

WAL has been the subject of several research reports. Piper Sandler lowered their price target on shares of Western Alliance Bancorporation from $94.00 to $92.00 and set an "overweight" rating for the company in a research report on Monday. Keefe, Bruyette & Woods upped 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. Weiss Ratings cut shares of Western Alliance Bancorporation from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, March 20th. DA Davidson reaffirmed a "buy" rating and issued a $93.00 price target on shares of Western Alliance Bancorporation in a research report on Wednesday, April 22nd. Finally, UBS Group upped 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 report on Monday. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $93.14.

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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