Last Updated: 18 Sep 2024
Executive Summary
Western Alliance Bancorporation (WAL) is a leading regional bank holding company with a market capitalization of $9.16 billion. The company has a strong financial position with a book value of $55.3 and a profit margin of 0.26. WAL's stock is currently trading at $83.22, within its 52-week range of $37.88 and $85.97. Analysts have a positive outlook on the stock, with six rating it a strong buy and nine rating it a buy.
Company Overview
WAL is a diversified financial services company that offers a range of banking products and services to individuals, businesses, and municipalities. The company operates primarily in Arizona, California, and Nevada. WAL's main banking subsidiary, Western Alliance Bank, has a network of over 100 branches and provides a full suite of deposit, lending, and investment services.
Fundamental Analysis
WAL's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years. Net income has also grown at a CAGR of 12% over the same period. WAL's profitability metrics are also strong, with a net profit margin of 26% and a return on equity (ROE) of 12.2%.
The company's balance sheet is also strong. WAL has a low level of debt and a high level of capital. The company's Tier 1 capital ratio is 11.5%, which is well above the regulatory minimum.
Technical Analysis
WAL's stock price has been trending higher in recent months. The stock broke out of a resistance level at $80 in June and has since reached a high of $85.97. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign.
Short Term Outlook
In the short term, WAL's stock is likely to continue to trade higher. The stock is currently trading above its key moving averages and has a strong relative strength index (RSI) of 65. The RSI is a momentum indicator that measures the strength of a stock's price movement. A reading above 50 indicates that the stock is in a bullish trend.
Long Term Outlook
In the long term, WAL's stock is likely to continue to perform well. The company has a strong financial position, a growing business, and a favorable industry outlook. The banking industry is expected to benefit from rising interest rates, which will increase the profitability of banks.
Analyst Recommendations
Analysts have a positive outlook on WAL's stock. Six analysts rate the stock a strong buy and nine rate it a buy. The average analyst target price is $87.08, which represents a potential upside of 4.7% from the current price.
