Is Western Alliance Stock a Good Investment?
Western Alliance Investment Advice | WAL |
- Examine Western Alliance's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Western Alliance's leadership team and their track record. Good management can help Western Alliance navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Regional Banks space and any emerging trends that could impact Western Alliance's business and its evolving consumer preferences.
- Compare Western Alliance's performance and market position to its competitors. Analyze how Western Alliance is positioned in terms of product offerings, innovation, and market share.
- Check if Western Alliance pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Western Alliance's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Western Alliance Bancorporation stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Western Alliance Bancorporation is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Western Alliance Stock
Researching Western Alliance's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.61. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Western Alliance Ban has Price/Earnings To Growth (PEG) ratio of 1.84. The entity recorded earning per share (EPS) of 6.47. The firm last dividend was issued on the 15th of November 2024.
To determine if Western Alliance is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Western Alliance's research are outlined below:
| Western Alliance Bancorporation has about 1.61 B in cash with (328.6 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.91. | |
| Western Alliance Ban has a frail financial position based on the latest SEC disclosures | |
| Over 91.0% of the company outstanding shares are owned by institutional investors | |
| On 29th of November 2024 Western Alliance paid $ 0.38 per share dividend to its current shareholders | |
| Latest headline from kalkinemedia.com: 3 US Stocks Trading Below Their Potential Value with Strong Growth Prospects |
Western Alliance Quarterly Liabilities And Stockholders Equity |
|
Western Alliance uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Western Alliance Bancorporation. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Western Alliance's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 16th of April 2024 Upcoming Quarterly Report | View | |
| 16th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Western Alliance's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Western Alliance's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2012-01-19 | 2011-12-31 | 0.09 | 0.08 | -0.01 | 11 | ||
2008-01-22 | 2007-12-31 | 0.09 | 0.08 | -0.01 | 11 | ||
2012-07-19 | 2012-06-30 | 0.13 | 0.15 | 0.02 | 15 | ||
2011-10-17 | 2011-09-30 | 0.07 | 0.09 | 0.02 | 28 | ||
2011-07-21 | 2011-06-30 | 0.03 | 0.05 | 0.02 | 66 | ||
2013-04-18 | 2013-03-31 | 0.21 | 0.25 | 0.04 | 19 | ||
2012-10-18 | 2012-09-30 | 0.17 | 0.21 | 0.04 | 23 | ||
2011-04-25 | 2011-03-31 | -0.01 | 0.03 | 0.04 | 400 |
Know Western Alliance's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Western Alliance is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Western Alliance Bancorporation backward and forwards among themselves. Western Alliance's institutional investor refers to the entity that pools money to purchase Western Alliance's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Thrivent Financial For Lutherans | 2024-09-30 | 2.3 M | Geode Capital Management, Llc | 2024-09-30 | 1.9 M | Hhg Plc | 2024-06-30 | 1.8 M | Vaughan Nelson Scarbrgh & Mccullough Lp | 2024-06-30 | 1.6 M | Smead Capital Management Inc | 2024-09-30 | 1.4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.3 M | Hood River Capital Management Llc | 2024-09-30 | 1.2 M | Barrow Hanley Mewhinney & Strauss Llc | 2024-09-30 | 1.2 M | Norges Bank | 2024-06-30 | 1.1 M | Vanguard Group Inc | 2024-09-30 | 10.7 M | Blackrock Inc | 2024-06-30 | 5.4 M |
Western Alliance's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.3 B.Market Cap |
|
Western Alliance's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.12 | 0.07 |
Determining Western Alliance's profitability involves analyzing its financial statements and using various financial metrics to determine if Western Alliance is a good buy. For example, gross profit margin measures Western Alliance's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Western Alliance's profitability and make more informed investment decisions.
Western Alliance's Earnings Breakdown by Geography
Evaluate Western Alliance's management efficiency
Return On Capital Employed is expected to rise to 0.01 this year, although the value of Return On Tangible Assets will most likely fall to 0.01. At this time, Western Alliance's Earning Assets are quite stable compared to the past year. Western Alliance's management efficiency ratios could be used to measure how well Western Alliance manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 56.12 | 58.93 | |
| Tangible Book Value Per Share | 39.57 | 41.54 | |
| Enterprise Value Over EBITDA | 13.40 | 14.07 | |
| Price Book Value Ratio | 1.17 | 1.11 | |
| Enterprise Value Multiple | 13.40 | 14.07 | |
| Price Fair Value | 1.17 | 1.11 | |
| Enterprise Value | -34.5 M | -32.7 M |
Evaluating the management effectiveness of Western Alliance allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Western Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.0163 | Forward Dividend Yield 0.0163 | Forward Dividend Rate 1.52 | Beta 1.435 |
Basic technical analysis of Western Stock
As of the 30th of November, Western Alliance maintains the Mean Deviation of 1.88, market risk adjusted performance of 0.1142, and Downside Deviation of 2.43. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Western Alliance Bancorporation, as well as the relationship between them. Please check out Western Alliance Ban jensen alpha and downside variance to decide if Western Alliance Ban is priced fairly, providing market reflects its latest price of 93.61 per share. Given that Western Alliance Bancorporation has jensen alpha of (0.06), we strongly advise you to confirm Western Alliance Ban's prevalent market performance to make sure the company can sustain itself at a future point.Western Alliance's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Western Alliance insiders, such as employees or executives, is commonly permitted as long as it does not rely on Western Alliance's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Western Alliance insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Western Alliance's Outstanding Corporate Bonds
Western Alliance issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Western Alliance Ban uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Western bonds can be classified according to their maturity, which is the date when Western Alliance Bancorporation has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Western Alliance's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Western Alliance's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0803 | |||
| Market Risk Adjusted Performance | 0.1142 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.14 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 1047.49 | |||
| Standard Deviation | 2.86 | |||
| Variance | 8.16 | |||
| Information Ratio | 0.0473 | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | 0.0556 | |||
| Treynor Ratio | 0.1042 | |||
| Maximum Drawdown | 19.53 | |||
| Value At Risk | (3.17) | |||
| Potential Upside | 3.91 | |||
| Downside Variance | 5.91 | |||
| Semi Variance | 4.6 | |||
| Expected Short fall | (2.32) | |||
| Skewness | 0.9106 | |||
| Kurtosis | 7.67 |
| Risk Adjusted Performance | 0.0803 | |||
| Market Risk Adjusted Performance | 0.1142 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.14 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 1047.49 | |||
| Standard Deviation | 2.86 | |||
| Variance | 8.16 | |||
| Information Ratio | 0.0473 | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | 0.0556 | |||
| Treynor Ratio | 0.1042 | |||
| Maximum Drawdown | 19.53 | |||
| Value At Risk | (3.17) | |||
| Potential Upside | 3.91 | |||
| Downside Variance | 5.91 | |||
| Semi Variance | 4.6 | |||
| Expected Short fall | (2.32) | |||
| Skewness | 0.9106 | |||
| Kurtosis | 7.67 |
Consider Western Alliance's intraday indicators
Western Alliance intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Western Alliance stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Western Alliance Corporate Filings
F4 | 18th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
8K | 1st of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Western Stock media impact
Far too much social signal, news, headlines, and media speculation about Western Alliance that are available to investors today. That information is available publicly through Western media outlets and privately through word of mouth or via Western internal channels. However, regardless of the origin, that massive amount of Western data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Western Alliance news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Western Alliance relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Western Alliance's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Western Alliance alpha.
Western Alliance Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Western Alliance can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Western Alliance Ban Historical Investor Sentiment
Investor biases related to Western Alliance's public news can be used to forecast risks associated with an investment in Western. The trend in average sentiment can be used to explain how an investor holding Western can time the market purely based on public headlines and social activities around Western Alliance Bancorporation. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Western Alliance's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Western Alliance and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Western Alliance news discussions. The higher the estimate score, the more favorable the investor's outlook on Western Alliance.
Western Alliance Corporate Directors
| Steven Hilton | Independent Director | Profile | |
| Marianne Johnson | Independent Director | Profile | |
| Donald Snyder | Independent Director | Profile | |
| Bruce Beach | Lead Independent Director | Profile |
Already Invested in Western Alliance Bancorporation?
The danger of trading Western Alliance Bancorporation is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Western Alliance is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Western Alliance. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Western Alliance Ban is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Western Alliance Ban is a strong investment it is important to analyze Western Alliance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Western Alliance's future performance. For an informed investment choice regarding Western Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Western Alliance Bancorporation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Western Alliance. If investors know Western will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Western Alliance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.09) | Dividend Share 1.48 | Earnings Share 6.47 | Revenue Per Share 26.821 | Quarterly Revenue Growth 0.121 |
The market value of Western Alliance Ban is measured differently than its book value, which is the value of Western that is recorded on the company's balance sheet. Investors also form their own opinion of Western Alliance's value that differs from its market value or its book value, called intrinsic value, which is Western Alliance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Western Alliance's market value can be influenced by many factors that don't directly affect Western Alliance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Western Alliance's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Western Alliance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Alliance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.