Western Alliance (NYSE:WAL) Bancorporation (NYSE:WAL) has announced the declaration of quarterly dividends for both its common and preferred stock. The Board of Directors, through unanimous written consent on Thursday, has approved a cash dividend of $0.38 per share for its common stock. This dividend is slated for distribution on November 29, 2024, to shareholders who are on record as of November 15, 2024.
Additionally, the company has declared a quarterly cash dividend for its 4.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A. The approved amount is $106.25 per share, which translates to $0.265625 per depositary share. Shareholders of record as of December 17, 2024, will receive the dividend on December 30, 2024.
The announcement, filed as part of an 8-K submission to the Securities and Exchange Commission, ensures that investors are informed of these key financial decisions. The report is based on a press release statement and underscores the company's ongoing financial activities.
In other recent news, Western Alliance Bancorporation has been the focus of multiple financial firms' analyses. Piper Sandler reduced its price target for Western Alliance to $101, maintaining an Overweight rating, citing a slight decrease in earnings per share (EPS) estimates for the coming years. The firm's new EPS projections are $7.10 for 2024, $9.15 for 2025, and introduced an estimate of $10.30 for 2026.
Citi raised its price target for Western Alliance to $102, maintaining a Buy rating. The firm anticipates a reduction in the bank's GAAP expenses in the upcoming year, based on an expected 22% reduction in Earnings Credit Rate (ECR) deposit costs in 2025. Barclays, on the other hand, reduced its price target to $105 but maintained an Overweight rating.
These recent developments come after Western Alliance Bancorporation reported a steady third-quarter performance with an EPS of $1.80, significant deposit growth of $1.8 billion, and loan growth of $916 million. The bank anticipates fourth-quarter loan growth at approximately $1.25 billion, with a projected decrease in deposits by $2 billion due to seasonal outflows.
InvestingPro Insights
Western Alliance Bancorporation's recent dividend announcement aligns with its track record of shareholder value creation. According to InvestingPro data, the company has raised its dividend for 5 consecutive years, demonstrating a consistent commitment to returning capital to shareholders. The current dividend yield stands at 1.78%, based on the most recent data.
The bank's financial performance has been robust, with a revenue growth of 12.72% over the last twelve months as of Q3 2024, reaching $2.91 billion. This growth is complemented by a strong operating income margin of 39.17% for the same period, indicating efficient operations.
InvestingPro Tips highlight that Western Alliance has been profitable over the last twelve months and analysts predict continued profitability this year. The company's P/E ratio of 12.87 suggests that the stock may be reasonably valued compared to its earnings.
Investors should note that Western Alliance has experienced a significant price uptick over the last six months, with a total return of 43.1%. This performance contributes to an impressive one-year total return of 101.13%, reflecting strong market confidence in the bank's prospects.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips that could provide valuable insights into Western Alliance's financial health and future outlook.
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