Volatility Is Your Friend: Western Alliance Bancorp (WAL) Is Hot Again

Western Alliance Bancorp (NYSE:WAL) does about 896.71K shares in volume on a normal day but saw 1249347 shares change hands in the recent trading day. The company now has a market cap of 6.87B USD. Its current market price is $62.43, marking an increase of 2.09% compared to the previous close of $61.15. The 52 week high reached by this stock is $70.23 whilst the lowest price level in 52 weeks is $37.25. The script in recent trading has seen the stock touch a high of $100 and a low of $65.

Western Alliance Bancorp (WAL) has a 20-day trading average at $60.82 and the current price is -11.11% off the 52-week high compared with 67.60% distance from its 52-week low. The 50-day simple moving average of the closing price is $61.46 and its 200-day simple moving average is $57.13. If we look at the stock’s price movements over the week, volatility stands at 3.37%, which decreases to 2.65% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 53.94 to suggest the stock is neutral.

The consensus objective for the share price is $75.53, suggesting that the stock has a potential upside of 17.34% over the period. The median price target is 29.85% away from the current levels at $89.

5 analysts have rated it as a buy and 1 have advised that investors hold their positions. The consensus recommendation rating is Buy and Wall Street’s advice is for investors to Strong Buy the stock.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on April 22, 2024 when Hovde Group resumed the stock to “Outperform” and issued a price target of $75. Wells Fargo downgraded its price target at $62-$72.

Western Alliance Bancorp (WAL) stock is down -0.27% over the week and 5.89% over the past month. Its price is -5.11% year-to-date and 65.95% over the past year.

Its 12-month price target is $89. To reach the target analysts have set, the stock logically needs to grow 17.34 percent from here. Of course, the average price target is just what the average analysts believe a stock will be worth in the next 52 weeks, and is only one metric. There are analysts with lower targets than the average, including one bearish Wall Street research firm advocating investors to wait for the price to pull back to $65, given the recent momentum. And then, on the bullish side of things, one analyst is expecting the stock to peak at $100.

The company has a return on investment of 9.70% and return on equity of 12.96%. The price to earnings ratio (P/E ratio) amounts to 9.10 while the forward price to earnings ratio is 6.88. The beta has a value of 1.45. Price to book ratio is 1.17 and price to sales ratio is 1.51.