Western Alliance Bancorporation Stock Buy Hold or Sell Recommendation
| WAL Stock | USD 55.49 0.21 0.38% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Western Alliance Bancorporation is 'Sell'. Macroaxis provides Western Alliance buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WAL positions. The advice algorithm takes into account all of Western Alliance's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Western Alliance's buy or sell advice are summarized below:
Real Value 46.61 | Target Price 57.84 | Hype Value 55.49 | Market Value 55.49 | Naive Value 52.16 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Western Alliance Bancorporation given historical horizon and risk tolerance towards Western Alliance. When Macroaxis issues a 'buy' or 'sell' recommendation for Western Alliance Bancorporation, the advice is generated through an automated system that utilizes algorithms and statistical models.
Western |
Execute Western Alliance Buy or Sell Advice
The Western recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Western Alliance Bancorporation. Macroaxis does not own or have any residual interests in Western Alliance Bancorporation or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Western Alliance's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Western Alliance Trading Alerts and Improvement Suggestions
| Western Alliance Ban generated a negative expected return over the last 90 days | |
| 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. | |
| Over 82.0% of the company outstanding shares are owned by institutional investors | |
| On 1st of March 2024 Western Alliance paid $ 0.37 per share dividend to its current shareholders | |
| Latest headline from seekingalpha.com: Western Alliance Q1 2024 Earnings Preview |
Western Alliance Returns Distribution Density
The distribution of Western Alliance's historical returns is an attempt to chart the uncertainty of Western Alliance's future price movements. The chart of the probability distribution of Western Alliance daily returns describes the distribution of returns around its average expected value. We use Western Alliance Bancorporation price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Western Alliance returns is essential to provide solid investment advice for Western Alliance.
| Mean Return | -0.13 | Value At Risk | -5.76 | Potential Upside | 4.47 | Standard Deviation | 2.74 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Western Alliance historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Western Stock 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 originates 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 | Wellington Management Company Llp | 2023-12-31 | 1.9 M | Vaughan Nelson Scarbrgh & Mccullough Lp | 2023-12-31 | 1.7 M | Geode Capital Management, Llc | 2023-12-31 | 1.7 M | Hhg Plc | 2023-12-31 | 1.6 M | Hood River Capital Management Llc | 2023-12-31 | 1.6 M | Fmr Inc | 2023-12-31 | 1.4 M | Smead Capital Management Inc | 2023-12-31 | 1.2 M | Jennison Associates Llc | 2023-12-31 | 1.2 M | 140 Summer Partners Lp | 2023-12-31 | 1.1 M | Vanguard Group Inc | 2023-12-31 | 10 M | Blackrock Inc | 2023-12-31 | 5.6 M |
Western Alliance Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (64.0M) | 2.2B | (2.2B) | 527M | 532.7M | 559.3M | |
| Free Cash Flow | 682.6M | 643.4M | (2.7B) | 2.1B | (442.9M) | (420.8M) | |
| Depreciation | 28.9M | 34.6M | 50M | 74.6M | 86.5M | 90.8M | |
| Other Non Cash Items | 15.7M | 86.6M | (3.6B) | 1.1B | (1.3B) | (1.2B) | |
| Capital Expenditures | 35.1M | 26.8M | 69.4M | 141M | 114.3M | 120.0M | |
| Net Income | 499.2M | 506.6M | 899.2M | 1.1B | 722.4M | 758.5M | |
| End Period Cash Flow | 434.6M | 2.7B | 516.4M | 1.0B | 1.6B | 1.7B | |
| Investments | (3.5B) | (7.3B) | (14.6B) | (13.0B) | 211.9M | 222.5M | |
| Net Borrowings | (496.7M) | 151.2M | (1.2B) | 5.4B | 6.2B | 6.5B | |
| Change To Netincome | 35.3M | 118.7M | 98.5M | 39.3M | 45.2M | 55.2M |
Western Alliance Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Western Alliance or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Western Alliance's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Western stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.22 | |
β | Beta against NYSE Composite | 1.79 | |
σ | Overall volatility | 2.80 | |
Ir | Information ratio | -0.07 |
Western Alliance Volatility Alert
Western Alliance Bancorporation exhibits very low volatility with skewness of -0.01 and kurtosis of 0.94. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Western Alliance's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Western Alliance's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Western Alliance Implied Volatility
Western Alliance's implied volatility exposes the market's sentiment of Western Alliance Bancorporation stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Western Alliance's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Western Alliance stock will not fluctuate a lot when Western Alliance's options are near their expiration.
Western Alliance Fundamentals Vs Peers
Comparing Western Alliance's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Western Alliance's direct or indirect competition across all of the common fundamentals between Western Alliance and the related equities. This way, we can detect undervalued stocks with similar characteristics as Western Alliance or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Western Alliance's fundamental indicators could also be used in its relative valuation, which is a method of valuing Western Alliance by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Western Alliance to competition |
| Fundamentals | Western Alliance | Peer Average |
| Return On Equity | 0.13 | -0.31 |
| Return On Asset | 0.0104 | -0.14 |
| Profit Margin | 0.28 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 12.86 B | 16.62 B |
| Shares Outstanding | 110.18 M | 571.82 M |
| Shares Owned By Insiders | 1.60 % | 10.09 % |
| Shares Owned By Institutions | 82.21 % | 39.21 % |
| Number Of Shares Shorted | 5.02 M | 4.71 M |
| Price To Earning | 11.32 X | 28.72 X |
| Price To Book | 1.08 X | 9.51 X |
| Price To Sales | 2.44 X | 11.42 X |
| Revenue | 4.33 B | 9.43 B |
| Gross Profit | 2.47 B | 27.38 B |
| EBITDA | 86.5 M | 3.9 B |
| Net Income | 722.4 M | 570.98 M |
| Cash And Equivalents | 1.61 B | 2.7 B |
| Cash Per Share | 14.91 X | 5.01 X |
| Total Debt | 8.3 B | 5.32 B |
| Debt To Equity | 0.23 % | 48.70 % |
| Book Value Per Share | 53.37 X | 1.93 K |
| Cash Flow From Operations | (328.6 M) | 971.22 M |
| Short Ratio | 3.43 X | 4.00 X |
| Earnings Per Share | 6.54 X | 3.12 X |
| Price To Earnings To Growth | 1.84 X | 4.89 X |
| Target Price | 76.15 | |
| Number Of Employees | 3.26 K | 18.84 K |
| Beta | 1.45 | -0.15 |
| Market Capitalization | 6.09 B | 19.03 B |
| Total Asset | 70.86 B | 29.47 B |
| Retained Earnings | 4.21 B | 9.33 B |
| Annual Yield | 0.03 % | |
| Net Asset | 70.86 B |
Note: Disposition of 285 shares by Dale Gibbons of Western Alliance at 57.98 subject to Rule 16b-3 [view details]
Western Alliance Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Western . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Western Alliance Buy or Sell Advice
When is the right time to buy or sell Western Alliance Bancorporation? Buying financial instruments such as Western Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Total Stockholder Equity | 5.0B | 5.4B | 6.1B | 6.4B | Total Assets | 56.0B | 67.7B | 70.9B | 74.4B |
Use Investing Ideas to Build Portfolios
In addition to having Western Alliance in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies providing management services to businesses. The Management theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Check out Western Alliance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Western Alliance Ban information on this page should be used as a complementary analysis to other Western Alliance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Complementary Tools for Western Stock analysis
When running Western Alliance's price analysis, check to measure Western Alliance's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Western Alliance is operating at the current time. Most of Western Alliance's value examination focuses on studying past and present price action to predict the probability of Western Alliance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Alliance's price. Additionally, you may evaluate how the addition of Western Alliance to your portfolios can decrease your overall portfolio volatility.
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Is Western Alliance's industry 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 (0.50) | Dividend Share 1.45 | Earnings Share 6.54 | Revenue Per Share 23.61 | Quarterly Revenue Growth (0.04) |
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.
Please note, there is a significant difference between Western Alliance's value and its price as these two are different measures arrived at by different 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.