PacWest Bancorp (PACW) stock is nearly perfect except the valuation

PacWest Bancorp (NASDAQ: PACW) closed the day trading at $11.37 down -12.87% from the previous closing price of $13.05. In other words, the price has decreased by -$1.68 from its previous closing price. On the day, 61804670 shares were traded. PACW stock price reached its highest trading level at $12.28 during the session, while it also had its lowest trading level at $9.88.

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For a better understanding of PACW, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 0.66 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 3.85. In the meantime, Its Debt-to-Equity ratio is 0.36 whereas as Long-Term Debt/Eq ratio is at 0.36.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, DA Davidson on March 13, 2023, Upgraded its rating to Buy and sets its target price to $29 from $31 previously.

On December 15, 2022, Wells Fargo Downgraded its rating to Equal Weight which previously was Overweight and also lowered its target price recommendation from $32 to $26.

Truist Downgraded its Buy to Hold on December 09, 2022, while the target price for the stock was maintained at $26.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Mar 10 when EGGEMEYER JOHN M III bought 25,000 shares for $15.33 per share. The transaction valued at 383,250 led to the insider holds 28,500 shares of the business.

WAGNER MATTHEW P bought 13,885 shares of PACW for $293,251 on Mar 10. The EXECUTIVE CHAIRMAN now owns 33,885 shares after completing the transaction at $21.12 per share. On Mar 10, another insider, BLAKE CHRISTOPHER D, who serves as the PRES. & CEO, COMMUNITY BANKING of the company, bought 6,660 shares for $15.74 each. As a result, the insider paid 104,828 and bolstered with 84,779 shares of the company.

Valuation Measures:

As of this moment, PacWest’s Price-to-Earnings (P/E) ratio for their current fiscal year is 3.37, and their Forward P/E ratio for the next fiscal year is 3.13. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.34. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.39 while its Price-to-Book (P/B) ratio in mrq is 0.39.

Stock Price History:

Over the past 52 weeks, PACW has reached a high of $46.84, while it has fallen to a 52-week low of $5.00. The 50-Day Moving Average of the stock is 25.17, while the 200-Day Moving Average is calculated to be 25.86.

Shares Statistics:

Over the past 3-months, PACW traded about 4.49M shares per day on average, while over the past 10 days, PACW traded about 25.81M shares per day. A total of 117.81M shares are outstanding, with a floating share count of 115.67M. Insiders hold about 1.10% of the company’s shares, while institutions hold 95.30% stake in the company. Shares short for PACW as of Jan 12, 2023 were 5.05M with a Short Ratio of 4.14M, compared to 4.75M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.20% and a Short% of Float of 4.82%.

Dividends & Splits

PACW’s forward annual dividend rate is 1.00, up from 1.00 a year ago. Against a Trailing Annual Dividend Yield of 7.66%, it implies a Forward Annual Dividend Yield of 3.46%. The stock’s 5-year Average Dividend Yield is 5.23.

Earnings Estimates

Current recommendations for the stock of the company come from 10 analysts. On average, analysts expect EPS of $0.81 for the current quarter, with a high estimate of $0.89 and a low estimate of $0.71, while EPS last year was $1.01. The consensus estimate for the next quarter is $0.82, with high estimates of $0.89 and low estimates of $0.72.

Analysts are recommending an EPS of between $3.7 and $2.95 for the fiscal current year, implying an average EPS of $3.39. EPS for the following year is $3.58, with 10 analysts recommending between $4.1 and $3.1.

Revenue Estimates

8 analysts predict $341.62M in revenue for the current quarter. It ranges from a high estimate of $348M to a low estimate of $327.7M. As of the current estimate, PacWest Bancorp’s year-ago sales were $329.54M, an estimated increase of 3.70% from the year-ago figure. For the next quarter, 8 analysts are estimating revenue of $343.57M, a decrease of -4.10% less than the figure of $3.70% in the same quarter last year. There is a high estimate of $353M for the next quarter, whereas the lowest estimate is $330.6M.

A total of 8 analysts have provided revenue estimates for PACW’s current fiscal year. The highest revenue estimate was $1.42B, while the lowest revenue estimate was $1.37B, resulting in an average revenue estimate of $1.39B. In the same quarter a year ago, actual revenue was $1.37B, up 2.10% from the average estimate. Based on 8 analysts’ estimates, the company’s revenue will be $1.46B in the next fiscal year. The high estimate is $1.51B and the low estimate is $1.37B. The average revenue growth estimate for next year is up 4.50% from the average revenue estimate for this year.