Shares of bank holding company PacWest Bancorp (NASDAQ:PACW) are nosediving today after the company pledged a further $5.1 billion of its loans with the Federal Reserve Bank (FRB) for an additional borrowing capacity of $3.9 billion.
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The pledging of loans under the discount window borrowing facility now takes immediately available liquidity for PacWest to $15 billion. Furthermore, PacWest has seen a drop of 9.5% in deposits during the week ending May 5.
Today’s price decline comes fresh after a short-lived rally in regional bank stocks earlier this week even as challenges in the banking sector continue to persist.
Overall, the Street has a $17.17 consensus price target on PacWest alongside a Hold consensus rating. Shares of the company are down nearly 29% at the time of publishing today while short interest in the stock still remains at nearly 17%.
Other banking names including Western Alliance Bancorp (WAL), Comerica (CMA), and Zions Bancorp. (ZION) were mixed at the time of writing
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