A wave of positivity swept over the regional banking sector in Wednesday’s trading following a reassuring update from Western Alliance Bancorporation (NYSE:WAL). Shares of the bank jumped 11% at the time of writing after revealing a significant $2 billion deposit increase since the start of Q2. This news was welcomed by investors, who saw it as a sign of stability amidst recent industry upheavals. Jefferies analyst, Casey Haire, lauded the update, noting that Western Alliance’s distance from market turmoil and its attractive risk/reward ratio would likely be well received.
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The good news wasn’t just confined to Western Alliance, as other banks also experienced a boost. PacWest Bancorp (NASDAQ:PACW) saw its stock rise by 9.7%, while shares in Metropolitan Bank Holding (NYSE:MCB) increased by 6.7%.
The larger players in the regional banking arena weren’t left out either. KeyCorp (NYSE:KEY), New York Community Bancorp (NYSE:NYCB), Comerica (NYSE:CMA), Truist Financial (NYSE:TFC), and Huntington Bancshares (NASDAQ:HBAN) all enjoyed share price increases ranging from 3% to 9.64%. It appears that Western Alliance’s strong performance has had a ripple effect across the sector, offering a welcome respite after the market turbulence caused by the March bank failures.
Overall, WAL stock appears to be well-liked by analysts as it has a Strong Buy consensus rating and 55.52% upside potential thanks to its average price target of $54.65.