Many stocks have been testing new highs in 2020, and one of the most notable is PacWest Bancorp (PACW). Currently, PACW is trading at $24.73 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $22.05.
To add more color to this target, the company’s high over the last year is $40.14 and the low is $13.84. Over the last 52 weeks, PACW is down -38.39% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PACW reported a profit of $249.75 million. PacWest Bancorp also saw revenues increase to $291.33 million. In addition, PACW has free cash flow of $111.27 million as of 03-2020.
About PacWest Bancorp
If readers are unfamiliar, PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services. The company accepts demand, money market, and time deposits. It also provides real estate loans to professional developers and real estate investors for the acquisition, refinancing, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the start-up operations of entrepreneurial companies; and equipment-secured loans and leases. In addition, the company offers consumer loans comprising personal loans, auto loans, home equity lines of credit, revolving lines of credit, and other loans. Further, it provides international banking and multi-state deposit services; money market sweep products; investment advisory and asset management services; treasury and cash management services; telephone banking, and online and mobile banking services; and foreign exchange and ATM services. The company offers its products and services to small and mid-sized companies, entrepreneurial businesses and their venture capital, private equity investors, professionals, and other individuals. As of January 31, 2019, it had 74 full-service branches located throughout the state of California; and 1 branch in Durham, North Carolina. The company was formerly known as First Community Bancorp and changed its name to PacWest Bancorp in April 2008. PacWest Bancorp was founded in 1999 and is headquartered in Beverly Hills, California.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PACW has a short ratio of 2.02 and outstanding shares of 117.28M.
PACW has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.77 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -9.24. Investors should also keep an eye on sector updates as PACW has historically followed its peers on positive news.
All told, PacWest Bancorp PACW has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PACW represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
PacWest Bancorp PACW is now commanding a market cap of 2.90B and a float of 114.58M. PACW is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PACW stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in PACW, either long or short, and we have not been compensated for this article.