Home Sectors Financial Services Stock Under Review: PacWest Bancorp (NASDAQ: PACW)

Stock Under Review: PacWest Bancorp (NASDAQ: PACW)

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PacWest Bancorp is in the banking industry and financial services sector. The company CEO is Matthew P. Wagner. PacWest Bancorp is a bank holding company. It provides commercial banking services, including real estate, construction, and commercial loans.

Previous Intraday Trading Performance:

The PACW stock showed a previous change of -1.36% with an open at 45.56 and a close of 44.37. It reached an intraday high of 45.56 and a low of 43.70.

SeekingAlpha:  PacWest Bancorp 2018 Q3 – Results – Earnings Call Slides

Liquidity:

The stock has a market cap of $5.5b with 124.0m shares outstanding, of which the float is 121.7m shares. Trading volume reached 2,364,200 shares compared to its average volume of 1,092,215 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, PacWest Bancorp shares returned -6.39% and in the past 30 trading days it returned -12.83%. Over three months, it changed -8.85%. In one year it has changed -3.65% and within that year its 52-week high was 55.86 and its 52-week low was 43.61. PACW stock is 1.74% above its 52 Week Low.

Our calculations show a 200 day moving average of 50.52 and a 50 day moving average of 49.51. Currently PACW stock is trading -12.18% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  PacWest Bancorp -2% post Q3 results

Earnings:

The last annual fiscal EPS for the company was reported at 2.92 that ended on 31st of December 2017, which according to the previous close, that is a PE of 15.20. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.93. The TTM EPS is 3.36, which comes to a TTM PE of 13.21. Historically, the PE high was 46.90 and the PE low was 10.00. If the stock reached its PE low, that would represent a price of 33.59, which is a decrease of -24.30%.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.93 (estimated)
06-30-2018:  0.92
03-31-2018:  0.93
12-31-2017:  0.67

The dividend per share is currently 2.40, which is a dividend yield of 5.41%. PACW stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 33.88, which means it may be overvalued by -30.95%

Indicators to Watch:

Based on the latest filings, there is 91.80% of institutional ownership. Short-interest is 3,773,960, which is 3.04% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.90. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.39

SeekingAlpha:  PacWest Bancorp beats by $0.02, misses on revenue

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.79%, return on assets is 1.76%, profit margin is 33.37%, price-to-sales is 5.83 and price-to-book is 1.17.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.