Upwards Momentum Continues for Most Bank Stocks
In premarket trades on Thursday, PacWest Bancorp stock saw a 3% increase, maintaining the upward momentum seen in most bank stocks.
However, KeyCorp KEY stock was an exception, falling by 1.4% as its net income and revenue fell short of Wall Street estimates. Despite this, KeyCorp experienced growth in deposits, with an increase of $1 billion during the quarter.
KeyCorp’s second-quarter profit declined to $250 million, or 27 cents a share, compared to $504 million, or 54 cents a share in the year-ago quarter. The results included an allocation of 9 cents a share to build up allowances.
Analysts had anticipated earnings of 32 cents a share, according to estimates compiled by FactSet.
Additionally, the revenue dropped by 11% to $1.6 billion, below the analyst target of $1.62 billion.
Meanwhile, Western Alliance Bancorp. WAL saw a 1.3% increase.
Hovde Group Analysts Reiterate High-Conviction Outperform Rating on Western Alliance Bancorp
Hovde Group analysts have reaffirmed their high-conviction outperform rating on Western Alliance Bancorp stock and raised their price target to $65 a share by increasing it by $5. In a research note, the analysts stated that “Following a remarkably strong deposit growth quarter, it is clear that the market has found confidence in WAL’s balance sheet and liquidity playbook.”
PacWest Bancorp PACW, +11.30% rose by 3% in premarket trades and is expected to provide its second-quarter financial update on July 25.
Raymond James Upgrades US Bancorp to Market Perform
Following second-quarter results that included lower revenue and net interest income guidance, Raymond James has upgraded US Bancorp USB, +6.46% to market perform from underperform. The analysts at Raymond James believe that the risk of future negative revenue revision guidance for USB is not significantly different from that of its peers.
In premarket trades, U.S. Bancorp stock increased by 0.8%.