Western Alliance (WAL.US) reported that its deposits from Q1 increased by $2 billion as of May 12, easing concerns around regional banks. As a result, along with Western Alliance stock, the shares of other regional institutions rebounded today, including New York Bancorp (NYCB.US) and Pacwest Bancorp (PACW.US), which has seen massive declines recently.
In addition, Bank of America renewed analyst coverage for Western Alliance issuing a 'Buy' recommendation with a target price of $42. Reuters also reported that deposit flows at U.S. banks rose to $17.16 trillion in the week ended May 3. This marked the first increase in four weeks, according to Fed data. Stabilizing depositor behavior is fueling Wall Street's hopes around the resolution of the banking crisis.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
The KBW Regional Banking Index is trying to rebound today. Source: Bloomberg
Western Alliance shares are gaining nearly 10%. They have erased almost all of the gains from 2020 to 2021 and are trading at levels after the Covidian crash. The SMA200 average may be the main resistance; the bulls are still nearly 40% short of it. Source: xStation5
