President-elect Donald Trump returns to the White House and local bank stocks are soaring after his election day victory. Republicans also secured a new majority in the Senate, but the House of Representatives remains chaotic. Nevertheless, developments to date have been largely positive for regional banks. “The narrative for this group could certainly change meaningfully if Republican control increases,” Piper Sandler Managing Director R. Scott Schieffers wrote in a note Wednesday. There is. “The list of burdens that can be alleviated is extensive, from capital requirements (where concerns of punitive increases were already gone anyway), to areas such as 'junk fees' and overdrafts, to M&A,” he said. It seems to be widespread.” In fact, the SPDR S&P Regional Banking ETF (KRE) soared more than 13% on Wednesday on expectations for deregulation and more M&A activity in the sector. CNBC Pro used FactSet data to screen the KRE ETF for stocks with a dividend yield greater than the S&P 500's 1.3%. These stocks must be rated Buy or Overweight by at least 55% of the covering analysts and have at least 15% upside based on their average price target. The data below is based on Tuesday's closing prices. Western Alliance Bancorp was named to the list, with a dividend yield of 1.8% as of Tuesday's close. The stock is expected to rise 44% in 2024, according to FactSet. Roughly 93% of analysts covering the stock rate it a buy or overweight, according to FactSet. Gary Tenner of the Davidson Attorney's Office maintained his buy rating on the company even after the company announced its third-quarter results in October. Earnings per share were $1.80, falling short of the Street's call for $1.89 per share, according to FactSet. Still, net interest income came in at $696.9 million, beating the consensus estimate of $689.1 million, according to Street accounts. “Although our third quarter results were lower than expected and we have lowered our 2025 forecast slightly (2%), we expect positive balance sheet momentum and lower revenue.” [earnings credit rate] Cost of achieving adjusted growth trajectory [net interest income] Tenner said in an Oct. 21 memo. 2024 WAL YTD Mountain Western Alliance Stock Popular also appeared on CNBC Pro's show. The stock's dividend yield was 2.8% as of Tuesday's close. In October, Popular announced its profits. Net interest income was also lower than expected, coming in at $2.16 per share, compared to the Street consensus estimate of $585.1 million, according to FactSet. And he withdrew his hopes for 2025. [overweight] “While our ratings are high, we note that a quarter stabilization may be required before investors can feel more comfortable with updated targets and earnings power,” he said. , also mentioned that it has lowered its price target from $112 to $100. Almost double the company's expectations, BPOP YTD Mountain's 2024 Popular stock rose on CNBC Pro screens as the company announced its third-quarter results last week. Provident posted profit of 36 cents a share, compared with expectations of 47 cents a share, and $183.7 million, compared with the consensus estimate of $187.5 million, according to FactSet. Piper Sandler's Mark Fitzgibbon reiterated his overweight rating on the stock last week, but lowered his 2025 EPS forecast by 5 cents to $2.18. Fitzgibbon added on Oct. 30 that he expects the bank's profitability to “improve steadily from quarter to quarter.” The stock is up more than 21% in 2024, and the dividend yield was 5% as of Tuesday's close. — CNBC's Fred Imbert contributed reporting.
Microsoft shareholders vote against company investing in bitcoin
December 10, 2024
