2023-05-08 14:16:25
In the US stock market on the 8th,PacWest Bancorp was up 30% at one point, leading the rally in US regional bank stocks. The bank said over the weekend that its business was “healthy” and that it would cut its quarterly dividend to 1 cent to accelerate its capitalization plan.
PacWest cuts quarterly dividend to 1 cent, citing banking sector turmoil
this day isWestern Alliance Bancorp and Zions Bancorp also rose. After a big sell-off triggered by concerns over the health of the financial system and the recent bankruptcies of several regional banks, it is picking up. Regional bank stocks continued to be volatile last week, but ended the 5th with a sharp rise centered on Pacwest.
PacWest Stocks Rise 88%, US Regional Bank Stocks Rebound Sharply on Views Oversold
“This dividend cut makes sense and might support the pace of recapitalization,” RBC Capital Markets analyst John Arfstrom said in a note to clients. Pacwest described the bank’s business as “‘fundamentally healthy,’ which can be subject to interpretation but confirms that trends are manageable.”
“A potential meaningful dividend cut would not come as a surprise to investors,” Keefe, Bruyette & Woods (KBW) analyst Christopher McGratty said in a note. All the more so given current stock valuations and companies “in the midst of a strategic shift prioritizing recapitalization,” he added.
Original title:PacWest Jumps to Lead Second-Day Bounce for Regional Bank Stocks(excerpt)
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