Piper Sandler Maintains Westamerica Bancorporation (WABC) Neutral Recommendation

Fintel reports that on October 20, 2023, Piper Sandler maintained coverage of Westamerica Bancorporation (NASDAQ:WABC) with a Neutral recommendation.

Analyst Price Forecast Suggests 18.37% Upside

As of October 5, 2023, the average one-year price target for Westamerica Bancorporation is 54.06. The forecasts range from a low of 46.46 to a high of $64.05. The average price target represents an increase of 18.37% from its latest reported closing price of 45.67.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Westamerica Bancorporation is 340MM, an increase of 9.01%. The projected annual non-GAAP EPS is 6.10.

Westamerica Bancorporation Declares $0.44 Dividend

On July 27, 2023 the company declared a regular quarterly dividend of $0.44 per share ($1.76 annualized). Shareholders of record as of August 7, 2023 received the payment on August 18, 2023. Previously, the company paid $0.42 per share.

At the current share price of $45.67 / share, the stock's dividend yield is 3.85%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.92%, the lowest has been 2.41%, and the highest has been 4.45%. The standard deviation of yields is 0.44 (n=235).

The current dividend yield is 2.11 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.30. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.07%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 476 funds or institutions reporting positions in Westamerica Bancorporation. This is a decrease of 15 owner(s) or 3.05% in the last quarter. Average portfolio weight of all funds dedicated to WABC is 0.11%, a decrease of 1.46%. Total shares owned by institutions decreased in the last three months by 2.01% to 22,500K shares. The put/call ratio of WABC is 0.09, indicating a bullish outlook.

What are Other Shareholders Doing?

IJR - iShares Core S&P Small-Cap ETF holds 1,859K shares representing 6.97% ownership of the company. In it's prior filing, the firm reported owning 1,930K shares, representing a decrease of 3.83%. The firm decreased its portfolio allocation in WABC by 19.36% over the last quarter.

American Century Companies holds 992K shares representing 3.72% ownership of the company. In it's prior filing, the firm reported owning 953K shares, representing an increase of 3.91%. The firm decreased its portfolio allocation in WABC by 13.89% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 792K shares representing 2.97% ownership of the company. No change in the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 688K shares representing 2.58% ownership of the company. In it's prior filing, the firm reported owning 671K shares, representing an increase of 2.53%. The firm decreased its portfolio allocation in WABC by 15.61% over the last quarter.

ACMVX - Mid Cap Value Fund Investor Class holds 680K shares representing 2.55% ownership of the company. In it's prior filing, the firm reported owning 682K shares, representing a decrease of 0.34%. The firm decreased its portfolio allocation in WABC by 14.14% over the last quarter.

Westamerica Bancorporation Background Information
(This description is provided by the company.)

Westamerica Bancorporation is the holding company for Westamerica Bank and Bank of Lake County. The Banks provide a full range of services to individual and corporate customers in northern and central California. The Company's other subsidiaries finance accounts receivable and inventory lines of credit and term business loans, as well as provides data processing services to the Company.

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This story originally appeared on Fintel.

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