PacWest Bancorp (PACW) Declares $0.25 Dividend

PacWest Bancorp said on February 1, 2023 that its board of directors declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of February 14, 2023 will receive the payment on February 28, 2023. Previously, the company paid $0.25 per share.

At the current share price of $29.58 / share, the stock's dividend yield is 3.38%. Looking back five years and taking a sample every week, the average dividend yield has been 4.74%, the lowest has been 2.00%, and the highest has been 16.97%. The standard deviation of yields is 2.23 (n=236).

The current dividend yield is 0.61 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.28. 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 -0.58%.

Analyst Price Forecast Suggests 2.87% Downside

As of February 3, 2023, the average one-year price target for PacWest Bancorp is $28.73. The forecasts range from a low of $25.25 to a high of $34.65. The average price target represents a decrease of 2.87% from its latest reported closing price of $29.58.

The projected annual revenue for PacWest Bancorp is $1,566MM, an increase of 16.77%. The projected annual EPS is $3.95, an increase of 17.03%.

Fund Sentiment

There are 719 funds or institutions reporting positions in PacWest Bancorp. This is a decrease of 67 owner(s) or 8.52%.

Average portfolio weight of all funds dedicated to US:PACW is 0.2128%, a decrease of 13.2366%. Total shares owned by institutions increased in the last three months by 1.80% to 128,454K shares.

What are large shareholders doing?

Cardinal Capital Management holds 4,343,711 shares representing 3.69% ownership of the company. In it's prior filing, the firm reported owning 4,364,161 shares, representing a decrease of 0.47%. The firm decreased its portfolio allocation in PACW by 5.14% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 3,493,059 shares representing 2.97% ownership of the company. In it's prior filing, the firm reported owning 3,459,931 shares, representing an increase of 0.95%. The firm decreased its portfolio allocation in PACW by 10.79% over the last quarter.

IJH - iShares Core S&P Mid-Cap ETF holds 3,435,629 shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 3,377,197 shares, representing an increase of 1.70%. The firm decreased its portfolio allocation in PACW by 13.33% over the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 2,990,432 shares representing 2.54% ownership of the company. In it's prior filing, the firm reported owning 2,965,689 shares, representing an increase of 0.83%. The firm decreased its portfolio allocation in PACW by 10.86% over the last quarter.

Fisher Asset Management holds 2,593,934 shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 1,864,173 shares, representing an increase of 28.13%. The firm increased its portfolio allocation in PACW by 27.43% over the last quarter.

Pacwest Bancorp Background Information
(This description is provided by the company.)

PacWest Bancorp ('PacWest') is a bank holding company with over $29 billion in assets headquartered in Los Angeles, California, with executive offices in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the 'Bank'). The Bank has 70 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. Its Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through its California-based branch offices and Denver, Colorado branch office. It offers additional products and services through its National Lending and Venture Banking groups. National Lending provides asset-based, equipment, and real estate loans and treasury management services to established middle market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial or venture-backed businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States.

This story originally appeared on Fintel.