Canadian Western Bank: An Analysis of its Stock Performance
As of May 25, 2023, Canadian Western Bank (TSE:CWB) opened at C$24.39 on Thursday, with a 50-day simple moving average of C$24.22 and a two-hundred day simple moving average of C$25.36. The bank has a market capitalization of C$2.35 billion, a PE ratio of 7.17, a P/E/G ratio of 2.95 and a beta of 1.70.
However, in light of recent reports filed by analysts in the financial sector – as well as insider trading activities within the company – there has been much fluctuation in stock prices and conflicting recommendations on whether to buy or hold shares.
CIBC cut CWB’s price target from C$30.00 to C$28.00 on May 16th while Scotiabank reduced its price target from C$29.00 to C$28.00 last February 17th . TD Securities also decreased their price target from C$34.00 to $33 and gave the bank’s stock a “buy” rating last March 3rd . Barclays also released an industry report lowering their price target on CWB’s stocks from $29 to $27 last May 9th . Lastly, CSFB lowered their price objective from C$28 to C26 in a research report released last May16th.
Meanwhile, insider dealings have also taken place within the company with Senior Officer Azfar Karimuddin selling around one thousand shares of its stock at an average price per share of $24.19 for total proceeds amounting to $25,401.
In relation to all other known information regarding CWB reviewed by Bloomberg.com at the time this piece was written CSP had six analysts rate CWB’s shares as “hold,” and four others recommend it as a “buy,” with an average target price of C$30.08.
The company’s last quarterly earnings data, released on March 2nd, outperformed analysts’ predictions by hitting C$1.02 EPS compared to the anticipated C$0.89 EPS. During this period, CWB had revenue of $272.8 million- slightly lower than the projected amount pegged at $275.10 million – making for a return on equity of 9.18% and a net margin of 32.57%.
Given such mixed signals regarding CWB’s developments one can only conclude that while it is something to take cautious note of for potential investors in the medium term, the Canadian Western Bank offers some opportune prospects in the long run especially given its current share price levels leading many traders to strengthen their position on matching hold recommendations made recently on its shares by analysts evaluated by Bloomberg.com .
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Cormark Research Predicts Impressive Q2 2023 Earnings for Canadian Western Bank (TSE:CWB)
The Canadian Western Bank (TSE:CWB) is due for impressive Q2 2023 earnings, according to a research report by Cormark. Analyst L. Persaud predicts that the company will post earnings of $0.79 per share for the quarter, which is higher than their previous estimate of $0.76 per share. This news has captured the attention of investors, who are eagerly anticipating the release of quarterly financial reports.
This positive forecast for Canadian Western Bank comes as no surprise, considering the lender’s robust performance over the past few years. The bank has been posting strong financial gains, and this trend is expected to continue well into next year. The consensus estimate for Canadian Western Bank’s current full-year earnings stands at $3.60 per share, with an anticipated FY2024 earnings estimate of $3.76 EPS.
The Canadian Western Bank recently paid out a quarterly dividend on Thursday, March 23rd to investors who were on record by Thursday, March 9th. According to sources familiar with the matter, Canadian Western Bank’s dividend payout ratio currently sits at an impressive rate of 37.65%, and this dividend payment history is a good indicator of future returns.
Many industry analysts have noted that although banks and other lenders have been hit hard by COVID-19 pandemic-related economic downturns in recent times, Canadian Western Bank did not seem to suffer from similar losses thanks to its unique approach toward diversified lending across various niches giving it an edge over competitors.
The outlook for Canadian Western Bank seems promising going forward as they develop new digital banking initiatives aimed at providing high quality customer service while accommodating more traditional customers through multiple channels like brick-and-mortar branches.
In conclusion, investors should take note of Cormark’s positive Q2 2023 earnings forecast for Canadian Western Bank (TSE:CWB). While future market uncertainties can never be forecasted with absolute certainty; reports such as these provide a solid foundation for investment decisions. Canadian Western Bank’s dividend payout and steady growth should lend itself to generating long-term returns for investors. Keep an eye out for their next earnings report, which is due in Q2 2023.
