Why Western Alliance Bancorp Stock Surged 42% in July

Western Alliance Bancorporation (NYSE: WAL) ran hot in July, as the stock price rose 42% in the month, according to S&P Global Market Intelligence. Western Alliance is still down about 11.8% as of Aug. 7 but has bounced back to almost $53 per share after falling to $18 per share in early May. 

It outperformed the markets, as the S 500 was up 3.2%, the Dow Jones Industrial Average gained 3.4%, and the Nasdaq Composite jumped 4.1% in July.

Western Alliance Bancorporation was hit as hard as just about anyone after the banking meltdown in March that ultimately brought down three banks. It was more about panic selling than anything else, as Western Alliance Bank had some exposure to technology start-ups and venture capital investors, but a relatively small percentage. But deposit outflows soon stabilized, as the bank has a diversified deposit base, and liquidity remained strong, with a common equity tier 1 (CET1) ratio of 7.9% after the first quarter.

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Source Fool.com