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Insiders Invest in PacWest Bancorp

- By Kyle Ferguson

PacWest Bancorp (PACW) insiders invested in a combined 4,572 shares on April 19.

Matthew Wagner, the company's president, CEO and director, purchased 2,072 shares for $47.75 per share. He now owns 591,037 total shares of the company.

Patrick J. Rusnak , chief financial officer and executive vice president, bought 2,000 shares for $47.75 per share. He now owns 81,349 total shares.

Donald Daniel Destino , executive vice president of investor relations and corporate development, purchased 500 shares for $47.92 per share. He now owns 11,425 total shares.


Headquartered in Beverly Hills, California, PacWest is a bank holding company for Pacific Western Bank.

The company is focused on relationship-based business banking to small, middle-market and venture-backed businesses.

As of Dec. 31, 2016, the bank offered a range of loan and deposit products and services through its 74 branches.

The company provides commercial banking services, including real estate, construction and commercial loans and comprehensive deposit and treasury management services to small and medium-sized businesses.

PacWest has a market cap of $6.5 billion, a price-earnings (P/E) ratio of 17.35, an enterprise value of $6.93 billion, a price-book (P/B) ratio of 1.29, a price-sales (P/S) ratio of 5.47 and a dividend yield of 4.09%.

According to GuruFocus, the company has a 6 of 10 financial strength rating with a cash-debt ratio of 0.33 and an equity-asset ratio of 0.21. It has an interest coverage ratio of 9.75, which ranks above 90% of other companies in the Global Banks- Regional - U.S. industry. The company's Beneish M-Score of -2.43 indicates it is not a manipulator of its financial statements.

The company has a 5 of 10 profitability and growth rating. It has an operating margin of 50.45%, a net margin of 32.04%, a return on assets (ROA) of 1.59% and a three-year EBITDA growth rate of 24.40%, ranking it above 84% of the 1,256 companies in its industry.

Over the past five years, PacWest has averaged a 48.86% increase in revenue, a 106.71% increase in net income, a 17.61% increase in earnings per share and a 72.22% increase in cash flow.

Over the previous year, PacWest's stock price has gained an estimated 21%.

Gurus Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) established positions in the company during the fourth quarter of 2016. Since then, the stock price has gained an estimated 1%.

Below is a Peter Lynch chart that shows the company is trading above its intrinsic value.

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.