WaFd (WAFD, Financial) experienced a significant jump in its stock price, rising by 9% on Monday after the release of strong first-quarter financial results. The company reported a net interest income of $161 million, up from $155 million in the same quarter last year. Additionally, the net interest margin improved to 2.55%, compared to 2.39% previously.
The positive financial results are accompanied by strategic shifts within the company. WaFd has redirected its focus towards business banking, resulting in the origination of 382 new small business loans, a stark increase from none in the previous quarter. Merchant processing referrals also saw a substantial increase of 125% on a linked-quarter basis. Furthermore, WaFd's insurance subsidiary posted a 53% rise in profits year over year.
In an effort to bolster its Small Business Administration (SBA) lending capabilities, WaFd has hired two former executives from the SBA. This move is part of a broader strategy to shift towards higher margin business lines, a transformation the company acknowledges will unfold over several years.
In recognition of its efforts, WaFd was ranked as the second-best bank for customer service in the Pacific Northwest by JD Power, highlighting the company's commitment to its clientele.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for WaFd Inc (WAFD, Financial) is $30.25 with a high estimate of $32.00 and a low estimate of $29.00. The average target implies an upside of 12.37% from the current price of $26.92. More detailed estimate data can be found on the WaFd Inc (WAFD) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, WaFd Inc's (WAFD, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for WaFd Inc (WAFD, Financial) in one year is $26.41, suggesting a downside of 1.89% from the current price of $26.92. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the WaFd Inc (WAFD) Summary page.
