Pacwest Forum: Community User: Brösianer
Directors. 7 Directors bought for a total of $909,000, including a $293,000 purchase by executive chairman Matthew Wagner CEO. Paul Taylor bought 22,800 shares worth $506,300 COO. Mark Yung bought 3,148 shares worth $48,000 EVP. Christopher Blake and William Black bought 19,660 shares worth $372,200 These purchases are especially notable because most of PacWest’s directors have never bought company shares on the open market. And it goes a long way in reducing fears about the company’s exposure to venture deposits, which make up a third of all deposits. PacWest has also long worried investors with its thin capital cushions. Tier 1 capital stands at 8.7% — barely above the 6% figure required by Basel III rules. And Prior to the SIVB collapse, shares traded at only 0.84x book value. The bank’s sudden 55% plunge changes all that. Suddenly, shares are trading at 0.3x book value, suggesting a 100%-plus upside if PacWest managers can prevent a run on assets. It’s a bet that insiders have made in the $20-$25 range, and one that investors will likely want to follow.
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