Bank of Hawaii (NYSE:BOH) Stock Gets Downgrade from Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods downgraded Bank of Hawaii from “outperform” to “market perform,” assigning a $78 price target, implying 10.46% upside from the prior close.
• Analyst sentiment is broadly cautious: the stock has a consensus “hold” rating from eight analysts, with a consensus target price of $82.20.
• Bank of Hawaii’s latest quarterly results exceeded the prior year but missed estimates, with EPS of $1.49 versus $1.51 expected and revenue of $198.76 million versus $202.59 million expected.

Bank of Hawaii (NYSE:BOH - Get Free Report) was downgraded by research analysts at Keefe, Bruyette & Woods from an "outperform" rating to a "market perform" rating in a research note issued to investors on Tuesday, Marketbeat.com reports. They presently have a $78.00 target price on the bank's stock. Keefe, Bruyette & Woods's target price indicates a potential upside of 10.46% from the company's previous close.

A number of other analysts have also recently commented on BOH. Piper Sandler dropped their price target on shares of Bank of Hawaii from $85.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, October 1st. Stephens cut shares of Bank of Hawaii from an "overweight" rating to an "equal weight" rating and set a $85.00 target price on the stock. in a research note on Thursday, August 6th. Barclays lowered their price objective on Bank of Hawaii from $88.00 to $85.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 28th. DA Davidson upped their target price on Bank of Hawaii from $80.00 to $85.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th. Finally, Weiss Ratings lowered shares of Bank of Hawaii from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, October 19th. One investment analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $82.20.

Bank of Hawaii Stock Performance

Shares of BOH stock opened at $70.61 on Tuesday. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.70 and a quick ratio of 0.70. The company has a market cap of $2.79 billion, a P/E ratio of 13.17, a P/E/G ratio of 0.86 and a beta of 0.72. Bank of Hawaii has a one year low of $62.51 and a one year high of $86.31. The firm has a 50-day moving average of $72.53 and a 200-day moving average of $76.32.

Bank of Hawaii (NYSE:BOH - Get Free Report) last issued its quarterly earnings results on Monday, October 26th. The bank reported $1.49 EPS for the quarter, missing analysts' consensus estimates of $1.51 by ($0.02). The business had revenue of $198.76 million for the quarter, compared to analysts' expectations of $202.59 million. Bank of Hawaii had a net margin of 21.84% and a return on equity of 15.72%. During the same period in the previous year, the business posted $1.20 earnings per share. Equities research analysts forecast that Bank of Hawaii will post 5.88 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Marco Abbruzzese sold 2,441 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $81.59, for a total value of $199,161.19. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 1.97% of the company's stock.

Institutional Investors Weigh In On Bank of Hawaii

A number of hedge funds have recently modified their holdings of BOH. Susquehanna Fundamental Investments LLC increased its stake in Bank of Hawaii by 66.6% in the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 63,217 shares of the bank's stock worth $5,152,000 after buying an additional 25,274 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Bank of Hawaii during the 2nd quarter worth approximately $470,538,000. Legal & General Group Plc bought a new position in shares of Bank of Hawaii in the 2nd quarter valued at about $7,646,000. Deutsche Bank AG purchased a new position in Bank of Hawaii during the second quarter worth $5,111,000. Finally, Corient Private Wealth LP purchased a new stake in shares of Bank of Hawaii in the second quarter valued at $5,230,000. Institutional investors own 82.18% of the company's stock.

Bank of Hawaii News Summary

Here are the key news stories impacting Bank of Hawaii this week:

• Positive Sentiment: Shareholder returns were reinforced. Bank of Hawaii declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a yield of approximately 4%. The dividend is payable December 14 to shareholders of record November 30. Bank of Hawaii declares quarterly dividend
• Positive Sentiment: Buyback capacity increased. The bank added $200 million to its repurchase authorization and plans to buy back approximately $20 million of stock during the fourth quarter, potentially supporting per-share value. Bank of Hawaii buyback authorization
• Positive Sentiment: Some analysts remain constructive. A bullish analysis cited BOH’s dominant Hawaii market position, relatively low funding-cost pressure, 14.4% CET1 capital ratio, conservative real-estate lending and resilient credit quality, arguing that rate trends could provide upside. Bank of Hawaii rate tailwinds analysis
• Neutral Sentiment: Profitability improved year over year. Third-quarter net income rose 20.5% from the prior-year period to $64.3 million, while EPS increased to $1.49 from $1.20. However, EPS was only slightly above the linked quarter, suggesting limited sequential momentum. Bank of Hawaii third-quarter results
• Negative Sentiment: The earnings miss pressured the stock. Third-quarter EPS of $1.49 fell short of consensus estimates near $1.51-$1.52, while revenue of approximately $198.8 million also missed expectations of about $202.6 million. Investors appeared more focused on the disappointing estimates than on the increase in reported profit. Bank of Hawaii misses third-quarter estimates
• Negative Sentiment: Growth concerns remain. Analysts cited stagnating earnings, declining deposits, higher borrowings and modest asset-quality deterioration, along with BOH’s exposure to Hawaii’s concentrated economy and weather-related risks. Bank of Hawaii earnings growth analysis

About Bank of Hawaii

Bank of Hawaii Corporation is the parent company of Bank of Hawaii, a regional financial institution headquartered in Honolulu. Founded in 1897, the bank provides banking and financial services to consumers, businesses, and government entities, with a primary focus on Hawaii and selected Pacific markets.

Its consumer banking business offers deposit accounts, residential and consumer lending, credit cards, online and mobile banking, and other personal financial products. Through its commercial banking operations, Bank of Hawaii provides business loans, commercial real estate financing, treasury management, payments, and deposit services to companies and institutions.

The company also provides wealth management, trust, investment management, and private banking services.

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