DA Davidson Reduces Earnings Estimates for East West Bancorp

Key Points

• DA Davidson has reduced its earnings estimates for East West Bancorp for FY2025 to $9.08 per share, slightly down from the previous estimate of $9.12.
• DA Davidson maintains a "Buy" rating on East West Bancorp with a price target of $125.00, while the consensus estimate for the company's current annual earnings is $8.85 per share.
• East West Bancorp recently announced a quarterly dividend of $0.60 per share, reflecting an annualized dividend yield of 2.3% and a payout ratio of 28.04%.

East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) - Equities research analysts at DA Davidson lowered their FY2025 earnings estimates for East West Bancorp in a research report issued to clients and investors on Monday, September 29th. DA Davidson analyst G. Tenner now expects that the financial services provider will earn $9.08 per share for the year, down from their prior forecast of $9.12. DA Davidson has a "Buy" rating and a $125.00 price objective on the stock. The consensus estimate for East West Bancorp's current full-year earnings is $8.85 per share. DA Davidson also issued estimates for East West Bancorp's FY2026 earnings at $9.47 EPS.

Several other research analysts have also issued reports on the stock. Cantor Fitzgerald initiated coverage on shares of East West Bancorp in a research report on Wednesday, September 10th. They issued an "overweight" rating and a $124.00 price target for the company. Piper Sandler increased their price target on shares of East West Bancorp from $100.00 to $104.00 and gave the company a "neutral" rating in a research note on Monday, September 8th. TD Cowen assumed coverage on shares of East West Bancorp in a research note on Thursday, September 25th. They issued a "buy" rating and a $139.00 price objective on the stock. Keefe, Bruyette & Woods raised their price objective on shares of East West Bancorp from $110.00 to $120.00 and gave the company an "outperform" rating in a research note on Wednesday, July 23rd. Finally, Citigroup increased their target price on shares of East West Bancorp from $124.00 to $134.00 and gave the stock a "buy" rating in a report on Monday, September 8th. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $120.53.

East West Bancorp Stock Performance

NASDAQ:EWBC opened at $106.45 on Wednesday. East West Bancorp has a 12-month low of $68.27 and a 12-month high of $113.95. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $14.67 billion, a PE ratio of 12.44, a price-to-earnings-growth ratio of 1.44 and a beta of 0.97. The firm has a 50-day moving average price of $104.58 and a 200 day moving average price of $96.17.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its earnings results on Tuesday, July 22nd. The financial services provider reported $2.28 earnings per share for the quarter, beating the consensus estimate of $2.23 by $0.05. East West Bancorp had a net margin of 26.06% and a return on equity of 15.09%. The business had revenue of $705.00 million during the quarter, compared to analysts' expectations of $702.04 million. During the same quarter last year, the company earned $2.07 earnings per share. The firm's revenue was up 10.3% on a year-over-year basis.

Hedge Funds Weigh In On East West Bancorp

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Invesco Ltd. raised its position in shares of East West Bancorp by 38.5% in the 2nd quarter. Invesco Ltd. now owns 10,683,377 shares of the financial services provider's stock valued at $1,078,807,000 after buying an additional 2,968,716 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in East West Bancorp by 1.8% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 4,819,273 shares of the financial services provider's stock valued at $486,650,000 after acquiring an additional 86,171 shares during the period. First Trust Advisors LP increased its position in East West Bancorp by 3.2% in the 2nd quarter. First Trust Advisors LP now owns 4,294,317 shares of the financial services provider's stock valued at $433,640,000 after acquiring an additional 134,541 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in shares of East West Bancorp by 1.2% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,005,394 shares of the financial services provider's stock valued at $359,525,000 after purchasing an additional 46,717 shares during the last quarter. Finally, Boston Partners boosted its stake in shares of East West Bancorp by 39.6% in the 2nd quarter. Boston Partners now owns 3,241,088 shares of the financial services provider's stock valued at $327,271,000 after purchasing an additional 920,159 shares during the last quarter. 89.53% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at East West Bancorp

In other East West Bancorp news, CEO Dominic Ng sold 40,000 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $103.38, for a total value of $4,135,200.00. Following the completion of the sale, the chief executive officer owned 888,314 shares of the company's stock, valued at $91,833,901.32. The trade was a 4.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Gary Teo sold 6,550 shares of the business's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $106.47, for a total transaction of $697,378.50. Following the completion of the sale, the executive vice president directly owned 12,235 shares of the company's stock, valued at $1,302,660.45. This represents a 34.87% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 70,240 shares of company stock worth $7,379,678. 1.04% of the stock is currently owned by corporate insiders.

East West Bancorp Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Monday, August 4th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Monday, August 4th. This represents a $2.40 annualized dividend and a dividend yield of 2.3%. East West Bancorp's payout ratio is presently 28.04%.

East West Bancorp Company Profile

East West Bancorp, Inc operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other.

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