East West Bancorp, Inc. (NASDAQ:EWBC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Sixteen analysts give a consensus recommendation of Moderate Buy (11 buys, 5 holds) with an average 1-year price target of $127.36.
• East West beat quarterly estimates—EPS $2.52 vs. $2.48 and revenue $753.8M vs. $745.0M—and raised its quarterly dividend from $0.60 to $0.80 (annualized $3.20, ~2.8% yield).
• Insiders sold about 60,221 shares (~$7.14M) in the past 90 days while institutional investors own roughly 89.53% of the company.

East West Bancorp, Inc. (NASDAQ:EWBC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the sixteen analysts that are currently covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold rating and eleven have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $127.3571.

Several research firms have weighed in on EWBC. Piper Sandler dropped their price objective on shares of East West Bancorp from $116.00 to $111.00 and set a "neutral" rating on the stock in a research note on Thursday, April 2nd. Stephens increased their price target on shares of East West Bancorp from $120.00 to $125.00 and gave the stock an "equal weight" rating in a research note on Monday, January 26th. TD Cowen dropped their price target on shares of East West Bancorp from $141.00 to $140.00 and set a "buy" rating on the stock in a research note on Monday, January 26th. Deutsche Bank Aktiengesellschaft began coverage on shares of East West Bancorp in a research note on Tuesday, December 16th. They set a "buy" rating and a $133.00 price target on the stock. Finally, UBS Group upgraded shares of East West Bancorp from a "neutral" rating to a "buy" rating and set a $125.00 price target on the stock in a research note on Tuesday, April 7th.

East West Bancorp Price Performance

East West Bancorp stock opened at $115.55 on Monday. The firm has a market cap of $15.83 billion, a PE ratio of 12.14, a P/E/G ratio of 1.52 and a beta of 0.90. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.89 and a current ratio of 0.89. The firm's 50 day moving average price is $111.84 and its two-hundred day moving average price is $109.60. East West Bancorp has a twelve month low of $69.02 and a twelve month high of $123.82.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its quarterly earnings data on Thursday, January 22nd. The financial services provider reported $2.52 earnings per share for the quarter, beating the consensus estimate of $2.48 by $0.04. The firm had revenue of $753.79 million for the quarter, compared to analyst estimates of $745.04 million. East West Bancorp had a net margin of 28.36% and a return on equity of 15.72%. During the same quarter in the prior year, the business earned $2.10 EPS. On average, research analysts predict that East West Bancorp will post 8.85 EPS for the current fiscal year.

East West Bancorp Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were paid a dividend of $0.80 per share. This is a positive change from East West Bancorp's previous quarterly dividend of $0.60. The ex-dividend date was Monday, February 2nd. This represents a $3.20 annualized dividend and a dividend yield of 2.8%. East West Bancorp's dividend payout ratio (DPR) is currently 33.61%.

Insider Buying and Selling at East West Bancorp

In other news, Director Jack C. Liu sold 1,421 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $119.00, for a total transaction of $169,099.00. Following the transaction, the director owned 13,553 shares in the company, valued at $1,612,807. This represents a 9.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Molly Campbell sold 1,800 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $122.81, for a total transaction of $221,058.00. Following the transaction, the director owned 5,756 shares in the company, valued at approximately $706,894.36. This trade represents a 23.82% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 60,221 shares of company stock worth $7,139,287. Company insiders own 1.04% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Foster Dykema Cabot & Partners LLC bought a new stake in shares of East West Bancorp during the 3rd quarter worth $26,000. Atlantic Union Bankshares Corp bought a new stake in shares of East West Bancorp during the 4th quarter worth $31,000. Kelleher Financial Advisors bought a new stake in shares of East West Bancorp during the 3rd quarter worth $31,000. Grove Bank & Trust boosted its holdings in shares of East West Bancorp by 82.6% during the 3rd quarter. Grove Bank & Trust now owns 336 shares of the financial services provider's stock worth $36,000 after buying an additional 152 shares during the period. Finally, Signaturefd LLC boosted its holdings in shares of East West Bancorp by 115.0% during the 4th quarter. Signaturefd LLC now owns 344 shares of the financial services provider's stock worth $39,000 after buying an additional 184 shares during the period. Institutional investors and hedge funds own 89.53% of the company's stock.

About East West Bancorp

East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.

Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.

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