East West Bancorp, Inc. (NASDAQ:EWBC) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• East West Bancorp carries an average analyst rating of “Moderate Buy”, based on coverage from 15 brokerages; 10 analysts rate it a buy and 5 rate it a hold. The average 1-year price target among recent updates is about $133.69.
• The company beat earnings and revenue expectations in its latest quarterly report, posting EPS of $2.57 versus the $2.46 consensus and revenue of $773.75 million versus $767.80 million expected. Revenue rose 11.8% year over year, and the firm reported a net margin of 29.59%.
• There was notable insider selling, including Vice Chairman Douglas Paul Krause selling 10,000 shares and Director Archana Deskus selling 1,800 shares. The stock also recently paid a $0.80 quarterly dividend, equal to a 2.7% yield and $3.20 annualized.

Shares of East West Bancorp, Inc. (NASDAQ:EWBC - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fifteen brokerages that are covering the firm, Marketbeat reports. Five research analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $133.6923.

Several equities analysts have recently weighed in on the stock. Piper Sandler raised their price target on shares of East West Bancorp from $111.00 to $123.00 and gave the stock a "neutral" rating in a research note on Monday, April 27th. Morgan Stanley reduced their target price on shares of East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating for the company in a report on Tuesday, March 31st. UBS Group raised their target price on shares of East West Bancorp from $125.00 to $138.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. DA Davidson raised their target price on shares of East West Bancorp from $135.00 to $140.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $133.00 target price on shares of East West Bancorp in a research report on Wednesday, April 22nd.

Insider Activity

In other news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the firm's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $123.50, for a total value of $1,235,000.00. Following the completion of the transaction, the insider owned 46,974 shares in the company, valued at $5,801,289. This trade represents a 17.55% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Archana Deskus sold 1,800 shares of the firm's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $125.55, for a total transaction of $225,990.00. Following the completion of the transaction, the director directly owned 13,231 shares of the company's stock, valued at $1,661,152.05. This represents a 11.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 41,800 shares of company stock worth $5,165,690 in the last quarter. Corporate insiders own 0.94% of the company's stock.

Hedge Funds Weigh In On East West Bancorp

Hedge funds and other institutional investors have recently made changes to their positions in the company. Foster Dykema Cabot & Partners LLC bought a new position in shares of East West Bancorp in the third quarter valued at $26,000. Atlantic Union Bankshares Corp bought a new position in shares of East West Bancorp in the fourth quarter valued at $31,000. Kelleher Financial Advisors bought a new position in shares of East West Bancorp in the third quarter valued at $31,000. Signaturefd LLC grew its stake in shares of East West Bancorp by 115.0% in the fourth quarter. Signaturefd LLC now owns 344 shares of the financial services provider's stock valued at $39,000 after buying an additional 184 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB grew its stake in shares of East West Bancorp by 44.7% in the third quarter. Wilmington Savings Fund Society FSB now owns 366 shares of the financial services provider's stock valued at $39,000 after buying an additional 113 shares in the last quarter. 89.53% of the stock is owned by institutional investors.

East West Bancorp Stock Performance

Shares of EWBC stock opened at $120.67 on Tuesday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.88 and a current ratio of 0.88. The company has a market capitalization of $16.53 billion, a P/E ratio of 12.05, a price-to-earnings-growth ratio of 1.50 and a beta of 0.97. The company's 50 day moving average price is $117.55 and its two-hundred day moving average price is $114.15. East West Bancorp has a 52 week low of $88.97 and a 52 week high of $127.51.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last announced its earnings results on Tuesday, April 21st. The financial services provider reported $2.57 EPS for the quarter, topping the consensus estimate of $2.46 by $0.11. The firm had revenue of $773.75 million for the quarter, compared to the consensus estimate of $767.80 million. East West Bancorp had a net margin of 29.59% and a return on equity of 16.00%. The business's quarterly revenue was up 11.8% on a year-over-year basis. During the same period last year, the company posted $2.08 EPS. On average, analysts expect that East West Bancorp will post 10.6 earnings per share for the current fiscal year.

East West Bancorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, May 18th. Stockholders of record on Monday, May 4th were issued a $0.80 dividend. The ex-dividend date was Monday, May 4th. This represents a $3.20 annualized dividend and a dividend yield of 2.7%. East West Bancorp's dividend payout ratio (DPR) is presently 31.97%.

East West Bancorp Company Profile

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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