East West Bancorp (NASDAQ:EWBC) Announces Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• East West Bancorp reported quarterly EPS of $2.63, beating analyst expectations by $0.02. The company also posted a strong 16.00% return on equity and a 29.59% net margin.
• The stock was down 0.4% in trading after the announcement, slipping to $133.40 despite volume running slightly above average. EWBC currently trades near its 52-week high of $136.24.
• Analysts remain broadly positive, with several firms recently raising price targets; MarketBeat shows an average rating of Moderate Buy and an average target price of $138.31.

East West Bancorp (NASDAQ:EWBC - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $2.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.02, FiscalAI reports. East West Bancorp had a return on equity of 16.00% and a net margin of 29.59%.

East West Bancorp Trading Down 0.4%

Shares of NASDAQ:EWBC traded down $0.52 during midday trading on Tuesday, hitting $133.40. 1,109,168 shares of the stock traded hands, compared to its average volume of 1,045,274. The stock has a market capitalization of $18.28 billion, a PE ratio of 13.33, a P/E/G ratio of 1.55 and a beta of 0.94. The business's 50 day moving average is $127.24 and its two-hundred day moving average is $119.06. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.34. East West Bancorp has a one year low of $92.67 and a one year high of $136.24.

Analyst Ratings Changes

EWBC has been the subject of a number of research reports. Barclays upped their price objective on shares of East West Bancorp from $142.00 to $150.00 and gave the company an "overweight" rating in a research note on Tuesday, July 7th. Cantor Fitzgerald upped their price target on shares of East West Bancorp from $137.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, July 15th. Truist Financial raised their price objective on East West Bancorp from $128.00 to $136.00 and gave the company a "hold" rating in a research note on Friday, July 10th. Wells Fargo & Company lifted their price objective on East West Bancorp from $125.00 to $140.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. Finally, Citigroup increased their target price on East West Bancorp from $145.00 to $154.00 and gave the company a "buy" rating in a report on Thursday, June 25th. Ten investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $138.31.

Insiders Place Their Bets

In related news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the business's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $123.50, for a total transaction of $1,235,000.00. Following the transaction, the insider owned 46,974 shares in the company, valued at $5,801,289. The trade was a 17.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Irene H. Oh sold 800 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $133.19, for a total value of $106,552.00. Following the completion of the sale, the insider owned 84,698 shares of the company's stock, valued at approximately $11,280,926.62. This trade represents a 0.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 54,311 shares of company stock valued at $6,784,711 over the last three months. Company insiders own 0.94% of the company's stock.

Institutional Trading of East West Bancorp

Large investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD raised its position in shares of East West Bancorp by 281.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,607,314 shares of the financial services provider's stock worth $180,647,000 after purchasing an additional 1,185,781 shares during the last quarter. Boston Partners grew its position in East West Bancorp by 19.6% during the 3rd quarter. Boston Partners now owns 3,874,737 shares of the financial services provider's stock valued at $412,464,000 after purchasing an additional 633,649 shares during the last quarter. AQR Capital Management LLC increased its stake in East West Bancorp by 61.9% during the 2nd quarter. AQR Capital Management LLC now owns 1,418,174 shares of the financial services provider's stock valued at $143,207,000 after purchasing an additional 542,149 shares in the last quarter. Bank of America Corp DE raised its holdings in East West Bancorp by 23.6% in the second quarter. Bank of America Corp DE now owns 2,051,360 shares of the financial services provider's stock worth $207,146,000 after buying an additional 391,059 shares during the last quarter. Finally, Schroder Investment Management Group raised its holdings in East West Bancorp by 9.4% in the fourth quarter. Schroder Investment Management Group now owns 3,713,679 shares of the financial services provider's stock worth $423,619,000 after buying an additional 318,303 shares during the last quarter. Institutional investors own 89.53% of the company's stock.

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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