East West Bancorp (NASDAQ:EWBC) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• East West Bancorp has been downgraded from "hold" to "sell" by Wall Street Zen analysts, marking a significant shift in sentiment for the stock.
• Despite the downgrade, other analysts such as DA Davidson and Citigroup have raised their price targets for East West Bancorp, with an average consensus target price of $114.15.
• Recent insider activity includes CEO Dominic Ng selling 40,000 shares, indicating a 4.31% decrease in his ownership stake in the company.

East West Bancorp (NASDAQ:EWBC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

Several other equities analysts have also weighed in on EWBC. Barclays increased their price target on shares of East West Bancorp from $110.00 to $135.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Truist Financial upped their price target on East West Bancorp from $102.00 to $110.00 and gave the company a "hold" rating in a research report on Friday, July 11th. DA Davidson upped their price objective on shares of East West Bancorp from $115.00 to $125.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Keefe, Bruyette & Woods lifted their target price on shares of East West Bancorp from $110.00 to $120.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 23rd. Finally, Jefferies Financial Group initiated coverage on shares of East West Bancorp in a report on Wednesday, May 21st. They issued a "buy" rating and a $115.00 price objective for the company. One investment analyst has rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $114.15.

East West Bancorp Stock Down 0.7%

Shares of EWBC traded down $0.69 during mid-day trading on Friday, hitting $98.57. 202,236 shares of the company's stock were exchanged, compared to its average volume of 1,041,481. The company has a market cap of $13.58 billion, a PE ratio of 11.51, a P/E/G ratio of 1.36 and a beta of 0.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.89 and a quick ratio of 0.89. The company has a 50-day simple moving average of $100.23 and a 200 day simple moving average of $93.76. East West Bancorp has a 52 week low of $68.27 and a 52 week high of $113.95.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $2.28 EPS for the quarter, beating analysts' consensus estimates of $2.23 by $0.05. East West Bancorp had a return on equity of 15.09% and a net margin of 26.06%. The firm had revenue of $705.00 million for the quarter, compared to analyst estimates of $702.04 million. During the same quarter in the previous year, the company posted $2.07 EPS. The business's revenue was up 10.3% on a year-over-year basis. On average, research analysts forecast that East West Bancorp will post 8.85 earnings per share for the current fiscal year.

Insider Buying and Selling at East West Bancorp

In other East West Bancorp news, EVP Lisa L. Kim sold 2,100 shares of the company's stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $95.04, for a total value of $199,584.00. Following the sale, the executive vice president owned 14,849 shares in the company, valued at approximately $1,411,248.96. This represents a 12.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Dominic Ng sold 40,000 shares of East West Bancorp stock in a transaction on Monday, July 28th. The shares were sold at an average price of $103.38, for a total transaction of $4,135,200.00. Following the completion of the transaction, the chief executive officer directly 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 disclosure for this sale can be found here. Over the last ninety days, insiders sold 82,100 shares of company stock worth $8,191,984. 1.04% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On East West Bancorp

Several hedge funds and other institutional investors have recently added to or reduced their stakes in EWBC. LPL Financial LLC lifted its position in East West Bancorp by 41.0% during the fourth quarter. LPL Financial LLC now owns 45,533 shares of the financial services provider's stock worth $4,360,000 after buying an additional 13,251 shares in the last quarter. JPMorgan Chase & Co. boosted its position in shares of East West Bancorp by 13.2% during the fourth quarter. JPMorgan Chase & Co. now owns 398,199 shares of the financial services provider's stock worth $38,132,000 after buying an additional 46,417 shares during the period. O Shaughnessy Asset Management LLC lifted its holdings in East West Bancorp by 26.1% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 11,943 shares of the financial services provider's stock worth $1,144,000 after buying an additional 2,474 shares in the last quarter. Franklin Resources Inc. raised its position in East West Bancorp by 1.7% in the 4th quarter. Franklin Resources Inc. now owns 43,291 shares of the financial services provider's stock valued at $4,146,000 after purchasing an additional 739 shares in the last quarter. Finally, Prudential PLC grew its stake in shares of East West Bancorp by 15.4% during the fourth quarter. Prudential PLC now owns 13,457 shares of the financial services provider's stock worth $1,289,000 after purchasing an additional 1,792 shares in the last quarter. 89.53% of the stock is owned by hedge funds and other institutional investors.

About East West Bancorp

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.