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

Key Points

• Wall Street Zen downgraded East West Bancorp from hold to sell, even as the broader analyst community remains more constructive on the stock.
• The company’s recent quarter beat expectations, with EPS of $2.57 versus the $2.46 consensus and revenue up 11.8% year over year to $773.75 million.
• Despite the strong results, there has been notable insider selling, including transactions by CEO Dominic Ng and insider Irene H. Oh, while institutional investors continue to hold a large majority of shares.

East West Bancorp (NASDAQ:EWBC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

EWBC has been the subject of a number of other research reports. Citigroup lifted their target price on shares of East West Bancorp from $145.00 to $154.00 and gave the stock a "buy" rating in a report on Thursday, June 25th. DA Davidson increased their price target on East West Bancorp from $135.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Truist Financial raised their price target on East West Bancorp from $120.00 to $128.00 and gave the stock a "hold" rating in a research report on Thursday, April 23rd. Barclays decreased their price objective on East West Bancorp from $150.00 to $142.00 and set an "overweight" rating for the company in a research note on Tuesday, April 7th. Finally, TD Cowen upped their price objective on East West Bancorp from $137.00 to $143.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Ten analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $134.62.

East West Bancorp Stock Performance

East West Bancorp stock opened at $129.30 on Friday. The company has a market cap of $17.71 billion, a PE ratio of 12.92, a PEG ratio of 1.56 and a beta of 0.94. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 0.34. East West Bancorp has a 1 year low of $92.67 and a 1 year high of $136.00. The company's 50-day moving average is $125.47 and its two-hundred day moving average is $117.71.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last issued its quarterly 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 company had revenue of $773.75 million during the quarter, compared to analysts' expectations of $767.80 million. East West Bancorp had a net margin of 29.59% and a return on equity of 16.00%. East West Bancorp's revenue was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.08 EPS. Equities analysts anticipate that East West Bancorp will post 10.59 earnings per share for the current year.

Insider Activity at East West Bancorp

In other news, insider Irene H. Oh sold 11,211 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $129.00, for a total value of $1,446,219.00. Following the completion of the transaction, the insider owned 85,998 shares in the company, valued at $11,093,742. This represents a 11.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Dominic Ng sold 30,000 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $123.49, for a total transaction of $3,704,700.00. Following the sale, the chief executive officer directly owned 707,930 shares of the company's stock, valued at $87,422,275.70. This represents a 4.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 54,311 shares of company stock worth $6,784,711. Corporate insiders own 0.94% of the company's stock.

Institutional Trading of East West Bancorp

Several hedge funds and other institutional investors have recently modified their holdings of the company. Foster Dykema Cabot & Partners LLC acquired a new position in shares of East West Bancorp during the third quarter worth about $26,000. Atlantic Union Bankshares Corp acquired a new stake in East West Bancorp in the 4th quarter valued at approximately $31,000. Kelleher Financial Advisors bought a new stake in East West Bancorp in the 3rd quarter valued at approximately $31,000. Signaturefd LLC lifted its stake in East West Bancorp by 115.0% in the 4th quarter. Signaturefd LLC now owns 344 shares of the financial services provider's stock valued at $39,000 after acquiring an additional 184 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB lifted its stake in East West Bancorp by 44.7% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 366 shares of the financial services provider's stock valued at $39,000 after acquiring an additional 113 shares in the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.