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East West Bancorp (NASDAQ:EWBC) Stock Price Expected to Rise, DA Davidson Analyst Says

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Key Points

  • DA Davidson raised its price target on East West Bancorp to $140 (from $135) and maintained a "buy" rating, implying roughly a 15.3% upside from the prior close.
  • Q1 results beat estimates — EPS of $2.57 vs. $2.46 and revenue of $773.8M vs. $767.8M, with net income up ~23% and record loans and deposits supporting future net interest income.
  • Analyst sentiment is mixed despite a "Moderate Buy" consensus (average target ~$129.86): several firms cut targets while others reaffirmed or raised them, and insiders were net sellers even as institutional ownership stands near 89.5%.
  • MarketBeat previews the top five stocks to own by May 1st.

East West Bancorp (NASDAQ:EWBC - Get Free Report) had its price target raised by stock analysts at DA Davidson from $135.00 to $140.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. DA Davidson's price objective indicates a potential upside of 15.27% from the company's previous close.

Other research analysts have also recently issued reports about the company. Morgan Stanley lowered their price objective on East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 31st. Piper Sandler lowered their price objective on East West Bancorp from $116.00 to $111.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $133.00 price objective on shares of East West Bancorp in a research report on Wednesday. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of East West Bancorp in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods upped their price objective on East West Bancorp from $131.00 to $135.00 and gave the stock an "outperform" rating in a research report on Friday, January 23rd. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, East West Bancorp presently has a consensus rating of "Moderate Buy" and an average target price of $129.86.

Read Our Latest Report on EWBC

East West Bancorp Stock Up 0.5%

EWBC traded up $0.55 on Wednesday, hitting $121.45. 1,221,483 shares of the company were exchanged, compared to its average volume of 1,130,565. East West Bancorp has a twelve month low of $83.11 and a twelve month high of $124.84. The company has a market cap of $16.64 billion, a price-to-earnings ratio of 12.74, a price-to-earnings-growth ratio of 1.57 and a beta of 0.90. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.34. The firm has a 50-day moving average price of $111.75 and a two-hundred day moving average price of $110.16.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.46 by $0.11. The business had revenue of $773.75 million during the quarter, compared to analysts' expectations of $767.80 million. East West Bancorp had a return on equity of 15.72% and a net margin of 28.36%.The business's quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.08 EPS. On average, equities analysts predict that East West Bancorp will post 10.25 earnings per share for the current year.

Insider Transactions at East West Bancorp

In other news, Director Molly Campbell sold 1,800 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $122.81, for a total value of $221,058.00. Following the completion of the sale, the director directly owned 5,756 shares of the company's stock, valued at approximately $706,894.36. The trade was a 23.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Gary Teo sold 7,000 shares of the business's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $122.59, for a total value of $858,130.00. Following the completion of the sale, the executive vice president directly owned 5,252 shares of the company's stock, valued at $643,842.68. The trade was a 57.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 60,221 shares of company stock valued at $7,139,287 over the last quarter. Company insiders own 1.04% of the company's stock.

Institutional Trading of East West Bancorp

Several institutional investors and hedge funds have recently added to or reduced their stakes in EWBC. Northwestern Mutual Wealth Management Co. raised its stake in East West Bancorp by 84,090.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 5,311,566 shares of the financial services provider's stock valued at $596,967,000 after acquiring an additional 5,305,257 shares during the last quarter. Norges Bank purchased a new stake in East West Bancorp during the 4th quarter valued at approximately $199,529,000. Price T Rowe Associates Inc. MD raised its stake in East West Bancorp by 281.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,607,314 shares of the financial services provider's stock valued at $180,647,000 after acquiring an additional 1,185,781 shares during the last quarter. Boston Partners raised its stake 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 acquiring an additional 633,649 shares during the last quarter. Finally, AQR Capital Management LLC raised 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 acquiring an additional 542,149 shares during the last quarter. 89.53% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about East West Bancorp

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East West Bancorp Company Profile

(Get Free Report)

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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Analyst Recommendations for East West Bancorp (NASDAQ:EWBC)

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.

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