East West Bancorp (NASDAQ:EWBC) Trading 4.5% Higher Following Better-Than-Expected Earnings

Key Points

• East West Bancorp shares rose 4.5% after reporting better-than-expected earnings, with an EPS of $2.08 for the quarter and revenue of $627.36 million.
• Analysts have responded positively, with multiple upgrades and a consensus price target of $121.33 from various firms, including a price objective of $145.00 from Barclays.
• Insiders have sold significant shares recently, with over 70,000 shares valued at approximately $7.38 million sold in the last ninety days.

East West Bancorp, Inc. (NASDAQ:EWBC - Get Free Report) shares traded up 4.5% on Wednesday following a stronger than expected earnings report. The stock traded as high as $103.56 and last traded at $103.29. 243,331 shares traded hands during trading, a decline of 76% from the average session volume of 1,000,966 shares. The stock had previously closed at $98.81.

The financial services provider reported $2.08 EPS for the quarter. East West Bancorp had a return on equity of 15.09% and a net margin of 26.06%.The firm had revenue of $627.36 million for the quarter.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Truist Financial set a $112.00 price objective on East West Bancorp in a report on Friday, October 10th. DA Davidson increased their target price on East West Bancorp from $115.00 to $125.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Wells Fargo & Company increased their target price on East West Bancorp from $100.00 to $125.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Barclays increased their target price on East West Bancorp from $140.00 to $145.00 and gave the stock an "overweight" rating in a report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods increased their target price on East West Bancorp from $110.00 to $120.00 and gave the stock an "outperform" rating in a report on Wednesday, July 23rd. Twelve investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $121.33.

Insiders Place Their Bets

In related news, Director Jack C. Liu sold 1,000 shares of the firm's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $105.00, for a total value of $105,000.00. Following the sale, the director directly owned 14,974 shares of the company's stock, valued at $1,572,270. This trade represents a 6.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Gary Teo sold 6,550 shares of the firm's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $106.47, for a total value of $697,378.50. Following the completion of the sale, the executive vice president directly owned 12,235 shares in the company, valued at $1,302,660.45. This trade represents a 34.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 70,240 shares of company stock valued at $7,379,678. 1.04% of the stock is owned by corporate insiders.

Institutional Trading of East West Bancorp

Several large investors have recently bought and sold shares of the business. Xponance Inc. raised its position in East West Bancorp by 1.9% in the first quarter. Xponance Inc. now owns 16,141 shares of the financial services provider's stock valued at $1,449,000 after purchasing an additional 302 shares during the last quarter. Janney Montgomery Scott LLC raised its position in East West Bancorp by 25.0% in the first quarter. Janney Montgomery Scott LLC now owns 28,287 shares of the financial services provider's stock valued at $2,539,000 after purchasing an additional 5,654 shares during the last quarter. Cerity Partners LLC raised its position in East West Bancorp by 35.9% in the first quarter. Cerity Partners LLC now owns 16,157 shares of the financial services provider's stock valued at $1,450,000 after purchasing an additional 4,271 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its position in East West Bancorp by 7.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 48,093 shares of the financial services provider's stock valued at $4,317,000 after purchasing an additional 3,460 shares during the last quarter. Finally, Deutsche Bank AG raised its position in East West Bancorp by 16.5% in the first quarter. Deutsche Bank AG now owns 21,516 shares of the financial services provider's stock valued at $1,931,000 after purchasing an additional 3,052 shares during the last quarter. 89.53% of the stock is owned by institutional investors and hedge funds.

East West Bancorp Stock Up 3.0%

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 stock has a market capitalization of $14.02 billion, a P/E ratio of 11.89, a P/E/G ratio of 1.34 and a beta of 0.93. The firm has a 50-day simple moving average of $104.97 and a 200 day simple moving average of $97.62.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.