AlphaQuest LLC Trims Stake in East West Bancorp, Inc. $EWBC

Key Points

• AlphaQuest LLC sharply reduced its EWBC stake by 60.6% in the fourth quarter, leaving it with 14,917 shares valued at about $1.68 million.
• East West Bancorp posted solid quarterly results, with EPS of $2.57 topping estimates and revenue of $773.75 million, up 11.8% year over year.
• Analysts remain cautiously positive on the stock, with a consensus “Moderate Buy” rating and average target price of $133.69, while the shares recently traded near $123.48 and the company paid a $0.80 quarterly dividend.

AlphaQuest LLC cut its stake in shares of East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) by 60.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,917 shares of the financial services provider's stock after selling 22,988 shares during the quarter. AlphaQuest LLC's holdings in East West Bancorp were worth $1,677,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of EWBC. Geneos Wealth Management Inc. increased its position in shares of East West Bancorp by 66.9% during the first quarter. Geneos Wealth Management Inc. now owns 801 shares of the financial services provider's stock worth $72,000 after acquiring an additional 321 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of East West Bancorp during the second quarter worth approximately $274,000. Baird Financial Group Inc. purchased a new position in shares of East West Bancorp during the second quarter worth approximately $290,000. Marshall Wace LLP increased its position in shares of East West Bancorp by 34.3% during the second quarter. Marshall Wace LLP now owns 3,223 shares of the financial services provider's stock worth $325,000 after acquiring an additional 823 shares during the period. Finally, Cerity Partners LLC increased its position in shares of East West Bancorp by 118.7% during the second quarter. Cerity Partners LLC now owns 35,335 shares of the financial services provider's stock worth $3,568,000 after acquiring an additional 19,178 shares during the period. 89.53% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on EWBC. Piper Sandler lifted their price objective on shares of East West Bancorp from $111.00 to $123.00 and gave the company a "neutral" rating in a report on Monday, April 27th. TD Cowen lifted their price objective on shares of East West Bancorp from $137.00 to $143.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Cantor Fitzgerald reissued an "overweight" rating and set a $133.00 price objective on shares of East West Bancorp in a report on Wednesday, April 22nd. Morgan Stanley cut their price objective on shares of East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 31st. Finally, Truist Financial lifted their price objective on shares of East West Bancorp from $120.00 to $128.00 and gave the company a "hold" rating in a report on Thursday, April 23rd. Ten investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $133.69.

East West Bancorp Price Performance

NASDAQ EWBC opened at $123.48 on Thursday. The firm's fifty day simple moving average is $116.51 and its two-hundred day simple moving average is $113.78. 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, Inc. has a 12-month low of $88.97 and a 12-month high of $127.51. The firm has a market capitalization of $16.92 billion, a P/E ratio of 12.34, a P/E/G ratio of 1.53 and a beta of 0.97.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its quarterly earnings results 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. East West Bancorp had a net margin of 29.59% and a return on equity of 16.00%. The business had revenue of $773.75 million for the quarter, compared to analyst estimates of $767.80 million. During the same period in the previous year, the company earned $2.08 earnings per share. The business's revenue for the quarter was up 11.8% on a year-over-year basis. Analysts forecast that East West Bancorp, Inc. will post 10.6 EPS for the current fiscal year.

East West Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, May 18th. Shareholders of record on Monday, May 4th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Monday, May 4th. East West Bancorp's payout ratio is currently 31.97%.

Insiders Place Their Bets

In other East West Bancorp news, Vice Chairman Douglas Paul Krause sold 10,000 shares of East West Bancorp stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $123.50, for a total value of $1,235,000.00. Following the transaction, the insider directly owned 46,974 shares of the company's stock, valued at approximately $5,801,289. The trade was a 17.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Archana Deskus sold 1,800 shares of East West Bancorp stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $125.55, for a total transaction of $225,990.00. Following the completion of the transaction, the director directly owned 13,231 shares in the company, valued at $1,661,152.05. This represents a 11.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 41,800 shares of company stock valued at $5,165,690. 0.94% of the stock is currently owned by insiders.

East West Bancorp 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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