Bank of New York Mellon Corp Makes New Investment in East West Bancorp, Inc. $EWBC

Key Points

• Bank of New York Mellon initiated a position in East West Bancorp, purchasing 1.01 million shares worth approximately $130.7 million, or 0.74% of the company. Institutional investors collectively own 89.53% of EWBC.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $141.92. Recent targets include $152 from Cantor Fitzgerald and $155 from DA Davidson.
• East West Bancorp exceeded quarterly expectations, reporting $2.63 in EPS and $789.98 million in revenue, while revenue rose 12.5% year over year. The company also paid a quarterly dividend of $0.80 per share, representing a 2.5% annualized yield.

Bank of New York Mellon Corp purchased a new position in shares of East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 1,012,810 shares of the financial services provider's stock, valued at approximately $130,744,000. Bank of New York Mellon Corp owned 0.74% of East West Bancorp as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the stock. Geneos Wealth Management Inc. grew its position in 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 buying an additional 321 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of East West Bancorp during the 2nd quarter valued at approximately $274,000. Baird Financial Group Inc. acquired a new stake in shares of East West Bancorp during the 2nd quarter valued at approximately $290,000. Marshall Wace LLP boosted its stake in shares of East West Bancorp by 34.3% during the 2nd 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 in the last quarter. Finally, Cerity Partners LLC boosted its stake in shares of East West Bancorp by 118.7% during the 2nd 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 in the last quarter. Hedge funds and other institutional investors own 89.53% of the company's stock.

Analyst Ratings Changes

EWBC has been the subject of several research reports. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $152.00 price objective on shares of East West Bancorp in a report on Wednesday. Weiss Ratings restated a "buy (b)" rating on shares of East West Bancorp in a research report on Friday, July 10th. Morgan Stanley lifted their price target on East West Bancorp from $128.00 to $131.00 and gave the stock an "equal weight" rating in a research note on Monday, June 29th. Citigroup reiterated a "buy" rating on shares of East West Bancorp in a research report on Thursday, July 23rd. Finally, DA Davidson boosted their price objective on shares of East West Bancorp from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, East West Bancorp presently has a consensus rating of "Moderate Buy" and a consensus price target of $141.92.

East West Bancorp Price Performance

Shares of NASDAQ:EWBC opened at $129.97 on Monday. The stock's 50-day moving average price is $131.37 and its two-hundred day moving average price is $122.02. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 0.33. East West Bancorp, Inc. has a 12-month low of $92.67 and a 12-month high of $137.47. The firm has a market cap of $17.81 billion, a price-to-earnings ratio of 12.50, a PEG ratio of 1.51 and a beta of 0.94.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $2.63 EPS for the quarter, beating analysts' consensus estimates of $2.61 by $0.02. The company had revenue of $789.98 million during the quarter, compared to the consensus estimate of $784.47 million. East West Bancorp had a net margin of 30.45% and a return on equity of 16.07%. The company's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.24 EPS. On average, research analysts forecast that East West Bancorp, Inc. will post 10.61 EPS for the current year.

East West Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.20 annualized dividend and a yield of 2.5%. East West Bancorp's dividend payout ratio is 30.77%.

Insider Buying and Selling

In other news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $123.50, for a total transaction of $1,235,000.00. Following the completion of the sale, the insider directly owned 46,974 shares of the company's stock, valued at $5,801,289. The trade was a 17.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Irene H. Oh sold 11,211 shares of the stock in a transaction on Thursday, June 11th. The stock was 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 directly owned 85,998 shares in the company, valued at $11,093,742. This trade represents a 11.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 33,511 shares of company stock valued at $4,312,741. Insiders own 0.94% of the company's stock.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source