BlackRock Inc. Acquires New Shares in East West Bancorp, Inc. $EWBC

Key Points

• BlackRock acquired 13.5 million East West Bancorp shares worth approximately $1.745 billion, giving it a 9.87% stake. Institutional investors collectively own 89.53% of EWBC.
• East West Bancorp exceeded quarterly expectations, reporting $2.63 in EPS and $789.98 million in revenue; revenue rose 12.5% year over year. Analysts hold a “Moderate Buy” consensus rating with a $141.92 average price target.
• The company paid a quarterly dividend of $0.80 per share, equivalent to $3.20 annually and a 2.5% yield. Meanwhile, insiders sold 33,511 shares worth $4.31 million over the past 90 days.

BlackRock Inc. bought a new position in shares of East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 13,517,378 shares of the financial services provider's stock, valued at approximately $1,744,958,000. BlackRock Inc. owned about 9.87% of East West Bancorp at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Atlantic Union Bankshares Corp bought a new stake in East West Bancorp in the fourth quarter valued at approximately $31,000. Kelleher Financial Advisors acquired a new position in shares of East West Bancorp in the 3rd quarter valued at $31,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of East West Bancorp in the 2nd quarter valued at $37,000. Wilmington Savings Fund Society FSB increased its position in shares of 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 buying an additional 113 shares in the last quarter. Finally, Quarry LP raised its stake in East West Bancorp by 35.4% during the 3rd quarter. Quarry LP now owns 390 shares of the financial services provider's stock worth $42,000 after buying an additional 102 shares during the period. 89.53% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the business's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $132.37, for a total value of $1,323,700.00. Following the sale, the insider owned 36,974 shares of the company's stock, valued at $4,894,248.38. The trade was a 21.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jack C. Liu sold 1,000 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $135.02, for a total transaction of $135,020.00. Following the transaction, the director owned 13,709 shares of the company's stock, valued at $1,850,989.18. The trade was a 6.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 33,511 shares of company stock worth $4,312,741 over the last ninety days. Insiders own 0.94% of the company's stock.

Wall Street Analysts Forecast Growth

EWBC has been the topic of several recent analyst reports. Wells Fargo & Company began coverage on East West Bancorp in a report on Monday, August 10th. They set an "overweight" rating and a $155.00 target price on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of East West Bancorp in a research report on Friday, July 10th. Morgan Stanley lifted their price objective on East West Bancorp from $128.00 to $131.00 and gave the company an "equal weight" rating in a report on Monday, June 29th. Wall Street Zen upgraded East West Bancorp from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, UBS Group increased their target price on East West Bancorp from $125.00 to $138.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $141.92.

East West Bancorp Stock Performance

EWBC opened at $130.40 on Thursday. The business's 50-day moving average price is $131.43 and its two-hundred day moving average price is $121.80. East West Bancorp, Inc. has a 1 year low of $92.67 and a 1 year high of $137.47. The company has a market capitalization of $17.87 billion, a price-to-earnings ratio of 12.54, a P/E/G ratio of 1.56 and a beta of 0.94. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.88 and a quick ratio of 0.88.

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 earnings per share for the quarter, topping the consensus estimate of $2.61 by $0.02. East West Bancorp had a return on equity of 16.07% and a net margin of 30.45%.The company had revenue of $789.98 million during the quarter, compared to analysts' expectations of $784.47 million. During the same period in the prior year, the firm earned $2.24 earnings per share. East West Bancorp's revenue for the quarter was up 12.5% compared to the same quarter last year. Equities analysts expect that East West Bancorp, Inc. will post 10.61 EPS for the current fiscal year.

East West Bancorp Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 3rd were issued a $0.80 dividend. The ex-dividend date was Monday, August 3rd. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.5%. East West Bancorp's dividend payout ratio (DPR) is 30.77%.

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.

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