Commerce Bank Invests $2.05 Million in East West Bancorp, Inc. $EWBC

Key Points

• Commerce Bank acquired a new $2.05 million stake in East West Bancorp during the second quarter, buying 15,912 shares. Institutional investors collectively own 89.53% of the company.
• Analysts maintain a generally positive outlook, with the stock receiving a consensus “Moderate Buy” rating and an average price target of $141.92. Recent targets include $152 from Cantor Fitzgerald and $155 from Wells Fargo.
• East West Bancorp exceeded quarterly expectations, reporting $2.63 in EPS and $789.98 million in revenue, up 12.5% year over year. The company also paid a quarterly dividend of $0.80 per share, equivalent to a 2.5% yield.

Commerce Bank acquired a new stake in shares of East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 15,912 shares of the financial services provider's stock, valued at approximately $2,054,000.

Several other large investors also recently bought and sold shares of EWBC. Marathon Mission Inc. raised its holdings in shares of East West Bancorp by 3.8% during the second quarter. Marathon Mission Inc. now owns 2,566 shares of the financial services provider's stock valued at $331,000 after purchasing an additional 93 shares during the last quarter. Quarry LP lifted its position in East West Bancorp by 35.4% during the third quarter. Quarry LP now owns 390 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 102 shares during the period. Quadrant Capital Group LLC boosted its holdings in East West Bancorp by 1.8% in the third quarter. Quadrant Capital Group LLC now owns 5,674 shares of the financial services provider's stock worth $604,000 after purchasing an additional 102 shares during the last quarter. Bradley Foster & Sargent Inc. CT boosted its holdings in East West Bancorp by 1.1% in the fourth quarter. Bradley Foster & Sargent Inc. CT now owns 9,195 shares of the financial services provider's stock worth $1,033,000 after purchasing an additional 102 shares during the last quarter. Finally, Swiss Life Asset Management Ltd grew its position in East West Bancorp by 1.7% in the 4th quarter. Swiss Life Asset Management Ltd now owns 6,404 shares of the financial services provider's stock worth $720,000 after purchasing an additional 104 shares during the period. 89.53% of the stock is currently owned by institutional investors.

Insider Buying and Selling at East West Bancorp

In other East West Bancorp news, Vice Chairman Douglas Paul Krause sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $132.37, for a total transaction of $1,323,700.00. Following the completion of the sale, the insider directly owned 36,974 shares of the company's stock, valued at $4,894,248.38. This trade represents a 21.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jack C. Liu sold 1,000 shares of East West Bancorp stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $135.02, for a total transaction of $135,020.00. Following the sale, the director owned 13,709 shares in the company, valued at approximately $1,850,989.18. The trade was a 6.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,511 shares of company stock valued at $3,077,741 in the last three months. 0.94% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on EWBC shares. Cantor Fitzgerald reiterated an "overweight" rating and set a $152.00 target price on shares of East West Bancorp in a research note on Wednesday, August 19th. Citigroup restated a "buy" rating on shares of East West Bancorp in a research note on Thursday, July 23rd. Stephens lifted their price objective on East West Bancorp from $129.00 to $135.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 22nd. Wall Street Zen upgraded East West Bancorp from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Wells Fargo & Company initiated coverage on East West Bancorp in a report on Monday, August 10th. They issued an "overweight" rating and a $155.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $141.92.

East West Bancorp Price Performance

Shares of East West Bancorp stock opened at $129.43 on Wednesday. The stock's 50-day simple moving average is $131.30 and its 200-day simple moving average is $122.20. East West Bancorp, Inc. has a 52 week low of $92.67 and a 52 week high of $137.47. The company has a market capitalization of $17.73 billion, a price-to-earnings ratio of 12.45, a PEG ratio of 1.49 and a beta of 0.94. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.33.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $2.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.02. The firm had revenue of $789.98 million during the quarter, compared to analysts' expectations of $784.47 million. East West Bancorp had a return on equity of 16.07% and a net margin of 30.45%.The firm's revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the business posted $2.24 earnings per share. As a group, analysts expect that East West Bancorp, Inc. will post 10.61 earnings per share for the current fiscal year.

East West Bancorp Dividend Announcement

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