Retirement Systems of Alabama Sells 10,026 Shares of East West Bancorp, Inc. $EWBC

Key Points

• Retirement Systems of Alabama trimmed its stake in East West Bancorp by 2.8%, selling 10,026 shares and now holds 352,002 shares (about $39.56M); institutional investors own roughly 89.53% of the stock.
• East West beat quarterly estimates with EPS of $2.52 (vs. $2.48) and revenue of $753.8M (vs. $745.0M) and raised its quarterly dividend to $0.80 (annualized $3.20, ~3.0% yield; DPR ~33.6%).
• Analyst sentiment is a "Moderate Buy" with a consensus target of $128.29; recent price targets range roughly $125–$150 and ratings are mixed across firms.

Retirement Systems of Alabama trimmed its position in shares of East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) by 2.8% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 352,002 shares of the financial services provider's stock after selling 10,026 shares during the quarter. Retirement Systems of Alabama owned about 0.26% of East West Bancorp worth $39,562,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Geneos Wealth Management Inc. lifted 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 valued at $72,000 after acquiring an additional 321 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in East West Bancorp in the second quarter worth $274,000. Steward Partners Investment Advisory LLC grew its holdings in East West Bancorp by 19.7% in the second quarter. Steward Partners Investment Advisory LLC now owns 3,421 shares of the financial services provider's stock worth $345,000 after purchasing an additional 562 shares during the last quarter. Advisors Asset Management Inc. increased its position in shares of East West Bancorp by 17.3% during the second quarter. Advisors Asset Management Inc. now owns 8,585 shares of the financial services provider's stock worth $867,000 after purchasing an additional 1,264 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in shares of East West Bancorp by 8.2% during the second quarter. Russell Investments Group Ltd. now owns 52,766 shares of the financial services provider's stock worth $5,328,000 after purchasing an additional 4,018 shares in the last quarter. 89.53% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

EWBC has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft started coverage on East West Bancorp in a research report on Tuesday, December 16th. They issued a "buy" rating and a $133.00 price objective for the company. Barclays upped their target price on East West Bancorp from $145.00 to $150.00 and gave the company an "overweight" rating in a research report on Friday, December 19th. Morgan Stanley decreased their price target on East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating for the company in a research note on Tuesday. Zacks Research downgraded East West Bancorp from a "strong-buy" rating to a "hold" rating in a report on Wednesday, December 24th. Finally, UBS Group set a $125.00 price target on East West Bancorp in a research note on Wednesday, February 4th. Ten equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $128.29.

East West Bancorp Price Performance

Shares of EWBC opened at $106.76 on Wednesday. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.89 and a quick ratio of 0.89. The company's fifty day moving average price is $112.18 and its 200-day moving average price is $109.36. East West Bancorp, Inc. has a 1-year low of $68.27 and a 1-year high of $123.82. The firm has a market capitalization of $14.69 billion, a PE ratio of 11.21, a price-to-earnings-growth ratio of 1.35 and a beta of 0.90.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last issued its earnings results on Thursday, January 22nd. The financial services provider reported $2.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.48 by $0.04. East West Bancorp had a return on equity of 15.72% and a net margin of 28.36%.The company had revenue of $753.79 million during the quarter, compared to analyst estimates of $745.04 million. During the same quarter last year, the business posted $2.10 EPS. On average, equities research analysts predict that East West Bancorp, Inc. will post 8.85 EPS for the current year.

East West Bancorp Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were paid a $0.80 dividend. The ex-dividend date was Monday, February 2nd. This is a positive change from East West Bancorp's previous quarterly dividend of $0.60. This represents a $3.20 annualized dividend and a dividend yield of 3.0%. East West Bancorp's dividend payout ratio (DPR) is 33.61%.

Insider Transactions at East West Bancorp

In related news, CEO Dominic Ng sold 50,000 shares of East West Bancorp stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $117.82, for a total transaction of $5,891,000.00. Following the completion of the sale, the chief executive officer owned 808,331 shares of the company's stock, valued at $95,237,558.42. The trade was a 5.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Gary Teo sold 7,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $122.59, for a total value of $858,130.00. Following the completion of the sale, the executive vice president owned 5,252 shares in the company, valued at approximately $643,842.68. This represents a 57.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 60,221 shares of company stock valued at $7,139,287. 1.04% of the stock is owned by company insiders.

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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