Vanguard Group Inc. Decreases Stock Position in East West Bancorp, Inc. $EWBC

Key Points

• Vanguard trimmed its stake in East West Bancorp by 1.5%, selling 207,574 shares in Q4 and now holds 13,632,779 shares (about 9.91% of the company) valued at $1.532 billion.
• Operational results: East West reported Q1 EPS of $2.57 (vs. $2.46 expected) and revenue of $773.8M (up 11.8% YoY), and declared a $0.80 quarterly dividend ($3.20 annual, 2.5% yield).
• Market view and ownership: Institutional investors own 89.53% of the stock while insiders sold 62,021 shares (~$7.37M) in the past 90 days; analysts show a "Moderate Buy" consensus with an average target of $132.36 amid mixed price-target revisions.

Vanguard Group Inc. lessened its stake in East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) by 1.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 13,632,779 shares of the financial services provider's stock after selling 207,574 shares during the quarter. Vanguard Group Inc. owned about 9.91% of East West Bancorp worth $1,532,188,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Boston Partners boosted its position in East West Bancorp by 19.6% in the 3rd quarter. Boston Partners now owns 3,874,737 shares of the financial services provider's stock valued at $412,464,000 after buying an additional 633,649 shares during the last quarter. AQR Capital Management LLC boosted its position in East West Bancorp by 61.9% in the 2nd quarter. AQR Capital Management LLC now owns 1,418,174 shares of the financial services provider's stock valued at $143,207,000 after buying an additional 542,149 shares during the last quarter. Bank of America Corp DE boosted its position in East West Bancorp by 23.6% in the 2nd quarter. Bank of America Corp DE now owns 2,051,360 shares of the financial services provider's stock valued at $207,146,000 after buying an additional 391,059 shares during the last quarter. Fiera Capital Corp purchased a new position in East West Bancorp in the 3rd quarter valued at about $41,243,000. Finally, Schroder Investment Management Group boosted its position in East West Bancorp by 10.9% in the 3rd quarter. Schroder Investment Management Group now owns 3,395,376 shares of the financial services provider's stock valued at $361,879,000 after buying an additional 334,429 shares during the last quarter. Hedge funds and other institutional investors own 89.53% of the company's stock.

Insider Transactions at East West Bancorp

In other East West Bancorp news, Director Molly Campbell sold 1,800 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $122.81, for a total value of $221,058.00. Following the transaction, the director owned 5,756 shares of the company's stock, valued at $706,894.36. This trade represents a 23.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jack C. Liu sold 1,421 shares of the firm's stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $119.00, for a total transaction of $169,099.00. Following the completion of the transaction, the director directly owned 13,553 shares in the company, valued at $1,612,807. This represents a 9.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 62,021 shares of company stock valued at $7,365,277 over the last ninety days. Insiders own 0.94% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Barclays decreased their price objective on shares of East West Bancorp from $150.00 to $142.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. Morgan Stanley reduced their price target on shares of East West Bancorp from $141.00 to $128.00 and set an "equal weight" rating on the stock in a research report on Tuesday, March 31st. DA Davidson increased their price target on shares of East West Bancorp from $135.00 to $140.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. UBS Group increased their price target on shares of East West Bancorp from $125.00 to $138.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Finally, TD Cowen increased their price target on shares of East West Bancorp from $137.00 to $143.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Eleven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $132.36.

East West Bancorp Stock Performance

Shares of NASDAQ EWBC opened at $126.47 on Friday. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.34. The firm's 50-day moving average price is $112.48 and its two-hundred day moving average price is $111.03. East West Bancorp, Inc. has a 52-week low of $85.02 and a 52-week high of $127.00. The stock has a market capitalization of $17.32 billion, a P/E ratio of 12.63, a P/E/G ratio of 1.53 and a beta of 0.90.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last issued its earnings results on Tuesday, April 21st. The financial services provider reported $2.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $773.75 million for the quarter, compared to analysts' expectations of $767.80 million. During the same quarter last year, the company posted $2.08 earnings per share. East West Bancorp's revenue was up 11.8% on a year-over-year basis. As a group, sell-side analysts forecast that East West Bancorp, Inc. will post 10.57 earnings per share for the current year.

East West Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, May 18th. Shareholders of record on Monday, May 4th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Monday, May 4th. This represents a $3.20 dividend on an annualized basis and a yield of 2.5%. East West Bancorp's dividend payout ratio (DPR) is currently 31.97%.

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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