Wellington Management Group LLP Lowers Stake in East West Bancorp, Inc. $EWBC

Key Points

• Wellington Management reduced its East West Bancorp stake by 27.9% in the second quarter, selling 22,809 shares and retaining 58,886 shares worth approximately $7.6 million. Institutional investors collectively own 89.53% of EWBC.
• East West Bancorp reported quarterly EPS of $2.63, exceeding analysts’ $2.61 estimate, while revenue rose 12.5% year over year to $789.98 million. The company also maintains a quarterly dividend of $0.80 per share, representing a 2.5% yield.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $144.15; Morgan Stanley recently upgraded EWBC to “overweight” with a $160 target.

Wellington Management Group LLP lessened its stake in East West Bancorp, Inc. (NASDAQ:EWBC - Free Report) by 27.9% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 58,886 shares of the financial services provider's stock after selling 22,809 shares during the period. Wellington Management Group LLP's holdings in East West Bancorp were worth $7,602,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the stock. Geneos Wealth Management Inc. boosted its holdings in shares of East West Bancorp by 66.9% in the first quarter. Geneos Wealth Management Inc. now owns 801 shares of the financial services provider's stock valued at $72,000 after purchasing an additional 321 shares during the period. Sivia Capital Partners LLC bought a new stake in East West Bancorp during the 2nd quarter valued at $274,000. Baird Financial Group Inc. purchased a new stake in shares of East West Bancorp in the 2nd quarter worth $290,000. Marshall Wace LLP lifted its holdings in shares of East West Bancorp by 34.3% in the 2nd quarter. Marshall Wace LLP now owns 3,223 shares of the financial services provider's stock worth $325,000 after buying an additional 823 shares during the period. Finally, Cerity Partners LLC grew its position 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 buying an additional 19,178 shares in the last quarter. 89.53% of the stock is currently owned by institutional investors.

East West Bancorp Price Performance

Shares of EWBC stock opened at $129.25 on Wednesday. The stock's 50-day moving average is $131.38 and its 200 day moving average is $122.88. East West Bancorp, Inc. has a 1-year low of $92.67 and a 1-year high of $137.47. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.88 and a quick ratio of 0.88. The company has a market cap of $17.71 billion, a P/E ratio of 12.43, a PEG ratio of 1.51 and a beta of 0.93.

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

East West Bancorp Dividend Announcement

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

Analyst Upgrades and Downgrades

EWBC has been the subject of several recent research reports. Morgan Stanley upgraded East West Bancorp from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $131.00 to $160.00 in a report on Tuesday. Stephens raised their target price on shares of East West Bancorp from $129.00 to $135.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 22nd. Truist Financial raised their target price on shares of East West Bancorp from $128.00 to $136.00 and gave the company a "hold" rating in a research report on Friday, July 10th. DA Davidson boosted their price target on shares of East West Bancorp from $150.00 to $155.00 and gave the company a "buy" rating in a report on Thursday, July 23rd. Finally, Barclays increased their price objective on shares of East West Bancorp from $150.00 to $155.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $144.15.

Insider Activity at East West Bancorp

In other East West Bancorp news, insider Irene H. Oh sold 800 shares of East West Bancorp stock in a transaction on Monday, June 15th. The shares were sold at an average price of $133.19, for a total value of $106,552.00. Following the transaction, the insider directly owned 84,698 shares of the company's stock, valued at approximately $11,280,926.62. The trade was a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jack Liu sold 1,000 shares of the company's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $135.02, for a total value of $135,020.00. Following the transaction, the director directly owned 13,709 shares in the company, valued at approximately $1,850,989.18. The trade was a 6.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,511 shares of company stock valued at $3,077,741 over the last 90 days. Insiders own 0.94% of the company's stock.

East West Bancorp Company 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.

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