Hope Bancorp (NASDAQ:HOPE) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Hope Bancorp has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating.
• Despite the downgrade, Wall Street Zen has raised the stock from a "sell" rating to "hold," creating mixed signals among analysts.
• Hope Bancorp reported a significant earnings miss, with a loss of ($0.22) per share compared to a consensus estimate of $0.21.

Zacks Research cut shares of Hope Bancorp (NASDAQ:HOPE - Free Report) from a hold rating to a strong sell rating in a research note released on Tuesday morning,Zacks.com reports.

Separately, Wall Street Zen raised shares of Hope Bancorp from a "sell" rating to a "hold" rating in a research note on Monday, May 12th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $13.25.

Hope Bancorp Price Performance

Shares of HOPE stock traded down $0.06 during trading hours on Tuesday, hitting $11.13. The company's stock had a trading volume of 504,194 shares, compared to its average volume of 805,036. The business has a fifty day moving average of $10.77 and a 200-day moving average of $10.42. The stock has a market cap of $1.43 billion, a price-to-earnings ratio of 31.80 and a beta of 0.96. Hope Bancorp has a twelve month low of $8.82 and a twelve month high of $14.53. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.06.

Hope Bancorp (NASDAQ:HOPE - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.43). The firm had revenue of $94.58 million for the quarter, compared to analysts' expectations of $133.90 million. Hope Bancorp had a net margin of 4.27% and a return on equity of 4.45%. During the same period in the previous year, the company posted $0.22 EPS. As a group, equities research analysts anticipate that Hope Bancorp will post 1.09 EPS for the current year.

Hope Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were paid a dividend of $0.14 per share. The ex-dividend date of this dividend was Friday, August 1st. This represents a $0.56 dividend on an annualized basis and a yield of 5.0%. Hope Bancorp's dividend payout ratio (DPR) is currently 160.00%.

Hedge Funds Weigh In On Hope Bancorp

Large investors have recently bought and sold shares of the stock. CKW Financial Group purchased a new position in Hope Bancorp during the second quarter worth approximately $32,000. Geneos Wealth Management Inc. raised its stake in shares of Hope Bancorp by 294.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 3,428 shares of the financial services provider's stock valued at $36,000 after acquiring an additional 2,558 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Hope Bancorp by 157.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,026 shares of the financial services provider's stock valued at $54,000 after acquiring an additional 3,071 shares during the period. GAMMA Investing LLC raised its stake in shares of Hope Bancorp by 29.3% in the 2nd quarter. GAMMA Investing LLC now owns 5,345 shares of the financial services provider's stock valued at $57,000 after acquiring an additional 1,211 shares during the period. Finally, KBC Group NV raised its stake in shares of Hope Bancorp by 16.6% in the 1st quarter. KBC Group NV now owns 8,269 shares of the financial services provider's stock valued at $87,000 after acquiring an additional 1,176 shares during the period. Hedge funds and other institutional investors own 84.00% of the company's stock.

About Hope Bancorp

Hope Bancorp, Inc operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans.