Hope Bancorp (NASDAQ:HOPE) Hits New 1-Year High - What's Next?

Key Points

• Hope Bancorp shares reached a new 52-week high of $14.24, up from a prior close of $14.01. Analysts’ consensus rating remains “Hold,” with an average price target of $15.00, although DA Davidson raised its target to $16.00 and maintained a “Buy” rating.
• The company exceeded quarterly expectations, reporting earnings of $0.27 per share versus the $0.26 consensus estimate and revenue of $147.82 million, slightly above forecasts.
• Hope Bancorp declared a quarterly dividend of $0.14 per share, implying a 4.0% annualized yield. Institutional investors own approximately 84% of the company, while an insider recently sold 12,000 shares.

Shares of Hope Bancorp, Inc. (NASDAQ:HOPE - Get Free Report) reached a new 52-week high on Monday . The company traded as high as $14.24 and last traded at $14.2450, with a volume of 67100 shares trading hands. The stock had previously closed at $14.01.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on HOPE shares. DA Davidson lifted their price objective on shares of Hope Bancorp from $15.00 to $16.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Weiss Ratings raised shares of Hope Bancorp from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Hope Bancorp from $13.00 to $14.00 and gave the stock a "market perform" rating in a report on Monday, April 6th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $15.00.

Hope Bancorp Price Performance

The company has a 50-day moving average of $13.23 and a 200-day moving average of $12.34. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.96 and a current ratio of 0.98. The firm has a market capitalization of $1.81 billion, a price-to-earnings ratio of 14.16 and a beta of 0.83.

Hope Bancorp (NASDAQ:HOPE - Get Free Report) last announced its earnings results on Monday, July 27th. The financial services provider reported $0.27 EPS for the quarter, topping the consensus estimate of $0.26 by $0.01. Hope Bancorp had a net margin of 12.53% and a return on equity of 5.71%. The firm had revenue of $147.82 million for the quarter, compared to the consensus estimate of $146.50 million. During the same period last year, the company posted ($0.22) EPS. As a group, research analysts anticipate that Hope Bancorp, Inc. will post 1.13 EPS for the current fiscal year.

Hope Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Thursday, August 6th. Hope Bancorp's payout ratio is currently 56.00%.

Insiders Place Their Bets

In related news, Director Daisy Y. Ha sold 12,000 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $12.53, for a total value of $150,360.00. Following the completion of the transaction, the director directly owned 373,115 shares of the company's stock, valued at approximately $4,675,130.95. This represents a 3.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.27% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP raised its position in Hope Bancorp by 2.7% in the 3rd quarter. Wellington Management Group LLP now owns 11,335,999 shares of the financial services provider's stock valued at $122,089,000 after buying an additional 303,019 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Hope Bancorp by 4.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,367,855 shares of the financial services provider's stock worth $82,298,000 after acquiring an additional 315,028 shares in the last quarter. State Street Corp raised its holdings in shares of Hope Bancorp by 3.3% in the second quarter. State Street Corp now owns 6,494,266 shares of the financial services provider's stock valued at $69,683,000 after purchasing an additional 209,442 shares during the last quarter. HoldCo Asset Management LP acquired a new stake in shares of Hope Bancorp in the fourth quarter valued at approximately $32,838,000. Finally, Rhino Investment Partners Inc lifted its position in shares of Hope Bancorp by 9.9% in the first quarter. Rhino Investment Partners Inc now owns 2,595,281 shares of the financial services provider's stock worth $28,989,000 after purchasing an additional 232,783 shares in the last quarter. 84.00% of the stock is owned by institutional investors and hedge funds.

About Hope Bancorp

Hope Bancorp, Inc operates as the bank holding company for Hope Bank, a California-chartered financial institution serving small and middle-market businesses, professionals and affluent individuals. The company's principal activities include accepting a variety of deposit products—such as checking accounts, savings and money market accounts, and time deposits—and extending commercial credit facilities. With a focus on community banking, Hope Bancorp tailors its offerings to meet the needs of clients in diverse industries, including real estate, professional services and import/export trade.

In its lending business, Hope Bancorp provides commercial real estate loans, construction financing, working capital lines of credit and equipment financing.

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