Hope Bancorp (NASDAQ:HOPE) Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Hope Bancorp from "strong sell" to "hold," and the stock carries a consensus rating of Hold with an average price target of $13.75 (two Buys, three Holds among analysts).
• Hope Bancorp beat quarterly estimates with $0.27 EPS and $145.8M revenue (up 23.6% year‑over‑year), and the stock traded up roughly 4.7% to open at $11.70, with a market cap near $1.5 billion.
• Near‑term buying interest is being driven by Bank of Hope’s planned acquisition of SMBC MANUBANK’s U.S. commercial unit, though the all‑cash deal raises potential capital, regulatory and integration risks.

Hope Bancorp (NASDAQ:HOPE - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other analysts have also issued reports on the stock. DA Davidson reiterated a "buy" rating and set a $14.50 price objective on shares of Hope Bancorp in a research note on Wednesday, January 28th. Keefe, Bruyette & Woods lifted their price target on shares of Hope Bancorp from $12.00 to $13.00 and gave the stock a "market perform" rating in a research note on Wednesday, January 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hope Bancorp in a research report on Monday, December 29th. Finally, Brean Capital raised Hope Bancorp from a "neutral" rating to a "buy" rating in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Hope Bancorp has a consensus rating of "Hold" and an average price target of $13.75.

Hope Bancorp Trading Up 4.7%

HOPE stock opened at $11.70 on Tuesday. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.17. The company has a market cap of $1.50 billion, a price-to-earnings ratio of 25.44 and a beta of 0.80. The business has a fifty day simple moving average of $11.59 and a 200-day simple moving average of $11.14. Hope Bancorp has a 52 week low of $8.82 and a 52 week high of $12.79.

Hope Bancorp (NASDAQ:HOPE - Get Free Report) last released its quarterly earnings data on Tuesday, January 27th. The financial services provider reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.01. Hope Bancorp had a net margin of 5.81% and a return on equity of 5.09%. The company had revenue of $145.76 million during the quarter, compared to analyst estimates of $142.90 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The business's quarterly revenue was up 23.6% compared to the same quarter last year. On average, equities research analysts expect that Hope Bancorp will post 1.09 EPS for the current year.

Insider Buying and Selling

In other Hope Bancorp news, Director Daisy Y. Ha sold 31,020 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $12.48, for a total value of $387,129.60. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 5.16% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in HOPE. Rhino Investment Partners Inc lifted its position in Hope Bancorp by 29.8% in the third quarter. Rhino Investment Partners Inc now owns 1,896,501 shares of the financial services provider's stock worth $20,425,000 after purchasing an additional 435,165 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Hope Bancorp by 54.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 877,835 shares of the financial services provider's stock worth $9,419,000 after acquiring an additional 308,646 shares in the last quarter. American Century Companies Inc. lifted its holdings in Hope Bancorp by 6.3% in the 3rd quarter. American Century Companies Inc. now owns 3,195,059 shares of the financial services provider's stock valued at $34,411,000 after acquiring an additional 188,182 shares during the last quarter. Public Sector Pension Investment Board boosted its position in shares of Hope Bancorp by 15.7% during the 3rd quarter. Public Sector Pension Investment Board now owns 499,967 shares of the financial services provider's stock valued at $5,385,000 after purchasing an additional 67,742 shares in the last quarter. Finally, Walleye Capital LLC grew its stake in shares of Hope Bancorp by 865.2% in the 2nd quarter. Walleye Capital LLC now owns 283,762 shares of the financial services provider's stock worth $3,045,000 after purchasing an additional 254,362 shares during the last quarter. Institutional investors and hedge funds own 84.00% of the company's stock.

Key Headlines Impacting Hope Bancorp

Here are the key news stories impacting Hope Bancorp this week:

• Positive Sentiment: Acquisition — Bank of Hope will acquire SMBC MANUBANK’s U.S. commercial banking unit in an accretive, all-cash deal that expands the lender’s Los Angeles commercial franchise and adds loans, deposits and client relationships. This deal is the primary near-term driver behind buying interest. Bank of Hope to buy SMBC commercial unit
• Positive Sentiment: Analyst upgrade — Brean Capital raised HOPE from "neutral" to "buy," which likely boosted demand and helped lift the stock on heavier-than-normal volume. Upgrades can attract short-term flow and re-rate smaller regional banks. Brean Capital upgrade report
• Neutral Sentiment: Underlying performance — Hope recently beat quarterly EPS and showed ~23.6% revenue growth year-over-year, supporting the view that the bank can integrate and grow acquired commercial assets; valuation remains moderate (PE ~25) versus peers. Bank of Hope to Acquire the Commercial Banking Unit of SMBC MANUBANK
• Negative Sentiment: Deal & execution risks — the purchase is all-cash, so watch capital and liquidity effects, regulatory approval timelines, integration costs and potential credit concentrations (commercial loans). Execution missteps or higher-than-expected capital needs could pressure shares. L.A. bank to buy U.S. commercial banking unit from Japan's SMBC

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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