Hope Bancorp (NASDAQ:HOPE) Reaches New 1-Year High Following Earnings Beat

Key Points

• Hope Bancorp's shares reached a new 52-week high of $12.81 after reporting quarterly EPS of $0.23 versus a $0.22 consensus (quarterly revenue $141.02M missed the $145.33M estimate), with roughly 646,866 shares trading.
• Analysts are mixed: several firms have raised price targets (Keefe to $14.00, DA Davidson $14.50), but the MarketBeat consensus remains a Hold with a $14.25 target.
• Insider and institutional activity is notable: Director Daisy Y. Ha sold 31,020 shares (~$387k), insiders own 2.27% of the stock while hedge funds and other institutional investors own about 84%.

Hope Bancorp, Inc. (NASDAQ:HOPE - Get Free Report)'s stock price reached a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $12.81 and last traded at $12.7250, with a volume of 646866 shares. The stock had previously closed at $12.65.

The financial services provider reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.01. The company had revenue of $141.02 million during the quarter, compared to analysts' expectations of $145.33 million. Hope Bancorp had a return on equity of 5.09% and a net margin of 5.81%.The firm's quarterly revenue was up 21.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.17 earnings per share.

Wall Street Analysts Forecast Growth

HOPE has been the subject of a number of analyst reports. Keefe, Bruyette & Woods raised their price objective on shares of Hope Bancorp from $13.00 to $14.00 and gave the company a "market perform" rating in a research report on Monday, April 6th. DA Davidson reaffirmed a "buy" rating and set a $14.50 target price on shares of Hope Bancorp in a report on Wednesday, January 28th. Weiss Ratings raised shares of Hope Bancorp from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday. Zacks Research raised shares of Hope Bancorp from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 31st. Finally, Brean Capital raised shares of Hope Bancorp from a "neutral" rating to a "buy" rating in a report on Wednesday, April 1st. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $14.25.

Insider Buying and Selling

In related news, Director Daisy Y. Ha sold 31,020 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $12.48, for a total transaction of $387,129.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hope Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of HOPE. Global Retirement Partners LLC purchased a new position in shares of Hope Bancorp in the 4th quarter worth about $28,000. International Assets Investment Management LLC purchased a new position in shares of Hope Bancorp in the 4th quarter worth about $29,000. Geneos Wealth Management Inc. boosted its holdings 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 worth $36,000 after purchasing an additional 2,558 shares in the last quarter. Rockefeller Capital Management L.P. boosted its holdings in shares of Hope Bancorp by 375.1% in the 4th quarter. Rockefeller Capital Management L.P. now owns 3,625 shares of the financial services provider's stock worth $40,000 after purchasing an additional 2,862 shares in the last quarter. Finally, Versant Capital Management Inc lifted its stake in shares of Hope Bancorp by 61.0% in the 3rd quarter. Versant Capital Management Inc now owns 3,968 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 1,503 shares during the last quarter. 84.00% of the stock is currently owned by hedge funds and other institutional investors.

Hope Bancorp Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.97 and a current ratio of 0.97. The business has a 50 day moving average price of $11.62 and a two-hundred day moving average price of $11.32. The company has a market cap of $1.63 billion, a P/E ratio of 27.69 and a beta of 0.80.

Hope Bancorp Company Profile

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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