Hope Bancorp (NASDAQ:HOPE) Reaches New 52-Week High - Time to Buy?

Key Points

• Hope Bancorp hit a new 52-week high — shares traded as high as $12.79 (last $12.765) on volume of 432,510, giving the company a market cap of about $1.6 billion.
• Analyst stance is mixed with a consensus "Hold" and $14.25 target — two analysts rate the stock Buy and three rate it Hold, with recent price targets in the $13–$14.50 range.
• Recent quarter beat but dividend sustainability is a concern — Q1 EPS of $0.27 topped estimates and revenue rose 23.6% year‑over‑year, yet the stock yields 4.5% while the payout ratio stands at 121.74%, indicating potential dividend risk.

Shares of Hope Bancorp, Inc. (NASDAQ:HOPE - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The company traded as high as $12.79 and last traded at $12.7650, with a volume of 432510 shares trading hands. The stock had previously closed at $12.26.

Analyst Ratings Changes

HOPE has been the subject of a number of analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Hope Bancorp in a research note on Monday, December 29th. DA Davidson reiterated a "buy" rating and set a $14.50 price target on shares of Hope Bancorp in a research note on Wednesday, January 28th. Brean Capital upgraded Hope Bancorp from a "neutral" rating to a "buy" rating in a research note on Wednesday, April 1st. Zacks Research upgraded Hope Bancorp from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 31st. Finally, Keefe, Bruyette & Woods lifted their price target on Hope Bancorp from $13.00 to $14.00 and gave the company a "market perform" rating in a research note on Monday, April 6th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $14.25.

Hope Bancorp Stock Performance

The company's 50-day simple moving average is $11.58 and its 200 day simple moving average is $11.23. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.17. The stock has a market cap of $1.60 billion, a P/E ratio of 27.24 and a beta of 0.80.

Hope Bancorp (NASDAQ:HOPE - Get Free Report) last posted its earnings results on Tuesday, January 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 5.81% and a return on equity of 5.09%. The firm had revenue of $145.76 million for the quarter, compared to analysts' expectations of $142.90 million. During the same quarter last year, the firm earned $0.20 EPS. The company's quarterly revenue was up 23.6% compared to the same quarter last year. As a group, sell-side analysts expect that Hope Bancorp, Inc. will post 1.09 EPS for the current fiscal year.

Hope Bancorp Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Friday, February 6th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $0.56 annualized dividend and a dividend yield of 4.5%. Hope Bancorp's dividend payout ratio (DPR) is currently 121.74%.

Insider Activity at Hope Bancorp

In other Hope Bancorp news, Director Daisy Y. Ha sold 31,020 shares of Hope Bancorp stock in a transaction that occurred on Friday, February 6th. The shares were 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 SEC, which is accessible through this link. 5.16% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hope Bancorp

A number of hedge funds have recently modified their holdings of the stock. SG Americas Securities LLC raised its holdings in shares of Hope Bancorp by 83.4% in the 1st quarter. SG Americas Securities LLC now owns 93,360 shares of the financial services provider's stock worth $1,043,000 after purchasing an additional 42,456 shares during the period. Hsbc Holdings PLC purchased a new position in shares of Hope Bancorp during the 4th quarter valued at $595,000. Rockefeller Capital Management L.P. grew its position in shares of Hope Bancorp by 375.1% during the 4th quarter. Rockefeller Capital Management L.P. now owns 3,625 shares of the financial services provider's stock valued at $40,000 after purchasing an additional 2,862 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Hope Bancorp by 5.1% during the 4th quarter. Corient Private Wealth LLC now owns 22,218 shares of the financial services provider's stock valued at $244,000 after purchasing an additional 1,074 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its position in shares of Hope Bancorp by 12.9% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 23,384 shares of the financial services provider's stock valued at $256,000 after purchasing an additional 2,672 shares in the last quarter. Institutional investors own 84.00% of the company's stock.

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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