Community West Bancshares (NASDAQ:CWBC) Stock Breaks Below Fifty Day Moving Average - Here's Why

Key Points

• Community West Bancshares fell below its 50-day moving average, trading as low as $25.82 and last at $25.88, versus a 50-day average of $26.08.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $28.83; ratings range from Strong Buy to Hold.
• The bank beat quarterly earnings expectations, reporting EPS of $0.66 versus $0.57 forecast, and announced a $0.12 quarterly dividend, equivalent to a 1.9% yield.

Shares of Community West Bancshares (NASDAQ:CWBC - Get Free Report) crossed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $26.08 and traded as low as $25.82. Community West Bancshares shares last traded at $25.88, with a volume of 114,117 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on CWBC shares. Keefe, Bruyette & Woods reiterated a "market perform" rating on shares of Community West Bancshares in a report on Wednesday, November 4th. Benchmark raised shares of Community West Bancshares to a "strong-buy" rating in a research report on Wednesday, September 23rd. Weiss Ratings restated a "buy (b)" rating on shares of Community West Bancshares in a report on Tuesday, October 6th. Finally, DA Davidson upped their price target on shares of Community West Bancshares from $29.00 to $31.00 and gave the company a "buy" rating in a research report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Community West Bancshares presently has a consensus rating of "Moderate Buy" and an average target price of $28.83.

Community West Bancshares Price Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.12. The stock's 50 day moving average price is $26.08 and its two-hundred day moving average price is $25.01. The firm has a market capitalization of $702.38 million, a price-to-earnings ratio of 16.38 and a beta of 0.86.

Community West Bancshares (NASDAQ:CWBC - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.09. Community West Bancshares had a return on equity of 10.46% and a net margin of 14.05%. The business had revenue of $58.02 million during the quarter, compared to analyst estimates of $56.79 million. Analysts anticipate that Community West Bancshares will post 2.36 EPS for the current fiscal year.

Community West Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be paid a $0.12 dividend. The ex-dividend date is Friday, November 6th. This represents a $0.48 dividend on an annualized basis and a yield of 1.9%. Community West Bancshares's payout ratio is 30.38%.

Institutional Trading of Community West Bancshares

Large investors have recently added to or reduced their stakes in the business. State of Alaska Department of Revenue raised its holdings in shares of Community West Bancshares by 53.3% during the 3rd quarter. State of Alaska Department of Revenue now owns 1,147 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 399 shares in the last quarter. Legal & General Group Plc bought a new stake in Community West Bancshares in the second quarter worth $64,000. PNC Financial Services Group Inc. boosted its holdings in Community West Bancshares by 56.3% in the first quarter. PNC Financial Services Group Inc. now owns 4,188 shares of the financial services provider's stock worth $98,000 after purchasing an additional 1,508 shares in the last quarter. Allworth Financial LP acquired a new position in Community West Bancshares during the second quarter worth $198,000. Finally, Mraz Amerine & Associates Inc. acquired a new position in Community West Bancshares during the second quarter worth $222,000. 33.80% of the stock is owned by institutional investors.

About Community West Bancshares

Community West Bancshares is a California bank holding company and the parent of Community West Bank. The bank provides commercial and personal banking services, including deposit accounts, cash management, and lending for businesses and individuals. Its lending activities include commercial and commercial real estate loans, agricultural financing, Small Business Administration lending, and residential mortgage loans. Community West Bank serves communities across California's Central Coast and Central Valley.

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