TD Cowen Begins Coverage on East West Bancorp (NASDAQ:EWBC)

Key Points

• TD Cowen has initiated coverage on East West Bancorp (NASDAQ:EWBC) with a buy rating and a target price of $139.00, suggesting a potential upside of 31.43% from the stock's previous close.
• East West Bancorp reported a quarterly earnings per share of $2.28, exceeding analysts' expectations of $2.23 and showing a 10.3% increase in revenue compared to the same quarter last year.
• Insider selling activity has been noted, with significant sales by the CEO and EVP, indicating a decrease in their positions, which may raise concerns among investors.

Equities research analysts at TD Cowen assumed coverage on shares of East West Bancorp (NASDAQ:EWBC - Get Free Report) in a research report issued on Thursday. The firm set a "buy" rating and a $139.00 price target on the financial services provider's stock. TD Cowen's target price would indicate a potential upside of 31.43% from the company's previous close.

Other equities analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of East West Bancorp from a "hold" rating to a "sell" rating in a report on Sunday, August 3rd. DA Davidson raised their price objective on shares of East West Bancorp from $115.00 to $125.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Wells Fargo & Company increased their target price on shares of East West Bancorp from $100.00 to $125.00 and gave the company an "overweight" rating in a research report on Thursday, July 10th. Barclays raised their price objective on shares of East West Bancorp from $110.00 to $135.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Finally, Piper Sandler lifted their price target on shares of East West Bancorp from $100.00 to $104.00 and gave the company a "neutral" rating in a research report on Monday, September 8th. Ten research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $118.13.

East West Bancorp Price Performance

EWBC stock opened at $105.76 on Thursday. The stock has a 50-day moving average price of $104.69 and a two-hundred day moving average price of $95.50. The stock has a market cap of $14.58 billion, a PE ratio of 12.36, a price-to-earnings-growth ratio of 1.44 and a beta of 0.97. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.43. East West Bancorp has a 1 year low of $68.27 and a 1 year high of $113.95.

East West Bancorp (NASDAQ:EWBC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $2.28 earnings per share for the quarter, beating the consensus estimate of $2.23 by $0.05. The company had revenue of $705.00 million during the quarter, compared to analysts' expectations of $702.04 million. East West Bancorp had a return on equity of 15.09% and a net margin of 26.06%.East West Bancorp's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.07 EPS. Equities analysts forecast that East West Bancorp will post 8.85 EPS for the current fiscal year.

Insider Buying and Selling at East West Bancorp

In other news, EVP Gary Teo sold 6,550 shares of the stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $106.47, for a total transaction of $697,378.50. Following the completion of the sale, the executive vice president owned 12,235 shares of the company's stock, valued at approximately $1,302,660.45. This represents a 34.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Dominic Ng sold 40,000 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $103.38, for a total value of $4,135,200.00. Following the completion of the sale, the chief executive officer directly owned 888,314 shares of the company's stock, valued at $91,833,901.32. The trade was a 4.31% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 70,240 shares of company stock valued at $7,379,678. 1.04% of the stock is owned by insiders.

Hedge Funds Weigh In On East West Bancorp

A number of institutional investors have recently added to or reduced their stakes in EWBC. Wealth Enhancement Advisory Services LLC raised its holdings in East West Bancorp by 922.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 44,633 shares of the financial services provider's stock worth $4,274,000 after purchasing an additional 40,267 shares in the last quarter. 111 Capital purchased a new stake in shares of East West Bancorp during the fourth quarter valued at $273,000. Versant Capital Management Inc boosted its position in shares of East West Bancorp by 89.7% during the first quarter. Versant Capital Management Inc now owns 518 shares of the financial services provider's stock valued at $46,000 after buying an additional 245 shares during the last quarter. GAMMA Investing LLC boosted its position in East West Bancorp by 10,357.5% in the first quarter. GAMMA Investing LLC now owns 367,477 shares of the financial services provider's stock worth $32,985,000 after purchasing an additional 363,963 shares during the last quarter. Finally, 180 Wealth Advisors LLC boosted its position in East West Bancorp by 17.0% in the first quarter. 180 Wealth Advisors LLC now owns 13,593 shares of the financial services provider's stock worth $1,220,000 after purchasing an additional 1,976 shares during the last quarter. Institutional investors own 89.53% of the company's stock.

East West Bancorp Company Profile

East West Bancorp, Inc operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other.

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