East West Bancorp Receives “Moderate Buy” Rating from Analysts
East West Bancorp, Inc. (NASDAQ:EWBC) has garnered a consensus recommendation of “Moderate Buy” from analysts, according to Marketbeat.com. This assessment comes from a total of fifteen ratings firms that are currently following the company. Among these analysts, one has issued a sell rating, three have assigned a hold rating, and ten have classified the stock as a buy, while one analyst has given it a strong buy rating.
The average twelve-month price target among brokerages that have recently updated their coverage stands at $124.00. Recent evaluations by various research firms provide further insights into East West Bancorp’s market positioning. For instance, Cowen initiated its coverage on the bank on September 24, 2023, assigning a “buy” rating. Citigroup followed suit, increasing its price target from $124.00 to $134.00 in a report dated September 8, 2023. Additionally, Zacks Research upgraded the stock from a hold to a strong buy rating on October 24, 2023.
In a notable shift, Wall Street Zen adjusted its rating for East West Bancorp, moving it from sell to hold on October 11, 2023. Truist Financial also revised their price target, increasing it from $112.00 to $116.00, while maintaining a hold rating as of October 23, 2023.
Recent Financial Performance
East West Bancorp recently announced its quarterly earnings results on December 11, 2023, reporting an earnings per share (EPS) of $2.08 for the quarter. The financial services provider achieved a return on equity of 15.55% and a net margin of 27.16%. Quarterly revenue reached $627.36 million, with projections indicating that the company will post an EPS of $8.85 for the current year.
The bank also declared a quarterly dividend of $0.60, which was paid on November 17, 2023, to investors recorded on November 3, 2023. This dividend translates to an annualized amount of $2.40 and a yield of 2.1%. The ex-dividend date was also set for November 3, and East West Bancorp’s dividend payout ratio currently stands at 26.46%.
Insider Transactions and Institutional Activity
In other developments, Vice Chairman Douglas Paul Krause sold 10,000 shares of the company’s stock on November 3, 2023, at an average price of $100.04, amounting to a total value of $1,000,400.00. Following this transaction, Krause holds 45,500 shares valued at approximately $4,551,820. This sale represents an 18.02% decrease in his position.
Moreover, CEO Dominic Ng sold 30,000 shares on December 12, 2023, at an average price of $113.63, resulting in proceeds of $3,408,900.00. After this sale, Ng retains 858,314 shares in the company, valued at around $97,530,219.82. In total, insiders have sold 53,344 shares valued at $5,892,425 over the past ninety days, with corporate insiders currently owning 1.04% of the stock.
Recent activity among institutional investors highlights a growing interest in East West Bancorp. Several hedge funds have recently acquired shares, including Foster Dykema Cabot & Partners LLC, which purchased a new stake valued at around $26,000 in the third quarter. Other notable acquisitions include Park Place Capital Corp, which invested approximately $27,000, and Kelleher Financial Advisors, which acquired a position valued at approximately $31,000.
As it stands, institutional investors collectively own 89.53% of East West Bancorp’s stock, underscoring the company’s strong institutional backing.
East West Bancorp operates as a bank holding company for East West Bank, offering a variety of personal and commercial banking services across the United States. The company is organized into three segments: Consumer and Business Banking, Commercial Banking, and Other.
