East West Bancorp, Inc. (NASDAQ: EWBC) has garnered a consensus recommendation of “Moderate Buy” from a group of fifteen brokerages that monitor the company, according to Marketbeat.com. This analysis indicates a mixed sentiment surrounding the stock, with one analyst assigning a sell rating, three advocating for a hold, while ten recommend a buy, and one issuing a strong buy rating.
The average price target for East West Bancorp among analysts who have updated their coverage in the past year stands at $124.00. Recently, several financial institutions provided insights into the stock’s performance. For instance, on September 24, 2023, Cowen initiated coverage on East West Bancorp with a “buy” rating. On September 8, 2023, Citigroup raised its price target from $124.00 to $134.00, maintaining a buy rating. Additionally, Zacks Research upgraded the stock from a hold to a strong buy on October 24, 2023.
Further adjustments were noted when Wall Street Zen elevated their rating from sell to hold on October 11, 2023, while Truist Financial increased their price target from $112.00 to $116.00, also giving the company a hold rating on October 23, 2023.
Financial Performance and Dividend Announcement
East West Bancorp recently reported its quarterly earnings on December 11, 2023, revealing earnings per share (EPS) of $2.08 for the period. The company achieved a return on equity of 15.55% and a net margin of 27.16%, with total revenue reaching $627.36 million for the quarter. Analysts project that East West Bancorp will post an EPS of 8.85 for the current financial year.
Additionally, the bank declared a quarterly dividend of $0.60 per share, paid on November 17, 2023, to investors on record as of November 3, 2023. This translates to an annualized dividend of $2.40, yielding 2.1%. The company’s dividend payout ratio currently stands at 26.46%.
Insider Transactions and Institutional Activity
In terms of insider dealings, Vice Chairman Douglas Paul Krause sold 10,000 shares of East West Bancorp on November 3, 2023, at an average price of $100.04, totaling $1,000,400.00. Following this transaction, Krause retained 45,500 shares, valued at approximately $4,551,820, marking an 18.02% decrease in his holdings. This stock sale has been officially disclosed to the Securities and Exchange Commission.
Furthermore, CEO Dominic Ng sold 30,000 shares on December 12, 2023, at an average price of $113.63, amounting to $3,408,900.00. Post-sale, Ng holds 858,314 shares worth around $97,530,219.82, which reflects a decrease of 3.38% in his ownership.
In the last ninety days, insiders have sold a total of 53,344 shares valued at $5,892,425, with institutional investors owning 89.53% of the stock. Recently, several hedge funds and institutional investors have increased their stakes in East West Bancorp. Foster Dykema Cabot & Partners LLC acquired a new stake valued at approximately $26,000, while Park Place Capital Corp invested around $27,000 in the second quarter.
East West Bancorp, Inc. 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 segments its operations into Consumer and Business Banking, Commercial Banking, and Other services, reflecting its diverse portfolio in the financial services sector.
