East West Bancorp, Inc. (NASDAQ:EWBC) has received a consensus recommendation of “Moderate Buy” from a group of fifteen brokerage firms monitoring the company, according to Marketbeat.com. While one analyst has issued a sell rating, three have assigned a hold rating, and ten analysts have rated the stock as a buy. One firm has even given it a strong buy rating. The average twelve-month price target among these brokerages stands at $124.00.
Recent Analyst Activity
Several research firms have recently expressed their views on East West Bancorp. Cowen began coverage on the company with a “buy” rating on September 24, 2023. Following this, Citigroup increased its price target on the stock from $124.00 to $134.00, reaffirming a “buy” rating on September 8, 2023. Zacks Research upgraded East West Bancorp from a “hold” to a “strong buy” rating on October 24, 2023.
In another notable shift, Wall Street Zen raised its rating from sell to hold on October 11, 2023. Truist Financial also adjusted its price target, increasing it from $112.00 to $116.00 while maintaining a “hold” rating as of October 23, 2023.
Quarterly Earnings and Dividend Announcement
East West Bancorp recently released its quarterly earnings results on December 11, 2023. The company reported earnings per share (EPS) of $2.08, showcasing a return on equity of 15.55% and a net margin of 27.16%. The revenue for the quarter amounted to $627.36 million. Analysts forecast an EPS of 8.85 for the current fiscal year.
In addition to its financial results, East West Bancorp announced a quarterly dividend of $0.60, paid on November 17, 2023. This dividend translates to an annualized figure of $2.40, yielding 2.1%. The ex-dividend date was set for November 3, 2023, and the company’s dividend payout ratio currently stands at 26.46%.
Insider Trading Activity
Recent insider transactions have also garnered attention. Vice Chairman Douglas Paul Krause sold 10,000 shares at an average price of $100.04 on November 3, 2023, amounting to $1,000,400. Following this transaction, Krause holds 45,500 shares valued at approximately $4.55 million, marking an 18.02% reduction in his stake.
Additionally, CEO Dominic Ng sold 30,000 shares on December 12, 2023, for a total of $3,408,900 at an average price of $113.63. Post-sale, Ng retains ownership of 858,314 shares worth around $97.53 million, reflecting a decrease of 3.38% in his position. In total, insiders have sold 53,344 shares valued at $5,892,425 over the past ninety days, with corporate insiders owning 1.04% of the stock.
Institutional Investments
The company has also seen a notable influx of institutional investments. In the third quarter, Foster Dykema Cabot & Partners LLC purchased a new stake valued at approximately $26,000. Other firms, including Park Place Capital Corp and Kelleher Financial Advisors, also made new investments in the company during the second and third quarters, respectively. Currently, institutional investors hold 89.53% of East West Bancorp’s stock.
About East West Bancorp
East West Bancorp, Inc. functions as the bank holding company for East West Bank, providing a variety of personal and commercial banking services to both individuals and businesses across the United States. The company operates through three primary segments: Consumer and Business Banking, Commercial Banking, and Other.
As East West Bancorp continues to navigate the financial landscape, the recent ratings and transactions highlight ongoing confidence among analysts and investors in the company’s performance and strategic direction.
