East West Bancorp (NASDAQ:EWBC) Hits New 1-Year High Following Strong Earnings

East West Bancorp, Inc. (NASDAQ:EWBC)’s stock price hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $124.84 and last traded at $122.8070, with a volume of 627142 shares trading hands. The stock had previously closed at $120.90.

The financial services provider reported $2.57 earnings per share for the quarter, topping the consensus estimate of $2.46 by $0.11. East West Bancorp had a net margin of 28.36% and a return on equity of 15.72%. The firm had revenue of $773.75 million for the quarter, compared to analyst estimates of $767.80 million. During the same quarter in the prior year, the business earned $2.08 earnings per share. East West Bancorp’s quarterly revenue was up 11.8% on a year-over-year basis.

East West Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were issued a dividend of $0.80 per share. The ex-dividend date was Monday, February 2nd. This is a positive change from East West Bancorp’s previous quarterly dividend of $0.60. This represents a $3.20 dividend on an annualized basis and a yield of 2.6%. East West Bancorp’s payout ratio is 33.61%.

East West Bancorp News Roundup

Here are the key news stories impacting East West Bancorp this week:

• Positive Sentiment: Q1 results beat expectations — EWBC reported net income of $358 million and diluted EPS of $2.57 (up 23% YoY), with revenue of $773.8M, beating estimates; management cited record loans and deposits, and improved profitability metrics. Read More.
• Positive Sentiment: Analyst support — Cantor Fitzgerald reaffirmed an “overweight” rating and set a $133 price target (~8% upside from recent levels), providing near-term support for the stock. Read More.
• Positive Sentiment: Market confirmation of the beat — Zacks and MarketBeat summaries highlight the EPS/revenue beat, stronger margins (net margin ~28%) and improved ROE, reinforcing the view that results materially outperformed Street expectations. Read More.
• Neutral Sentiment: Earnings call transcript available for color — The full Q1 call transcript provides management commentary on loan/deposit growth, fee income drivers and margin outlook that traders may parse for forward guidance cues. Read More.
• Neutral Sentiment: Deeper metric analysis — Zacks’ follow-up piece reviews key metrics versus estimates and year-ago levels; useful for assessing sustainability of the quarter’s yields, credit trends and fee-income drivers. Read More.
• Neutral Sentiment: Official slide deck and press materials are posted for investor review, useful for modeling near-term loan/deposit growth and margin trajectory. Read More.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Stephens raised their target price on shares of East West Bancorp from $120.00 to $125.00 and gave the stock an “equal weight” rating in a report on Monday, January 26th. Morgan Stanley cut their target price on shares of East West Bancorp from $141.00 to $128.00 and set an “equal weight” rating for the company in a research report on Tuesday, March 31st. Cantor Fitzgerald reiterated an “overweight” rating and set a $133.00 target price on shares of East West Bancorp in a research report on Wednesday. Truist Financial set a $121.00 target price on shares of East West Bancorp in a research report on Friday, January 23rd. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of East West Bancorp in a research report on Monday, December 29th. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, East West Bancorp currently has a consensus rating of “Moderate Buy” and a consensus price target of $128.00.

Insider Buying and Selling at East West Bancorp

In related news, EVP Gary Teo sold 7,000 shares of the stock in a transaction on Friday, February 6th. The shares were sold at an average price of $122.59, for a total transaction of $858,130.00. Following the completion of the transaction, the executive vice president owned 5,252 shares in the company, valued at approximately $643,842.68. This represents a 57.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Dominic Ng sold 50,000 shares of the stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $117.82, for a total transaction of $5,891,000.00. Following the transaction, the chief executive officer owned 808,331 shares of the company’s stock, valued at $95,237,558.42. The trade was a 5.83% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 60,221 shares of company stock valued at $7,139,287. 1.04% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in EWBC. Foster Dykema Cabot & Partners LLC acquired a new position in East West Bancorp during the third quarter worth $26,000. Atlantic Union Bankshares Corp acquired a new position in East West Bancorp during the fourth quarter worth $31,000. Kelleher Financial Advisors acquired a new position in East West Bancorp during the third quarter worth $31,000. Mather Group LLC. acquired a new position in East West Bancorp during the third quarter worth $38,000. Finally, Wilmington Savings Fund Society FSB boosted its holdings in East West Bancorp by 44.7% during the third quarter. Wilmington Savings Fund Society FSB now owns 366 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 113 shares during the last quarter. Institutional investors and hedge funds own 89.53% of the company’s stock.

East West Bancorp Price Performance

The company has a debt-to-equity ratio of 0.34, a current ratio of 0.89 and a quick ratio of 0.89. The company’s 50-day simple moving average is $111.75 and its 200-day simple moving average is $110.16. The stock has a market capitalization of $16.83 billion, a P/E ratio of 12.90, a price-to-earnings-growth ratio of 1.57 and a beta of 0.90.

About East West Bancorp

East West Bancorp, Inc is a bank holding company and the parent of East West Bank, one of the largest independent banks headquartered in Southern California. As a full-service commercial bank, it provides a broad range of financial products and services to business and individual customers, including commercial and residential real estate lending, working capital lines of credit, trade finance, and deposit and treasury management services. The company caters to both large and middle-market businesses, leveraging its expertise to serve clients engaged in cross-border trade and investment between the United States and Greater China.

Founded in Los Angeles in the early 1970s, East West Bank has grown steadily through organic expansion and strategic branch openings.