Stock of the Day

July 31, 2024

East West Bancorp (EWBC)

$126.86
-$2.58 (-2.0%)
Market Cap: $17.73B

About East West Bancorp

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. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company's loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction finance, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, loan syndication, and equipment financing, as well as financing services for clients to facilitate their business transactions between the United States and Asia. It also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.

Today's Trend

East West Bancorp, Inc. (NASDAQ: EWBC) has benefited from a generally positive analyst outlook, with the stock trading near its 52-week high. The main support comes from higher earnings expectations, while a director’s share sale provides a modest counterpoint.

  • Zacks Research raised multiple EPS forecasts for EWBC. The firm increased its FY2026 estimate to $10.57 from $10.40, FY2027 to $11.14 from $10.58, and FY2028 to $11.93 from $11.79. It also lifted estimates for several upcoming quarters, suggesting expectations for stronger profitability. The FY2026 forecast is close to the $10.59 consensus estimate.
  • Wells Fargo maintained a Buy rating on East West Bancorp. Continued support from a major bank analyst reinforces the favorable Wall Street view and may help sustain investor demand. The broader analyst consensus is Moderate Buy, with an average price target of $141.77. Wells Fargo remains a Buy on East West Bancorp
  • East West Bancorp’s dividend supports the investment case. The company declared a quarterly dividend of $0.80, equivalent to $3.20 annually and a yield of approximately 2.4%. Its payout ratio of about 31% indicates room for continued distributions, assuming earnings remain healthy.
  • Recent operating results provide a strong backdrop. EWBC’s latest quarterly earnings exceeded estimates, with EPS of $2.63 versus the $2.61 consensus and revenue of $789.98 million. Revenue increased 12.5% year over year, while net margin and return on equity remained robust.
  • Director Jack Liu sold 1,000 shares at an average price of $135.02 for approximately $135,020. He retained 13,709 shares, making the transaction relatively small, but insider selling can modestly pressure sentiment. East West Bancorp insider sale