DA Davidson's Q4 Earnings Forecast for East West Bancorp

On October 24th, 2024, DA Davidson released its earnings projections for East West Bancorp, Inc. (NASDAQ:EWBC). Analyst G. Tenner anticipates that the financial services company will report earnings per share (EPS) of $2.17 for the fourth quarter of 2024. In conjunction with this forecast, DA Davidson has maintained a "Buy" rating on the stock, setting a price target of $107.00.

The current consensus for East West Bancorp's total earnings for the full year stands at $8.20 per share. Just a couple of days prior, the company made headlines by announcing its quarterly earnings. On October 22nd, East West Bancorp reported an EPS of $2.09, surpassing the analysts' expectations of $2.06 by a small margin.

The company achieved a net margin of 25.40% and a return on equity of 16.64% during this quarter, with revenue hitting $1.16 billion, significantly above the predictions of $641.80 million. These results mark a growth from last year’s EPS of $2.02 for the same quarter.

Analysts' Views on East West Bancorp

East West Bancorp has experienced various ratings from multiple research firms. For instance, Jefferies Financial Group cut its price target from $94.00 to $85.00 while maintaining a "buy" rating on July 3rd. On the other hand, Stephens raised their price target from $91.00 to $104.00, giving the bank an "overweight" rating.

Moreover, Morgan Stanley adjusted its price target for the stock upwards from $103.00 to $106.00, also classifying it as "overweight." Truist Financial reported a similar increase from $93.00 to $101.00 with a recommendation to "buy." In contrast, StockNews.com adjusted their rating on East West Bancorp from a "hold" to a "sell" on October 21st.

Overall, the research consensus indicates that East West Bancorp is viewed positively, with one analyst assigning a sell rating, one a hold, and twelve giving buy ratings. According to data sourced from MarketBeat, the consensus rating is classified as a "Moderate Buy" and the average price target is around $99.46.

Current Stock Performance

As of Friday, East West Bancorp's stock opened at $95.10. Currently, the shares have a 50-day moving average of $83.94 and a 200-day moving average of $78.62. The stock has seen a low of $52.29 and a high of $98.95 over the past year. In terms of financial ratios, the company has a debt-to-equity ratio of 0.49 and liquidity ratios (quick and current) of 0.92. The market capitalization stands at $13.23 billion, with a price-to-earnings (P/E) ratio of 11.98.

Investor Activity

Recent activity among institutional investors reflects a stable confidence in East West Bancorp. For example, CIBC Asset Management Inc. increased its shares by 2.8% in the second quarter, now holding 4,753 shares valued at $348,000. Similarly, other firms such as Wealth Enhancement Advisory Services LLC and Bleakley Financial Group LLC have also bumped their shares, showing a steady interest in the bank's stock.

Insider Transactions

Insider trading has also been notable. EVP Lisa L. Kim recently sold 6,000 shares at an average price of $78.68, totaling approximately $472,080.00. Meanwhile, Director Jack C. Liu sold 2,000 shares for about $167,000. Despite these sales, insiders continue to hold a minority stake in the company, with 1.04% ownership.

Dividends Announcement

East West Bancorp has communicated that it will declare a quarterly dividend of $0.55, payable on November 15th to shareholders on record as of November 4th. This results in an annualized dividend of $2.20, reflecting a dividend yield of 2.31% and a payout ratio of 27.71%.

Company Overview

East West Bancorp, Inc. operates as a bank holding company for East West Bank. The bank provides a wide array of personal and commercial banking services across the United States. It operates through three key segments: Consumer and Business Banking, Commercial Banking, and Other.

Earnings, Forecast, Banking