Truist Financial Corp Increases Stake in East West Bancorp, Inc.

Truist Financial Corp has boosted its investment in East West Bancorp, Inc. (NASDAQ:EWBC) by 6.1% during the second quarter, as reported in its latest 13F filing with the Securities and Exchange Commission (SEC). After acquiring an additional 1,435 shares, Truist now holds a total of 25,118 shares of the financial services company's stock. The value of Truist's holdings in East West Bancorp amounts to approximately $1,839,000 based on the recent filing.

Several other institutional investors and hedge funds have also made adjustments to their positions in East West Bancorp. For instance, Capital Research Global Investors established a new position valued at $338,142,000 in the first quarter. Jupiter Asset Management Ltd. added a new stake in the second quarter, worth around $59,460,000. Additionally, Lord Abbett & Co. LLC boosted its shareholdings by 112.5% during the first quarter, bringing its total to 1,441,198 shares worth $114,013,000 after acquiring 762,958 shares. Jennison Associates LLC also increased its holdings by 82.2%, now owning 1,687,555 shares valued at $133,502,000 after purchasing an extra 761,347 shares. Furthermore, Miller Howard Investments Inc. NY acquired a new position valued at $39,347,000 in the first quarter. Collectively, institutional investors and hedge funds own 89.53% of East West Bancorp's stock.

Insider Transactions

In the realm of insider trading, Executive Vice President Gary Teo sold 3,450 shares of East West Bancorp on July 26th at an average price of $87.73, resulting in a total transaction of $302,668.50. Following this sale, Teo holds 15,875 shares valued at approximately $1,392,713.75. Meanwhile, Director Rudolph Estrada also sold 1,896 shares on the same day at an average price of $87.77, totaling $166,411.92. Estrada’s holdings decreased to 18,470 shares, now valued at around $1,621,111.90. Over the last quarter, insiders have sold a total of 13,346 shares worth $1,108,160, with insiders owning 1.04% of the company's stock.

Stock Performance Overview

As of Friday, East West Bancorp stock opened at $88.33. The stock has experienced a 1-year low of $50.23 and a high of $89.75. Current moving averages show the 50-day at $80.95 and the 200-day at $77.48. The company's market capitalization stands at $12.24 billion. It reports a P/E ratio of 11.32, a PEG ratio of 2.08, and a beta of 1.29. Furthermore, East West Bancorp has a debt-to-equity ratio of 0.49, along with a current and quick ratio of 0.92.

East West Bancorp's last earnings report, dated July 23rd, revealed an EPS of $2.07 for the quarter, surpassing analyst estimates of $1.97 by $0.10. Revenue for the quarter reached $638.00 million, exceeding the projected $631.61 million. The company's net margin stands at 25.40%, and its return on equity is 16.64%. Year-over-year, the revenue has decreased by 0.9%. Compared to the same period last year, where the EPS was $2.20, analysts project East West Bancorp to achieve an EPS of 8.2 for the current fiscal year.

Dividend Announcement

The company has also declared a quarterly dividend, which was distributed on August 16th. Shareholders on record as of August 2nd received a dividend of $0.55. The ex-dividend date was also August 2nd. This results in an annualized dividend of $2.20 and a yield of 2.49%. Currently, the company's dividend payout ratio is 28.21%.

Analyst Ratings and Predictions

Recent reports from various analysts highlight their views on East West Bancorp's stock. Piper Sandler raised its price target from $72.50 to $92.00, maintaining a "neutral" rating as of July 24th. Wells Fargo & Company increased its target from $95.00 to $97.00 and assigned an "overweight" rating in an October 1st report. Jefferies Financial Group reduced its target from $94.00 to $85.00 but continues to hold a "buy" rating. DA Davidson increased their price estimate from $92.00 to $100.00, giving the stock a “buy” rating. Truist Financial slightly adjusted its target from $96.00 down to $93.00, retaining a "buy" rating. Presently, two analysts rate the stock as a hold, while twelve recommend it as a buy, leading to a consensus rating of "Moderate Buy" and an average price target of $92.77.

Company Overview

East West Bancorp, Inc. serves as the holding company for East West Bank, offering a variety of personal and commercial banking services to both individuals and businesses in the United States. The company operates across three key segments: Consumer and Business Banking, Commercial Banking, and Other.

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