DA Davidson's Q4 Earnings Forecast for East West Bancorp (EWBC)

East West Bancorp, Inc. (NASDAQ:EWBC) has recently been in the spotlight as DA Davidson has provided their estimates for the fourth-quarter earnings for 2024. This report was made public on October 24th, where DA Davidson analyst G. Tenner projected that the financial services company will achieve earnings per share (EPS) of $2.17 during the quarter.

Alongside this estimate, DA Davidson has reaffirmed a “Buy” rating on East West Bancorp shares, with a specific price target set at $107.00. This suggests a positive outlook for the stock, especially in contrast to the consensus estimate for the company's full-year earnings, which stands at $8.20 per share.

Recent Quarterly Earnings Performance

Prior to this forecast, East West Bancorp reported its quarterly earnings on October 22nd. The company announced an EPS of $2.09, which exceeded analysts' expectations of $2.06, surpassing them by $0.03. This performance showed a healthy net margin of 25.40% and a return on equity of 16.64%. Revenue for the quarter reached $1.16 billion, significantly higher than the analysts' predictions of $641.80 million. In comparison, during the same quarter last year, the company had an EPS of $2.02.

Analyst Ratings and Price Targets

East West Bancorp has received various recommendations from other research firms as well. For example, Jefferies Financial Group reduced their price target from $94.00 down to $85.00 but maintained a “buy” rating. Meanwhile, Stephens raised their target from $91.00 to $104.00, giving the stock an “overweight” rating. Similarly, Morgan Stanley increased their target from $103.00 to $106.00, while Truist Financial lifted their price objective from $93.00 to $101.00, endorsing a “buy” rating. On the other hand, StockNews.com downgraded shares from a “hold” rating to a “sell” rating. Overall, the consensus rating indicates a “Moderate Buy” based on data from MarketBeat, with an average price target of $99.46.

Current Stock Performance

As of the last trading session, East West Bancorp's stock opened at $95.10. The company's stock performance has shown some volatility with a 50-day moving average of $83.94 and a 200-day moving average of $78.62. The shares have seen a 52-week low of $52.29 and a high of $98.95. The firm has a debt-to-equity ratio of 0.49, indicating a stable financial position.

Institutional Holdings

A significant portion of East West Bancorp’s stock is held by institutional investors, who own about 89.53% of the company. Over the second quarter, CIBC Asset Management Inc increased its stake by 2.8%, while Wealth Enhancement Advisory Services LLC added 3.8% during the same period. Other firms, like Bleakley Financial Group LLC and Northwestern Mutual Wealth Management Co., also saw increases in their holdings.

Insider Transactions

In recent months, insider trading activity has been noted. For instance, EVP Lisa L. Kim sold 6,000 shares at an average price of $78.68, totaling approximately $472,080. Following this, she continues to hold 18,891 shares. Similarly, Director Jack C. Liu sold 2,000 shares for $167,000. Such insider transactions are often monitored by investors as they can reflect the confidence or concerns of company executives.

Dividend Announcement

East West Bancorp has also announced it will distribute a quarterly dividend of $0.55, which is payable on November 15th to shareholders recorded by November 4th. This translates to an annualized dividend of $2.20, yielding approximately 2.31%, with a payout ratio of about 27.71%.

Company Profile

East West Bancorp operates as the holding company for East West Bank, offering a variety of personal and commercial banking services throughout the United States. The company segments its operations into Consumer and Business Banking, Commercial Banking, and Other services.

EWBC, Earnings, Forecast