East West Bancorp CEO sells $1.82 million in stock

East West Bancorp Inc. (NASDAQ:EWBC), a $12.35 billion financial institution trading at a P/E ratio of 10.66, saw its Chief Executive Officer Dominic Ng recently sell a significant portion of his holdings in the company. According to InvestingPro data, the stock currently trades at $89.08, showing strong returns over the past five years. According to a regulatory filing, Ng sold 20,181 shares of East West Bancorp common stock on March 7 at an average price of $90.01 per share. The total value of the transaction amounted to approximately $1.82 million. The company maintains a solid 2.69% dividend yield and has maintained dividend payments for 27 consecutive years.

Following this sale, Ng retains direct ownership of 988,133 shares. Additionally, he holds 7,586 shares indirectly through a 401(k) plan. The transaction was executed under a pre-established Rule 10b5-1 trading plan, which Ng adopted on November 20, 2024. For deeper insights into EWBC’s valuation and more exclusive financial metrics, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, East West Bancorp reported its fourth-quarter earnings, which narrowly missed analyst expectations, with net income recorded at $293 million, or $2.10 per diluted share, compared to the anticipated $2.11 per share. However, the company’s revenue exceeded expectations, reaching $675.79 million against a consensus estimate of $658.3 million. For the full year 2024, East West Bancorp reported a net income of $1.2 billion, or $8.33 per diluted share, which marks an increase from $8.18 per share in 2023. The bank experienced significant deposit growth, with an increase of over $7 billion in deposits for the year, and fee income rose by 12% year-over-year. Additionally, East West Bancorp announced a 9% increase in its common stock dividend and authorized a $300 million share repurchase. Fitch Ratings upgraded the Long-Term Issuer Default Ratings for East West Bancorp to ’BBB+’ from ’BBB’, citing strong earnings power and robust capital levels. The rating agency noted that East West Bancorp maintains profitability levels above its peers despite potential risks. Fitch also highlighted the bank’s stable core funding base and lending opportunities due to its unique position as a Chinese-American affinity bank.

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