In a recent transaction filed with the Securities and Exchange Commission, Lester Sussman, a director at East West Bancorp Inc. (NASDAQ:EWBC), sold 1,000 shares of the company's common stock. The shares were sold at a price of $105.94 each, totaling $105,940. Following this transaction, Sussman retains ownership of 23,573 shares in the company. This move is part of the ongoing financial activities disclosed by company insiders, offering investors insights into the trading behaviors of key personnel within the firm.
In other recent news, East West Bancorp has shown impressive financial growth in its third-quarter earnings report. The company reported operational earnings per share (EPS) at $2.14, surpassing both Stephens' estimate of $2.08 and the consensus estimate of $2.06. This led to Stephens and BofA Securities raising their price targets on the company's shares to $104 and $110 respectively.
The bank's pre-provision net revenue (PPNR), excluding amortization, showed a 4.5% increase. This was attributed to a 2.3% net interest income (NII) beat, a 3.2% fee income beat, and a 1.2% core expense beat. The company's CEO, Dominic Ng, also announced a net income of $299 million in the third-quarter earnings call.
Recent developments include a $20 million (4%) increase in the bank's net interest income from the previous quarter and a record fee income of $81 million, up 6% quarter-over-quarter. The bank anticipates a full-year loan growth of 2% to 4% and a similar decline in net interest income. East West Bancorp continues to prioritize long-term stability and shareholder value.
InvestingPro Insights
East West Bancorp Inc. (NASDAQ:EWBC) has been demonstrating strong financial performance, as reflected in recent InvestingPro data. The company's market capitalization stands at $14.18 billion, with a P/E ratio of 12.86, indicating a potentially attractive valuation relative to its earnings. This valuation metric aligns with the recent insider selling activity, as directors may be taking advantage of the stock's current price levels.
InvestingPro Tips highlight that EWBC has maintained dividend payments for 26 consecutive years and has raised its dividend for 7 consecutive years. This consistent dividend policy underscores the company's financial stability and commitment to shareholder returns, which may be particularly appealing to income-focused investors.
The company's stock has shown remarkable performance, with a one-year price total return of 84.58% and a strong return over the last three months of 30.26%. These figures suggest that the stock has been outperforming, which could explain the timing of Director Sussman's decision to sell a portion of his holdings.
It's worth noting that 10 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about EWBC's future financial performance. This optimism is further supported by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips on EWBC, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.