Brandywine Global Investment Management LLC has decreased its stake in East West Bancorp, Inc. (NASDAQ: EWBC) by 2.6%, according to a recent filing with the Securities and Exchange Commission (SEC). After selling 1,800 shares during the second quarter, Brandywine now holds 67,238 shares valued at approximately $6,790,000.
This recent decision follows a trend among institutional investors and hedge funds adjusting their positions in East West Bancorp. In the first quarter, Picton Mahoney Asset Management significantly increased its ownership by 1,971.4%, acquiring an additional 276 shares to bring its total to 290 shares, valued at $26,000. Other firms, including Park Place Capital Corp and WPG Advisers LLC, have also entered new positions, with investments valued at $27,000 and $28,000, respectively. Notably, hedge funds and institutional investors now hold approximately 89.53% of East West Bancorp’s stock.
Insider Trading Activity
In related news, insider trading has seen activity from key executives. On September 8, Irene H. Oh sold 7,639 shares at an average price of $109.40, totaling $835,706.60. Following this sale, Oh owns 105,714 shares valued at $11,565,111.60, marking a 6.74% decline in her ownership.
Additionally, Director Molly Campbell sold 1,000 shares on November 11 for an average price of $105.40, amounting to $105,400. Post-transaction, Campbell holds 9,076 shares valued at $956,610.40, reflecting a 9.92% decrease in ownership. Over the last quarter, corporate insiders have sold a total of 42,220 shares worth $4,446,488, while insiders collectively own 1.04% of the company.
Financial Performance and Dividends
East West Bancorp recently reported its quarterly earnings on December 11, revealing earnings per share (EPS) of $2.08. The company achieved a return on equity of 15.55% and a net margin of 27.16%, with total revenue for the quarter reaching $627.36 million. Analysts project that East West Bancorp will post an EPS of $8.85 for the current fiscal year.
The firm also announced a quarterly dividend of $0.60 per share, paid on November 17, to investors recorded on November 3. This results in an annualized dividend of $2.40 and a dividend yield of 2.3%. The company’s dividend payout ratio stands at 26.46%.
Analysts have varied opinions on East West Bancorp’s stock. Recent reports indicate that Wall Street Zen upgraded its rating from “sell” to “hold” as of October 11. Weiss Ratings also upgraded the stock from “hold (c+)” to “buy (b-)” on November 17. Zacks Research has given it a “strong-buy” rating, while Cowen initiated coverage with a “buy” rating. As of now, one analyst rates it as a strong buy, eleven as buy, four as hold, and one as sell. MarketBeat reports an average rating of “Moderate Buy” with a target price of $124.08.
East West Bancorp operates as the bank holding company for East West Bank, providing a range of personal and commercial banking services across the United States. The company functions through three segments: Consumer and Business Banking, Commercial Banking, and Other.
