Kim Lisa L., Executive Vice President at East West Bancorp Inc. (NASDAQ:EWBC), recently sold 3,379 shares of the company's common stock. The transaction, which took place on November 7, was executed at a weighted average price of $103.59 per share, totaling approximately $350,030. Following this sale, Kim retains ownership of 15,512 shares in the company.
In other recent news, East West Bancorp has been delivering strong financial performance. The company's third-quarter earnings report showed an operational earnings per share (EPS) of $2.14, outperforming both Stephens' estimate of $2.08 and the consensus estimate of $2.06. This impressive performance led Stephens and BofA Securities to maintain positive ratings on East West Bancorp, raising their price targets to $104 and $110, respectively.
The company's CEO, Dominic Ng, reported a net income of $299 million, or $2.14 per diluted share, marking a 1% quarter-over-quarter increase in average loans and a 3% rise in average deposits. These recent developments also 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. Analysts had expressed concerns prior to the earnings release that East West Bancorp might experience a greater mismatch between deposit and asset repricing compared to its peers. Nevertheless, the third-quarter results demonstrated a better-than-expected pace of repricing, both in the third quarter and into the fourth quarter to date, as well as stronger-than-anticipated balance sheet growth. This led to the reaffirmation of the company's net interest income guidance.
InvestingPro Insights
East West Bancorp Inc. (NASDAQ:EWBC) has been demonstrating strong financial performance, which adds context to the recent insider sale by Executive Vice President Kim Lisa L. According to InvestingPro data, EWBC's stock has shown remarkable resilience, with a 1-year price total return of 84.58% as of the most recent quarter. This impressive gain aligns with the InvestingPro Tip highlighting the company's "Strong return over the last five years."
The bank's financial health appears robust, with a P/E ratio of 12.86, suggesting that the stock may be undervalued compared to its earnings. This valuation metric is particularly interesting when considering another InvestingPro Tip that notes EWBC "Has raised its dividend for 7 consecutive years," indicating a commitment to shareholder returns.
Moreover, EWBC's dividend yield stands at 2.16%, with a notable dividend growth of 14.58% over the last twelve months. This dividend performance is reinforced by the InvestingPro Tip stating that the company "Has maintained dividend payments for 26 consecutive years," which may be attractive to income-focused investors.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for EWBC, providing a deeper understanding of the company's financial position and market performance.
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