Douglas Paul Krause, Vice Chairman of East West Bancorp Inc. (NASDAQ:EWBC), has recently sold a substantial portion of his holdings in the company. According to a recent filing, Krause sold a total of 12,000 shares of common stock on November 12, 2024. The shares were sold at prices ranging from $106.50 to $106.73 per share, totaling approximately $1.28 million.
Following these transactions, Krause's direct ownership stands at 45,403 shares. Additionally, he holds 27,023 shares indirectly through a 401(k) plan. These sales are part of regular transactions reported to the Securities and Exchange Commission, providing transparency to investors about insider activities.
In other recent news, East West Bancorp has reported notable developments in its financial performance. The company's third-quarter operational earnings per share (EPS) came in at $2.14, surpassing both Stephens' estimate of $2.08 and the consensus estimate of $2.06. This strong performance led Stephens to raise the price target on the bank's shares to $104.00, up from $91.00, while maintaining its Overweight rating. BofA Securities also showed confidence in the bank by maintaining a Buy rating and raising the price target to $110 from $99.
Furthermore, the bank's pre-provision net revenue (PPNR), excluding amortization, showed a 4.5% increase, attributed to a 2.3% net interest income (NII) beat, a 3.2% fee income beat, and a 1.2% core expense beat. CEO Dominic Ng announced 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. East West Bancorp continues to navigate the current economic landscape effectively, prioritizing long-term stability and shareholder value.
InvestingPro Insights
As Douglas Paul Krause reduces his stake in East West Bancorp Inc. (NASDAQ:EWBC), investors might find it valuable to consider additional financial metrics and expert insights. According to InvestingPro data, EWBC's market capitalization stands at $14.81 billion, with a P/E ratio of 13.39, suggesting a relatively modest valuation compared to industry peers.
Notably, EWBC has demonstrated strong financial performance, with a 9.72% quarterly revenue growth in Q3 2024 and an impressive operating income margin of 65.1% over the last twelve months. These figures indicate the bank's ability to generate profits efficiently, which may be reassuring to shareholders despite the insider sale.
InvestingPro Tips highlight that EWBC has raised its dividend for 7 consecutive years and maintained dividend payments for 26 consecutive years. This consistent dividend policy underscores the company's financial stability and commitment to shareholder returns. Moreover, the stock has shown significant momentum, with a 94.06% price total return over the past year and is currently trading near its 52-week high.
While Krause's sale might raise questions, it's worth noting that 10 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for EWBC's future performance. Investors seeking a more comprehensive analysis can find additional insights among the 13 tips available on InvestingPro, offering a deeper understanding of EWBC's financial health and market position.
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