PASADENA, CA—Oh Irene H, the Chief Risk Officer of East West Bancorp Inc (NASDAQ:EWBC), recently executed a significant stock sale, according to a filing with the Securities and Exchange Commission. On October 29, she sold 10,000 shares of common stock at a weighted average price of $98.50 per share, totaling $985,000.
Following this transaction, Oh Irene H holds 117,193 shares directly, with an additional 2,403 shares held indirectly through a 401(k) plan. This sale represents a strategic move within her portfolio, as she continues to maintain a substantial number of shares in the company.
In other recent news, East West Bancorp has been demonstrating solid financial performance in recent developments. The company's third-quarter earnings per share (EPS) was reported at $2.14, exceeding both Stephens' and consensus estimates. This impressive performance led financial services firm Stephens and BofA Securities to maintain their Overweight and Buy ratings on the bank's stock, respectively, while raising their price targets. The bank's net income was announced as $299 million, reflecting a 1% quarter-over-quarter increase in average loans and a 3% rise in average deposits.
East West Bancorp'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. The bank also reported a $20 million (4%) increase in net interest income from the previous quarter and a record fee income of $81 million, up 6% quarter-over-quarter.
Despite concerns about a potential mismatch between deposit and asset repricing, the bank's third-quarter results displayed a better-than-expected pace of repricing, alongside stronger-than-anticipated balance sheet growth. This led to the reaffirmation of the company's NII guidance. The bank expects a full-year loan growth of 2% to 4% and a similar decline in net interest income. East West Bancorp continues to effectively navigate the current economic landscape, prioritizing long-term stability and shareholder value.
InvestingPro Insights
East West Bancorp Inc (NASDAQ:EWBC) has been showing strong performance indicators, which may provide context for Oh Irene H's recent stock sale. According to InvestingPro data, the company's stock is trading near its 52-week high, with a price at 98.68% of its peak. This aligns with the strong return metrics observed over various timeframes, including an impressive 88.22% total return over the past year.
The bank's financial health appears robust, with a P/E ratio of 12.54, suggesting a relatively attractive valuation compared to earnings. Additionally, EWBC boasts a high shareholder yield and has maintained dividend payments for 26 consecutive years, with a current dividend yield of 2.23%. These factors indicate a company committed to returning value to shareholders.
InvestingPro Tips highlight that EWBC has raised its dividend for 7 consecutive years, demonstrating a consistent track record of increasing shareholder returns. Furthermore, 10 analysts have revised their earnings upwards for the upcoming period, signaling positive expectations for the company's future performance.
It's worth noting that while the company enjoys strong returns and analyst optimism, it also faces challenges such as weak gross profit margins. However, with a market capitalization of $13.86 billion and revenue of $2.41 billion in the last twelve months, EWBC remains a significant player in the banking sector.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for EWBC, providing a deeper understanding of the company's financial position and market outlook.
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