Zacks Investment Research lowered shares of East West Bancorp (NASDAQ:EWBC) from a buy rating to a hold rating in a report released on Monday morning.

According to Zacks, “East West Bancorp's shares have underperformed the industry over the past year. Yet, the company has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in three of the trailing four quarters. The bank has been witnessing consistent improvement in loans and deposits, which along with higher interest rates is expected to further aid top-line growth. Also, the company’s enhanced capital deployment plan reflects strong balance sheet position. However, elevated expenses are expected hamper profitability to some extent. Further, worsening credit quality is a major cause of concern. Also, the company’s high exposure to commercial real estate loans might hamper profitability if the real estate sector deteriorates.”

A number of other brokerages have also recently weighed in on EWBC. BidaskClub cut shares of East West Bancorp from a hold rating to a sell rating in a research report on Wednesday, June 27th. Keefe, Bruyette & Woods raised shares of East West Bancorp from a market perform rating to an outperform rating and set a $41.00 price target on the stock in a research report on Friday, July 20th. Barclays reduced their price target on shares of East West Bancorp from $78.00 to $77.00 and set an overweight rating on the stock in a research report on Friday, July 20th. ValuEngine cut shares of East West Bancorp from a buy rating to a hold rating in a research report on Monday, June 11th. Finally, Morgan Stanley lifted their price target on shares of East West Bancorp from $74.00 to $75.00 and gave the stock an equal weight rating in a research report on Tuesday, July 24th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and eight have issued a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $71.38.

Shares of EWBC stock opened at $60.99 on Monday. East West Bancorp has a 52-week low of $55.97 and a 52-week high of $73.98. The company has a market capitalization of $8.98 billion, a price-to-earnings ratio of 15.23, a price-to-earnings-growth ratio of 1.28 and a beta of 1.33. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

East West Bancorp (NASDAQ:EWBC) last announced its quarterly earnings data on Thursday, July 19th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.09. East West Bancorp had a net margin of 34.15% and a return on equity of 15.12%. The firm had revenue of $389.95 million for the quarter, compared to analysts’ expectations of $382.70 million. During the same period last year, the firm earned $0.81 earnings per share. The business’s revenue for the quarter was up 15.6% on a year-over-year basis. equities analysts anticipate that East West Bancorp will post 4.61 earnings per share for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Aristotle Capital Management LLC lifted its position in East West Bancorp by 70.3% in the 1st quarter. Aristotle Capital Management LLC now owns 4,873,367 shares of the financial services provider’s stock valued at $304,780,000 after acquiring an additional 2,011,839 shares in the last quarter. BlackRock Inc. lifted its position in East West Bancorp by 5.0% in the 1st quarter. BlackRock Inc. now owns 14,450,262 shares of the financial services provider’s stock valued at $903,719,000 after acquiring an additional 683,047 shares in the last quarter. Bank of New York Mellon Corp lifted its position in East West Bancorp by 15.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 4,771,173 shares of the financial services provider’s stock valued at $311,079,000 after acquiring an additional 627,329 shares in the last quarter. OppenheimerFunds Inc. lifted its position in East West Bancorp by 129.1% in the 1st quarter. OppenheimerFunds Inc. now owns 935,982 shares of the financial services provider’s stock valued at $58,537,000 after acquiring an additional 527,423 shares in the last quarter. Finally, Ferguson Wellman Capital Management Inc. bought a new stake in East West Bancorp in the 2nd quarter valued at $23,593,000. 88.83% of the stock is currently owned by institutional investors.

East West Bancorp Company Profile

East West Bancorp, Inc operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to small and medium-sized businesses, business executives, professionals, and other individuals in the United States and Greater China. It operates through three segments: Retail Banking, Commercial Banking, and Other.

See Also: Buyback

Get a free copy of the Zacks research report on East West Bancorp (EWBC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for East West Bancorp (NASDAQ:EWBC)

Receive News & Ratings for East West Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for East West Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.