East West Bancorp Inc. [EWBC] is -20.39% lower this YTD. Is it still time to buy?

East West Bancorp Inc. [NASDAQ: EWBC] gained 1.12% on the last trading session, reaching $38.77 price per share at the time. The company report on October 22, 2020 that East West Bancorp Reports Net Income for Third Quarter 2020 of $159.5 Million and Diluted Earnings Per Share of $1.12.

East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported its financial results for the third quarter of 2020. For the third quarter of 2020, net income was $159.5 million or $1.12 per diluted share. Third quarter 2020 return on average assets was 1.26% and return on average equity was 12.5%.

“Total deposits grew to a record $41.7 billion as of September 30, 2020, driven by 28% annualized growth in noninterest-bearing demand deposits,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “As of September 30, 2020, demand deposits reached a record $14.9 billion. We are pleased with the strength and quality of the deposit growth.”.

East West Bancorp Inc. represents 141.49 million in outstanding shares, while the company has a total market value of $5.50 billion with the latest information. EWBC stock price has been found in the range of $36.8915 to $39.20.

If compared to the average trading volume of 746.87K shares, EWBC reached a trading volume of 1736983 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about East West Bancorp Inc. [EWBC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EWBC shares is $41.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EWBC stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Piper Sandler have made an estimate for East West Bancorp Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 12, 2020. The new note on the price target was released on April 14, 2020, representing the official price target for East West Bancorp Inc. stock. Previously, the target price had yet another drop from $53 to $31, while Wells Fargo kept a Equal Weight rating on EWBC stock. On February 18, 2020, analysts decreased their price target for EWBC shares from 60 to 53.

The Average True Range (ATR) for East West Bancorp Inc. is set at 1.37, with the Price to Sales ratio for EWBC stock in the period of the last 12 months amounting to 3.07. The Price to Book ratio for the last quarter was 1.10, with the Price to Cash per share for the same quarter was set at 50.49. Price to Free Cash Flow for EWBC in the course of the last twelve months was 10.03.

Trading performance analysis for EWBC stock

East West Bancorp Inc. [EWBC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.35. With this latest performance, EWBC shares gained by 25.67% in over the last four-week period, additionally plugging by 27.66% over the last 6 months – not to mention a drop of -9.77% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for EWBC stock in for the last two-week period is set at 67.02, with the RSI for the last a single of trading hit 75.30, and the three-weeks RSI is set at 62.78 for East West Bancorp Inc. [EWBC]. The present Moving Average for the last 50 days of trading for this stock 35.74, while it was recorded at 37.61 for the last single week of trading, and 36.45 for the last 200 days.

East West Bancorp Inc. [EWBC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and East West Bancorp Inc. [EWBC] shares currently have an operating margin of +41.47. East West Bancorp Inc.’s Net Margin is presently recorded at +33.29.

Return on Total Capital for EWBC is now 14.92, given the latest momentum, and Return on Invested Capital for the company is 12.30. Return on Equity for this stock inclined to 14.28, with Return on Assets sitting at 1.58. When it comes to the capital structure of this company, East West Bancorp Inc. [EWBC] has a Total Debt to Total Equity ratio set at 24.61. Additionally, EWBC Total Debt to Total Capital is recorded at 19.75, with Total Debt to Total Assets ending up at 2.79. Long-Term Debt to Equity for the company is recorded at 21.44, with the Long-Term Debt to Total Capital now at 17.20.

Reflecting on the efficiency of the workforce at the company, East West Bancorp Inc. [EWBC] managed to generate an average of $204,253 per employee.

East West Bancorp Inc. [EWBC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, East West Bancorp Inc. posted 1.17/share EPS, while the average EPS was predicted by analysts to be reported at 1.2/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -2.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for EWBC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for East West Bancorp Inc. go to 8.00%.

An analysis of insider ownership at East West Bancorp Inc. [EWBC]

There are presently around $5,028 million, or 94.10% of EWBC stock, in the hands of institutional investors. The top three institutional holders of EWBC stocks are: BLACKROCK INC. with ownership of 13,978,434, which is approximately -8.267% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 13,618,556 shares of the stock with an approximate value of $527.99 million in EWBC stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $439.73 million in EWBC stock with ownership of nearly 41.178% of the company’s market capitalization.

Positions in East West Bancorp Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 148 institutional holders increased their position in East West Bancorp Inc. [NASDAQ:EWBC] by around 12,968,296 shares. Additionally, 193 investors decreased positions by around 10,258,333 shares, while 35 investors held positions by with 106,468,182 shares. The mentioned changes placed institutional holdings at 129,694,811 shares, according to the latest SEC report filing. EWBC stock had 45 new institutional investments in for a total of 1,076,733 shares, while 51 institutional investors sold positions of 1,982,453 shares during the same period.

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