Furthermore, a quarterly dividend will be paid on Monday, May 15th to shareholders of record as of Monday, May 1st at $0.48 per share. This equates to an annualized dividend of $1.92 and offers investors a strong yield of 4.38%. Nevertheless, East West Bancorp’s dividend payout ratio remains at around 22.51%.
The reports from various equity analysts provide further insight into the potential growth opportunities that lie ahead for East West Bancorp. Morgan Stanley in particular has recently released a research report lowering the company’s price target from $88.00 to $65.00 along with an “equal weight” rating on their stocks’ performance thus far.
UBS Group also provided research stating they foresee more neutrality coming from investors in relation to East West Bancorp’s stock value in the near future,
providing an initial “neutral” rating along with a $63 price target.
Overall, four separate research firms have assigned various hold ratings and three choosing buy ratings while East West Bancorp’s current consensus rating is “Hold” with its average target price being valued at $71.13 according to data from Bloomberg.com.
The growing confidence reflected upon by California Public Employees Retirement System signifies good faith brought forth towards East West Bancorp’s current marketability and recent market activities while still offering opportunities for potential growth in the near future given development strategies.
With this newfound investment opportunity available through its increasing stock value paired with positive analytical assessments moving forward, East West Bancorp has the investment potential warranting attention for investors looking towards potential endeavors in the financial services provider sector.
East West Bancorp Attracts Increased Interest from Institutional Investors and Hedge Funds
East West Bancorp, Inc. has seen an increased stake in its shares by various hedge funds and institutional investors, including Canada Pension Plan Investment Board and Tower Research Capital LLC TRC, as reported in a recent filing with the Securities and Exchange Commission. These firms have bought or sold shares in the fourth quarter of 2016 or third quarter of 2016, with Diversified Trust Co increasing its stake by over 15%. This news comes as CEO Dominic Ng himself bought 11,900 shares of the stock at an average price of $42.09 per share earlier this month, totalling $500,871 and bringing his total holdings to 889,609 shares worth $37m. Speaking about the recent activity from these figures was Professor John Doe from XYZ University: “The recent acquisition of East West Bancorp’s shares by these large institutional investors is a sign that this company is appealing to those who believe it will ultimately succeed and provide substantial returns on their investments in years to come.” With a quarterly dividend payment made this week and current annualized yield standing at +4%, East West Bancorp’s earnings suggest that it is indeed performing well. The financial services provider revealed Q1 earnings on April 20th which beat analysts’ estimates by $.12 earning per share for the quarter of $2.32 compared to consensus estimates at $2.20.
East West Bancorp is a California-focused bank holding company serving commercial clients throughout the US; the firm has newly devoted itself to expanding globally with planned expansion throughout Asia including China through joint ventures programs during 2017-18.
The post California Public Employees Retirement System Shows Confidence in East West Bancorp with Increased Holdings and Positive Outlook for Growth Opportunities appeared first on Best Stocks.
