East West Bancorp Inc. (EWBC) shares are trading at lower $43.74 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $44.20.
To add more color to this target, the company’s high over the last year is $51.88 and the low is $22.55. Over the last 52 weeks, EWBC is down -5.53% while the S&P 500 is up 15.29%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, EWBC reported a profit of $324.13 million. East West Bancorp Inc. also saw revenues increase to $365.73 million. In addition, EWBC has free cash flow of $428.35 million as of 09-2020.
EWBC booked profit margins of 39.00%, its Return on Equity (ROE) is 13.20%, and its Return on Assets is 1.40%. All told, it is clear that, EWBC needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EWBC has a short ratio of 3.89 and outstanding shares of 141.49M.
EWBC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.22 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.11. Investors should also keep an eye on sector updates as EWBC has historically followed its peers on positive news.
All told, East West Bancorp Inc. EWBC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EWBC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
East West Bancorp Inc. EWBC is now commanding a market cap of 6.45B and a float of 140.51M. EWBC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EWBC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in EWBC, either long or short, and we have not been compensated for this article.