How Is East West Bancorp Inc. (EWBC)’s Price-To-Earnings Ratio?


As of Friday close, East West Bancorp Inc.’s (NASDAQ:EWBC) stock was down -$3.77, moving down -6.46 percent to $54.62. The average number of shares traded per day over the past five days has been 5,831,080 shares. 2 times new highs have been achieved over the past 5 days, with a -$8.09 fall in that time frame. In the last twenty days, the average volume was 2,185,965, while in the previous 50 days, it was 1,389,128.

Since last month, EWBC stock retreated -30.40%. Shares of the company fell to $33.86 on 03/13/23, the lowest level in the past month. A 52-week high of $85.32 was reached on 02/02/23 after having rallying from a 52-week low of $33.86. Since the beginning of this year, EWBC’s stock price has dropped by -17.12% or -$11.28, and marked a new high 11 times. However, the stock has declined by -35.98% since its 52-week high.

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EWBC stock investors should be aware that East West Bancorp Inc. (EWBC) stock had its last reported insider trading activity 5 days ago on Mar 13. Oh Irene H, the Chief Financial Officer of the company, purchased of 10,000 shares for $49.51 on Mar 13. It resulted in a $495,130 investment by the insider. LIU JACK C sold 2,000 shares at an average price of $77.00 on Jan 31. The insider now owns 17,136 shares following the transaction. On Nov 14, Vice Chairman KRAUSE DOUGLAS PAUL sold 5,000 shares at $72.43 apiece. The transaction was valued at $362,150.

Valuation Metrics

Right now, East West Bancorp Inc. (EWBC) has a P/E ratio of about 6.89. The stock’s beta is 1.45. Besides these, the trailing price-to-sales (P/S) ratio of 3.53, the price-to-book (PB) ratio of 1.29.

The latest dividend of $0.48 per share was paid out, which is 20.0% more than last year’s $0.40. On Thursday January 26 2023, a $0.08 dividend increase was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.03, and the total debt-to-equity ratio was 0.03. In the year ended December 30, operating margins totaled 85.00%. Based on annual data, EWBC earned $2.05 billion in gross profit and brought in $2.32 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 27.50%. Return on equity (ROE) for the past 12 months was 19.70%.

In East West Bancorp Inc.’s quarter-end financial report for December 30, it reported total debt of $152.4 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected East West Bancorp Inc. to report $2.24 quarterly earnings, the actual figure was $2.37 per share, beating the consensus estimate by 5.80%. The value of shareholders’ equity is $141.0 million.

Technical Picture

This quick technical analysis looks at East West Bancorp Inc.’s (EWBC) price momentum. With a historical volatility rate of 119.19%, the RSI 9-day stood at 25.57% on 17 March.

With respect to its five-day moving average, the current East West Bancorp Inc. price is down by -12.90% percent or -$8.09. At present, EWBC shares trade -29.79% below its 20-day simple moving average and -18.11% percent below its 100-day simple moving average. However, the stock is currently trading approximately -17.93% below its SMA50 and -25.73% below its SMA200.

Stochastic coefficient K was 51.87% and Stochastic coefficient D was 51.55%, while ATR was 5.87. Given the Stochastic reading of 47.57% for the 14-day period, the RSI (14) reading has been calculated as 27.48%. As of today, the MACD Oscillator reading stands at -4.99, while the 14-day reading stands at -9.88.

Analyst Ratings

UBS launched its rating on East West Bancorp Inc. (NASDAQ: EWBC) to a Neutral in a note to investors on March 15, 2023. East West Bancorp Inc. (EWBC) has been rated Overweight by analysts. According to 0 brokerage firms, EWBC is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate East West Bancorp Inc. stock as buy, with 8 recommending it as overweight.

With a median target price of $85.00, the current consensus forecast for the stock is $63.00 – $93.00. Based on these forecasts, analysts predict East West Bancorp Inc. (EWBC) will achieve an average price target of $82.36.


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