Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis for EWBC:

Technical Analysis

• Current price: $94.32 (Regular market trading, +0.46%)
• RSI-14 at 34.50 indicates oversold conditions
• MACD showing bearish momentum with -1.00 and negative histogram
• Trading below its 20-day SMA ($100.18) and 60-day SMA ($100.78)

Recent Price Action

• Stock has experienced significant selling pressure, falling from recent highs around $100
• Currently testing Fibonacci support level at $94.73
• Next major support at $92.69 if current level breaks

Institutional Activity

• Notable institutional holders include:
  • Himalaya Management (6.19% position)
  • Basswood Capital Management (1.52% position)
• Recent institutional selling pressure observed

Insider Transactions

• Recent insider sales:
  • Director Jack Liu sold 2,000 shares at $83.50 (August 23)
  • EVP Gary Teo sold 3,450 shares at $87.73 (July 26)

Market Sentiment

• Stock showed weakness after Q4 earnings miss
• Pre-market decline of 6.6% was observed after the earnings release

Recommendation Based on the technical indicators showing oversold conditions but continued bearish momentum, along with recent institutional and insider selling, it would be prudent to SELL EWBC at current levels. The stock appears vulnerable to further downside with next support at $92.69.

Based on the available data and market analysis, here is the price prediction for EWBC stock in 2025:

Technical Analysis: The stock is currently trading around $94-95 range, showing a consolidation pattern after declining from recent highs above $100. Key technical indicators suggest:

• RSI (14) at 34.50 indicates oversold conditions
• MACD showing bearish momentum with -1.00
• Stock trading below its 20-day SMA of $100.18
• Support levels at $92.12 (lower Bollinger Band)
• Resistance at $108.25 (upper Bollinger Band)

Price Target Analysis: EWBC is expected to reach $105-110 by end of 2025, representing a 10-15% upside from current levels. This projection is supported by:

1. Strong fundamental banking sector outlook for 2025 with expected Fed rate cuts
2. Wall Street's overall bullish market sentiment for 2025, with S&P 500 median target implying 9% upside
3. Technical support levels holding around $92-94 range

The S1 support level for EWBC Stock is $93.15 ,The R1 resistant level for EWBC Stock is $98.63.

As of the end of day on 2025-02-27, the price of EWBC Stock was $93.71.

The target price for EWBC Stock according to analyst rating is 117.80, with the highest price target at 128.00 and the lowest at 97.00. Analysts have a Moderate Buy rating on EWBC Stock overall.

The market cap of EWBC is $13.0B.

Based on the comprehensive data analysis, EWBC appears fairly valued at current levels. The bank reported strong Q4 2024 results with record net income of $1.2 billion and EPS of $8.33, yet faces some near-term headwinds.

Valuation Metrics

• Current P/E: 8.79x
• P/B: 1.45x
• P/S: 3.92x
• EV/EBITDA: 6.03x

These multiples are largely in line with historical averages and peer valuations, suggesting fair valuation.

Recent Performance & Fundamentals

• Revenue grew to $2.61 billion in 2024
• ROE remains healthy at 15.93%
• Strong deposit growth with $7+ billion increase
• Fee income up 12% year-over-year
• Tangible book value per share grew 13% to $52.39

Technical Analysis

• RSI at 34.50 indicates neutral-to-oversold conditions
• Trading below 20-day SMA of 100.18
• Support around 92.12 and resistance at 108.25
• MACD showing slightly bearish momentum

Key Considerations

• Loan growth remains sluggish at 1-4%
• Asset-sensitive balance sheet could face pressure if rates decline sharply
• Strong deposit franchise with improving cost of deposits
• Solid dividend growth with 15.83% 5-year CAGR

The stock appears appropriately priced given its strong fundamentals balanced against near-term growth headwinds and interest rate sensitivity. The current price of $94.39 reflects fair value based on both technical and fundamental factors.

East West Bancorp, Inc. is a bank holding company that offers a range of banking services to individuals and businesses through its subsidiary, East West Bank (the Bank) and others. The Company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The Consumer and Business Banking segment provides financial products and services to consumer and commercial customers through the Company’s domestic branch network. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. The Commercial Banking segment primarily generates commercial loans and deposits. Commercial loan products include commercial business loans and lines of credit, trade finance loans and letters of credit, commercial real estate (CRE) loans, construction and land loans, affordable housing loans and letters of credit, asset-based lending and others. The Bank operates in over 120 locations in the United States and China.

Based on the technical analysis and fundamental data, East West Bancorp (EWBC) stock is projected to reach $165-175 by 2030, representing a 75-85% increase from current levels around $94.39. The forecast is supported by EWBC's strong financial metrics including P/E of 11.5x and healthy dividend yield of 2.3%, along with its strategic position in the US-China banking corridor. Technical indicators showing oversold conditions (RSI at 34.50) suggest current price levels offer an attractive entry point for long-term growth potential.

EWBC has a total of 3206 employees.