It is better to sell EWBC stock as it faces significant headwinds from insider selling, bearish technical indicators, and mixed institutional sentiment. The stock's oversold condition might present a rebound opportunity, but caution is advised due to negative momentum and market conditions.

What is price prediction 2025 for EWBC Stock?

Price Prediction for EWBC Stock in 2025

The price prediction for East West Bancorp (EWBC) stock in 2025 is $97.77, driven by strong earnings growth and a positive outlook.

Bullish Case: EWBC could reach $103.04 if economic conditions improve and the banking sector stabilizes.
Bearish Case: The stock may drop to $82.57 if recession risks materialize and banking sector concerns escalate.

Reasons:

Strong Earnings Growth: EWBC reported record net income of $1.2 billion in 2024, with diluted EPS of $8.33, supported by strong deposit growth and fee income expansion.
Analyst Sentiment: Bank of America lowered its price target to $109 but maintained a Buy rating, citing potential for recovery in the banking sector.
Technical Support: Fibonacci levels suggest strong support at $82.57 and resistance at $95.22, with a pivot point at $90.39.

What is surpport and resistant level for EWBC Stock?

The S1 support level for EWBC Stock is $84.19 ,The R1 resistant level for EWBC Stock is $94.16.

What is the current price of EWBC Stock?

As of the end of day on 2025-03-17, the price of EWBC Stock was $88.3.

What is the target price of EWBC Stock?

The target price for EWBC Stock according to analyst rating is 117.67, with the highest price target at 128.00 and the lowest at 97.00. Analysts have a Moderate Buy rating on EWBC Stock overall.

What is the market cap of East West Bancorp Inc?

The market cap of EWBC is $12.2B.

Is East West Bancorp Inc (EWBC) overvalued?

Analysis and Insights

To determine if East West Bancorp (EWBC) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

P/E Ratio: EWBC's P/E ratio is approximately 10.44 (Q3 2024), which is reasonable compared to industry peers.
EV/EBITDA: The EV/EBITDA ratio is around 6.28, indicating moderate valuation.
P/B Ratio: The P/B ratio of 1.57 suggests the stock is priced near its book value.

Financial Performance:

Revenue Growth: Total revenue increased steadily, reaching $674.422 million in Q4 2024.
Net Income: Net income has been growing, showing strong profitability.
Net Interest Margin: Stable, a positive sign for the bank.

Analyst Sentiment:

Ratings: Analysts maintain a positive outlook, with price targets ranging from $97 to $128.
Recent Adjustments: Some analysts lowered targets due to higher expenses and credit costs.

Insider and Institutional Activity:

Insider Sales: CEO sold shares, but this doesn't necessarily indicate a lack of confidence.
Institutional Movements: Mixed, with a slight increase in positions, showing investor confidence.

Conclusion:

EWBC appears undervalued given its stable financials, reasonable valuation, and positive analyst sentiment. Strong revenue growth and potential margin improvements support this assessment.

What is East West Bancorp Inc (EWBC)'s business?

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.

What is price prediction 2030 for EWBC Stock?

East West Bancorp (EWBC) is expected to reach a price range of $90 to $110 by 2030, driven by its strong financial performance and growth prospects, despite sector-wide challenges. The stock is currently trading at $84.85, with a Fibonacci pivot point at $90.39, suggesting potential upside. Analysts have lowered price targets slightly due to economic concerns but maintain a positive outlook.