East West Bancorp Inc. (NASDAQ:EWBC) disclosed today that its CEO, Dominic Ng, has established a pre-arranged stock trading plan for the sale of up to 120,000 shares of the company's common stock. The plan, compliant with Rule 10b5-1, allows company insiders to set up a trading schedule for selling stocks at a time when they are not in possession of material non-public information.
The trading under this plan is scheduled to start on March 6, 2025, and will end by December 19, 2025. The transactions will be executed on the open market, adhering to predetermined price thresholds. The company stated that the plan was set up during a time when Mr. Ng had no access to inside information and within the company's unrestricted trading window.
East West Bancorp, a commercial banking institution headquartered in Pasadena, California, ensures that any sales made under this plan will be reported to the public via the appropriate SEC filings, including Form 144 and Form 4.
The company has indicated that it is not obligated to report any future Rule 10b5-1 plans that might be adopted by its officers or directors, nor will it necessarily report any changes or terminations to the trading plan unless required by law.
This disclosure is based on the latest 8-K filing by East West Bancorp with the Securities and Exchange Commission. The filing provides transparency regarding the planned financial activities of the company's top executive and adheres to regulatory standards for trading by corporate insiders.
In other recent news, East West Bancorp reported steady growth in its third-quarter earnings. The company's CEO, Dominic Ng, announced a net income of $299 million, or $2.14 per diluted share, marking a 1% quarter-over-quarter increase in average loans and a 3% rise in average deposits. The bank's net interest income saw a $20 million (4%) increase from the previous quarter, and fee income reached a record $81 million, up 6% quarter-over-quarter.
In financial analysis, both Stephens and BofA Securities have raised their price targets for East West Bancorp shares. Stephens increased its target to $104.00, maintaining an Overweight rating, while BofA Securities raised its target to $110 from $99, maintaining a Buy rating. These revisions are based on upward earnings estimates, reflecting a more resilient net interest margin and slightly improved fee revenue growth expectations.
These recent developments reflect East West Bancorp's effective navigation of the current economic landscape, with a focus on long-term stability and shareholder value. The bank expects full-year loan growth of 2% to 4% and a similar decline in net interest income. These updates provide an insight into the company's recent performance and future expectations as projected by financial analysts.
InvestingPro Insights
East West Bancorp's recent disclosure about CEO Dominic Ng's stock trading plan comes at a time when the company is showing strong financial performance. According to InvestingPro data, EWBC has a market capitalization of $14.63 billion and a P/E ratio of 13.24, suggesting a relatively attractive valuation. The company's revenue growth of 3.6% over the last twelve months and a robust operating income margin of 65.1% indicate solid operational efficiency.
InvestingPro Tips highlight that EWBC has raised its dividend for 7 consecutive years and has maintained dividend payments for 26 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a current dividend yield of 2.09% and a dividend growth rate of 14.58% over the last twelve months.
The stock's strong performance is evident from its 75.82% price total return over the past year, and it's currently trading near its 52-week high at 97.98% of that level. These metrics align with the InvestingPro Tip noting EWBC's high return over the last year and its strong recent performance.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for East West Bancorp, providing a deeper understanding of the company's financial health and market position.
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