East West Bancorp Inc. (NASDAQ:EWBC) is a prominent financial services company that offers a variety of banking services, primarily in the United States and China. It specializes in commercial banking, retail banking, and wealth management, competing with major financial institutions like Bank of America and Wells Fargo.
On January 28, 2025, LIU JACK C, a director at East West Bancorp, executed a significant transaction by selling 725 shares of the company's common stock at $104.50 each. This sale reduced his holdings to 15,832 shares. This transaction took place against the backdrop of the company's stock price experiencing notable fluctuations, highlighted by a recent 4.2% decline in after-market trading.
The decline in stock price followed the announcement of East West Bancorp's fourth-quarter 2024 earnings, which did not meet analysts' expectations. The adjusted earnings per share (EPS) for the quarter were $2.08, falling short of the Zacks Consensus Estimate of $2.17. Despite this shortfall, the EPS saw a 4% increase compared to the same quarter in the previous year.
The earnings miss was attributed primarily to increased provisions, which adversely affected the results. However, the company benefited from higher net interest income and non-interest income, along with a reduction in non-interest expenses. Additionally, both deposit and loan balances showed sequential growth during the quarter.
Excluding certain items, the net income available to common shareholders was $293.1 million, or $2.10 per share, an increase from $239 million, or $1.69 per share, in the prior-year quarter. For the full year of 2024, the adjusted EPS was $8.30, which also did not meet the Zacks Consensus Estimate. The current stock price of EWBC stands at $103.02, with a market capitalization of approximately $14.28 billion.
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