East West Bancorp Stock Buy Hold or Sell Recommendation
| EWBC Stock | USD 72.38 0.38 0.52% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding East West Bancorp is 'Hold'. Macroaxis provides East West buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EWBC positions. The advice algorithm takes into account all of East West's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting East West's buy or sell advice are summarized below:
Real Value 69.59 | Target Price 65.75 | Hype Value 72.82 | Market Value 72.38 | Naive Value 73.35 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell East West Bancorp given historical horizon and risk tolerance towards East West. When Macroaxis issues a 'buy' or 'sell' recommendation for East West Bancorp, the advice is generated through an automated system that utilizes algorithms and statistical models.
East |
Execute East West Buy or Sell Advice
The East recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on East West Bancorp. Macroaxis does not own or have any residual interests in East West Bancorp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute East West's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
East West Trading Alerts and Improvement Suggestions
| Over 92.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from MacroaxisInsider: Disposition of 9780 shares by Del Moral-niles Christopher of East West subject to Rule 16b-3 |
East West Returns Distribution Density
The distribution of East West's historical returns is an attempt to chart the uncertainty of East West's future price movements. The chart of the probability distribution of East West daily returns describes the distribution of returns around its average expected value. We use East West Bancorp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of East West returns is essential to provide solid investment advice for East West.
| Mean Return | 0.03 | Value At Risk | -2.72 | Potential Upside | 3.01 | Standard Deviation | 1.79 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of East West historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
East Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as East West is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading East West Bancorp backward and forwards among themselves. East West's institutional investor refers to the entity that pools money to purchase East West's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2023-12-31 | 2.5 M | Schroder Investment Management Group | 2023-12-31 | 2.5 M | Geode Capital Management, Llc | 2023-12-31 | 2.4 M | Macquarie Group Ltd | 2023-12-31 | 2.3 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 1.7 M | Principal Financial Group Inc | 2023-12-31 | 1.7 M | Bank Of New York Mellon Corp | 2023-12-31 | 1.7 M | Norges Bank | 2023-12-31 | 1.6 M | Bank Of Montreal | 2023-12-31 | 1.4 M | Vanguard Group Inc | 2023-12-31 | 14.8 M | Blackrock Inc | 2023-12-31 | 12.9 M |
East West Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 259.8M | 756.8M | (105.0M) | (431.2M) | 1.1B | 1.2B | |
| Free Cash Flow | 726.0M | 690.7M | 1.2B | 2.1B | 1.4B | 1.5B | |
| Depreciation | 144.2M | 119.9M | 156.8M | 159.9M | 163.5M | 171.6M | |
| Other Non Cash Items | 72.3M | 187.4M | 6.2M | 135.6M | 150.5M | 158.1M | |
| Capital Expenditures | 13.8M | 9.9M | 2.7M | 6.0M | 734K | 0.0 | |
| Net Income | 674.0M | 567.8M | 873.0M | 1.1B | 1.2B | 1.2B | |
| End Period Cash Flow | 3.3B | 4.0B | 3.9B | 3.5B | 4.6B | 4.8B | |
| Dividends Paid | 155.1M | 158.2M | 188.8M | 228.4M | 274.6M | 288.3M | |
| Investments | (2.7B) | (2.8B) | (5.7B) | (4.6B) | (3.2B) | (3.4B) | |
| Net Borrowings | 388.6M | (113.8M) | (427.3M) | (250.9M) | (288.6M) | (303.0M) | |
| Change To Netincome | 61.8M | 125.5M | 43.6M | 129.2M | 148.6M | 115.4M |
East West Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to East West or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that East West's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a East stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.07 | |
β | Beta against NYSE Composite | 1.38 | |
σ | Overall volatility | 1.81 | |
Ir | Information ratio | -0.03 |
East West Volatility Alert
East West Bancorp has relatively low volatility with skewness of 0.25 and kurtosis of 0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure East West's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact East West's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.East West Fundamentals Vs Peers
Comparing East West's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze East West's direct or indirect competition across all of the common fundamentals between East West and the related equities. This way, we can detect undervalued stocks with similar characteristics as East West or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of East West's fundamental indicators could also be used in its relative valuation, which is a method of valuing East West by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare East West to competition |
| Fundamentals | East West | Peer Average |
| Return On Equity | 0.18 | -0.31 |
| Return On Asset | 0.0174 | -0.14 |
| Profit Margin | 0.49 % | (1.27) % |
| Operating Margin | 0.66 % | (5.51) % |
| Current Valuation | 9.77 B | 16.62 B |
| Shares Outstanding | 139.12 M | 571.82 M |
| Shares Owned By Insiders | 1.02 % | 10.09 % |
| Shares Owned By Institutions | 92.17 % | 39.21 % |
| Number Of Shares Shorted | 6.03 M | 4.71 M |
| Price To Earning | 15.81 X | 28.72 X |
| Price To Book | 1.46 X | 9.51 X |
| Price To Sales | 4.29 X | 11.42 X |
| Revenue | 3.97 B | 9.43 B |
| Gross Profit | 2.16 B | 27.38 B |
| EBITDA | (103.31 M) | 3.9 B |
| Net Income | 1.16 B | 570.98 M |
| Cash And Equivalents | 3.69 B | 2.7 B |
| Cash Per Share | 26.16 X | 5.01 X |
| Total Debt | 4.76 B | 5.32 B |
| Debt To Equity | 9.36 % | 48.70 % |
| Book Value Per Share | 49.64 X | 1.93 K |
| Cash Flow From Operations | 1.42 B | 971.22 M |
| Short Ratio | 4.17 X | 4.00 X |
| Earnings Per Share | 8.18 X | 3.12 X |
| Price To Earnings To Growth | 5.58 X | 4.89 X |
| Target Price | 87.93 | |
| Number Of Employees | 3.21 K | 18.84 K |
| Beta | 1.38 | -0.15 |
| Market Capitalization | 10.12 B | 19.03 B |
| Total Asset | 69.61 B | 29.47 B |
| Retained Earnings | 6.47 B | 9.33 B |
| Annual Yield | 0.03 % | |
| Five Year Return | 1.99 % |
Note: Disposition of 9780 shares by Del Moral-niles Christopher of East West subject to Rule 16b-3 [view details]
East West Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as East . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 20193.98 | |||
| Daily Balance Of Power | (0.16) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 73.02 | |||
| Day Typical Price | 72.81 | |||
| Price Action Indicator | (0.83) | |||
| Period Momentum Indicator | (0.38) |
About East West Buy or Sell Advice
When is the right time to buy or sell East West Bancorp? Buying financial instruments such as East Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 506.9M | 264.3M | 4.8B | 5.0B | Total Assets | 60.9B | 64.1B | 69.6B | 73.1B |
Use Investing Ideas to Build Portfolios
In addition to having East West in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out East West Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the East West Bancorp information on this page should be used as a complementary analysis to other East West's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Complementary Tools for East Stock analysis
When running East West's price analysis, check to measure East West's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy East West is operating at the current time. Most of East West's value examination focuses on studying past and present price action to predict the probability of East West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move East West's price. Additionally, you may evaluate how the addition of East West to your portfolios can decrease your overall portfolio volatility.
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Is East West's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of East West. If investors know East will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about East West listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Dividend Share 1.92 | Earnings Share 8.18 | Revenue Per Share 16.734 | Quarterly Revenue Growth 0.056 |
The market value of East West Bancorp is measured differently than its book value, which is the value of East that is recorded on the company's balance sheet. Investors also form their own opinion of East West's value that differs from its market value or its book value, called intrinsic value, which is East West's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because East West's market value can be influenced by many factors that don't directly affect East West's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between East West's value and its price as these two are different measures arrived at by different means. Investors typically determine if East West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, East West's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.