Hope Bancorp (NASDAQ:HOPE) Trading Down 3.9% Following Weak Earnings

Hope Bancorp, Inc. (NASDAQ:HOPE) was down 3.9% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.24 and last traded at $10.53. Approximately 118,727 shares changed hands during trading, a decline of 82% from the average daily volume of 644,997 shares. The stock had previously closed at $10.96.

The financial services provider reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.05). Hope Bancorp had a net margin of 10.80% and a return on equity of 6.43%. The company had revenue of $123.30 million during the quarter, compared to analyst estimates of $130.42 million. During the same period in the prior year, the company earned $0.33 earnings per share. The company’s revenue was down 14.9% on a year-over-year basis.

Hope Bancorp Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 23rd. Shareholders of record on Thursday, May 9th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 5.59%. The ex-dividend date of this dividend is Wednesday, May 8th. Hope Bancorp’s payout ratio is 56.00%.

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Wedbush cut their price objective on shares of Hope Bancorp from $12.00 to $11.00 and set a “neutral” rating on the stock in a research report on Tuesday. StockNews.com raised Hope Bancorp from a “sell” rating to a “hold” rating in a report on Saturday, January 6th. Finally, DA Davidson raised Hope Bancorp from a “neutral” rating to a “buy” rating and set a $12.50 target price on the stock in a research note on Tuesday. Three equities research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $11.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. CWM LLC lifted its position in Hope Bancorp by 39.1% in the first quarter. CWM LLC now owns 8,939 shares of the financial services provider’s stock worth $103,000 after purchasing an additional 2,513 shares during the period. Drive Wealth Management LLC acquired a new stake in shares of Hope Bancorp in the first quarter valued at $116,000. QRG Capital Management Inc. acquired a new stake in shares of Hope Bancorp in the third quarter valued at $132,000. Vanguard Personalized Indexing Management LLC boosted its stake in Hope Bancorp by 8.8% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 12,814 shares of the financial services provider’s stock valued at $155,000 after buying an additional 1,033 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Hope Bancorp by 46.2% during the fourth quarter. PNC Financial Services Group Inc. now owns 15,929 shares of the financial services provider’s stock worth $192,000 after acquiring an additional 5,034 shares during the period. 84.00% of the stock is currently owned by institutional investors.

Hope Bancorp Trading Up 1.0 %

The company has a quick ratio of 1.05, a current ratio of 1.00 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $1.21 billion, a P/E ratio of 10.02 and a beta of 1.13. The firm’s 50-day simple moving average is $10.92 and its 200 day simple moving average is $10.75.

About Hope Bancorp

Hope Bancorp, Inc operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans.