Hope Bancorp (NASDAQ:HOPE) Trading Down 5.6% on Disappointing Earnings

Hope Bancorp, Inc. (NASDAQ:HOPE) shares dropped 5.6% on Tuesday following a dissappointing earnings announcement. The company traded as low as $10.69 and last traded at $10.72. Approximately 621,809 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 834,406 shares. The stock had previously closed at $11.36.

The financial services provider reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.43). Hope Bancorp had a return on equity of 4.60% and a net margin of 9.82%. The company had revenue of $94.58 million during the quarter, compared to the consensus estimate of $133.90 million. During the same quarter in the previous year, the company posted $0.22 earnings per share.

Hope Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Friday, August 1st will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 5.17%. Hope Bancorp’s dividend payout ratio is presently 71.79%.

Wall Street Analyst Weigh In

Separately, Wall Street Zen upgraded shares of Hope Bancorp from a “sell” rating to a “hold” rating in a report on Monday, May 12th.

Institutional Investors Weigh In On Hope Bancorp

Hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP grew its stake in shares of Hope Bancorp by 43.4% in the first quarter. Wellington Management Group LLP now owns 6,201,937 shares of the financial services provider’s stock worth $64,934,000 after purchasing an additional 1,877,820 shares in the last quarter. Rhino Investment Partners Inc grew its stake in shares of Hope Bancorp by 55.6% in the fourth quarter. Rhino Investment Partners Inc now owns 1,684,886 shares of the financial services provider’s stock worth $20,707,000 after purchasing an additional 601,876 shares in the last quarter. Invesco Ltd. grew its stake in shares of Hope Bancorp by 72.8% in the fourth quarter. Invesco Ltd. now owns 1,339,171 shares of the financial services provider’s stock worth $16,458,000 after purchasing an additional 564,014 shares in the last quarter. Nuveen LLC bought a new position in shares of Hope Bancorp in the first quarter worth $3,451,000. Finally, Norges Bank bought a new position in shares of Hope Bancorp in the fourth quarter worth $4,001,000. 84.00% of the stock is currently owned by hedge funds and other institutional investors.

Hope Bancorp Stock Performance

The company has a market cap of $1.39 billion, a P/E ratio of 13.90 and a beta of 0.90. The company has a 50 day moving average price of $10.63 and a 200-day moving average price of $10.70. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.10.

Hope Bancorp Company Profile

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.