Hope Bancorp (NASDAQ:HOPE) Upgraded by Brean Capital to Buy Rating

Brean Capital upgraded shares of Hope Bancorp (NASDAQ:HOPE) from a neutral rating to a buy rating in a report issued on Wednesday, Marketbeat reports.

Other equities analysts have also issued reports about the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Hope Bancorp in a research report on Monday, December 29th. DA Davidson restated a “buy” rating and set a $14.50 target price on shares of Hope Bancorp in a report on Wednesday, January 28th. Zacks Research lowered shares of Hope Bancorp from a “hold” rating to a “strong sell” rating in a research note on Monday, February 2nd. Finally, Keefe, Bruyette & Woods upped their price target on shares of Hope Bancorp from $12.00 to $13.00 and gave the company a “market perform” rating in a report on Wednesday, January 28th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $13.75.

Hope Bancorp Stock Performance

Shares of Hope Bancorp stock opened at $11.70 on Wednesday. The stock’s fifty day simple moving average is $11.59 and its 200 day simple moving average is $11.14. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $1.50 billion, a PE ratio of 25.44 and a beta of 0.80. Hope Bancorp has a 12 month low of $8.82 and a 12 month high of $12.79.

Hope Bancorp (NASDAQ:HOPE) last posted its earnings results on Tuesday, January 27th. The financial services provider reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.01. Hope Bancorp had a return on equity of 5.09% and a net margin of 5.81%.The firm had revenue of $145.76 million during the quarter, compared to analysts’ expectations of $142.90 million. During the same period in the previous year, the firm earned $0.20 earnings per share. The company’s revenue was up 23.6% on a year-over-year basis. On average, research analysts predict that Hope Bancorp will post 1.09 EPS for the current year.

Hope Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 20th. Stockholders of record on Friday, February 6th were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend was Friday, February 6th. Hope Bancorp’s dividend payout ratio is currently 121.74%.

Insider Activity

In related news, Director Daisy Y. Ha sold 31,020 shares of Hope Bancorp stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $12.48, for a total value of $387,129.60. The sale was disclosed in a document filed with the SEC, which is available at this link. Insiders own 5.16% of the company’s stock.

Hedge Funds Weigh In On Hope Bancorp

Large investors have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new stake in shares of Hope Bancorp in the fourth quarter worth $595,000. Rockefeller Capital Management L.P. grew its position in Hope Bancorp by 375.1% in the fourth quarter. Rockefeller Capital Management L.P. now owns 3,625 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 2,862 shares in the last quarter. Corient Private Wealth LLC increased its stake in Hope Bancorp by 5.1% in the 4th quarter. Corient Private Wealth LLC now owns 22,218 shares of the financial services provider’s stock valued at $244,000 after buying an additional 1,074 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in Hope Bancorp by 12.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 23,384 shares of the financial services provider’s stock valued at $256,000 after buying an additional 2,672 shares during the last quarter. Finally, Man Group plc lifted its position in Hope Bancorp by 76.7% during the 4th quarter. Man Group plc now owns 25,532 shares of the financial services provider’s stock worth $280,000 after buying an additional 11,082 shares in the last quarter. Institutional investors and hedge funds own 84.00% of the company’s stock.

Key Stories Impacting Hope Bancorp

Here are the key news stories impacting Hope Bancorp this week:

• Positive Sentiment: Acquisition — Bank of Hope will acquire SMBC MANUBANK’s U.S. commercial banking unit in an accretive, all-cash deal that expands the lender’s Los Angeles commercial franchise and adds loans, deposits and client relationships. This deal is the primary near-term driver behind buying interest. Bank of Hope to buy SMBC commercial unit
• Positive Sentiment: Analyst upgrade — Brean Capital raised HOPE from “neutral” to “buy,” which likely boosted demand and helped lift the stock on heavier-than-normal volume. Upgrades can attract short-term flow and re-rate smaller regional banks. Brean Capital upgrade report
• Neutral Sentiment: Underlying performance — Hope recently beat quarterly EPS and showed ~23.6% revenue growth year-over-year, supporting the view that the bank can integrate and grow acquired commercial assets; valuation remains moderate (PE ~25) versus peers. Bank of Hope to Acquire the Commercial Banking Unit of SMBC MANUBANK
• Negative Sentiment: Deal & execution risks — the purchase is all-cash, so watch capital and liquidity effects, regulatory approval timelines, integration costs and potential credit concentrations (commercial loans). Execution missteps or higher-than-expected capital needs could pressure shares. L.A. bank to buy U.S. commercial banking unit from Japan’s SMBC

About Hope Bancorp

Hope Bancorp, Inc operates as the bank holding company for Hope Bank, a California-chartered financial institution serving small and middle-market businesses, professionals and affluent individuals. The company’s principal activities include accepting a variety of deposit products—such as checking accounts, savings and money market accounts, and time deposits—and extending commercial credit facilities. With a focus on community banking, Hope Bancorp tailors its offerings to meet the needs of clients in diverse industries, including real estate, professional services and import/export trade.

In its lending business, Hope Bancorp provides commercial real estate loans, construction financing, working capital lines of credit and equipment financing.