Top investors say Hope Bancorp Inc. (HOPE) ticks everything they need

Hope Bancorp Inc. (NASDAQ: HOPE) stock fell -4.83% on Tuesday to $12.42 against a previous-day closing price of $13.05. With 0.76 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.66 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $12.78 whereas the lowest price it dropped to was $12.17. The 52-week range on HOPE shows that it touched its highest point at $17.68 and its lowest point at $12.27 during that stretch. It currently has a 1-year price target of $14.70. With its current market cap of 1.45 billion, HOPE has annualized dividend of $0.56 while the current yield stands at 4.51%. Beta for the stock currently stands at 1.21.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HOPE was down-trending over the past week, with a drop of -3.65%, but this was down by -3.57% over a month. Three-month performance dropped to -5.69% while six-month performance fell -15.91%. The stock lost -20.28% in the past year, while it has lost -3.04% so far this year. A look at the trailing 12-month EPS for HOPE yields 1.81 with Next year EPS estimates of 1.76. For the next quarter, that number is 0.45. This implies an EPS growth rate of 84.60% for this year and -4.09% for next year. EPS is expected to grow by 8.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.60%.

Float and Shares Shorts:

At present, 119.48 million HOPE shares are outstanding with a float of 113.59 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.06 million, which was 2.56% higher than short shares on Sep 14, 2022. In addition to Mr. Kevin Sung Kim J.D. as the firm’s Chairman, Pres & CEO, Mr. Alex Ko serves as its Sr. EVP & CFO.

Institutional Ownership:

Through their ownership of 88.29% of HOPE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.55% of HOPE, in contrast to 5.62% held by mutual funds. Shares owned by individuals account for 25.37%. As the largest shareholder in HOPE with 13.74% of the stake, BlackRock Fund Advisors holds 16,415,433 shares worth 16,415,433. A second-largest stockholder of HOPE, The Vanguard Group, Inc., holds 13,767,211 shares, controlling over 11.52% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in HOPE, holding 9,414,171 shares or 7.88% stake. With a 6.69% stake in HOPE, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,989,669 shares are owned by the mutual fund manager. The Undiscovered Managers Behavioral, which owns about 5.08% of HOPE stock, is the second-largest Mutual Fund holder. It holds 6,073,589 shares valued at 77.8 million. Vanguard Total Stock Market Index holds 2.87% of the stake in HOPE, owning 3,431,147 shares worth 43.95 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HOPE since 5 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HOPE analysts setting a high price target of $16.00 and a low target of $13.00, the average target price over the next 12 months is $14.20. Based on these targets, HOPE could surge 28.82% to reach the target high and rise by 4.67% to reach the target low. Reaching the average price target will result in a growth of 14.33% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HOPE will report FY 2023 earnings on 01/23/2024. Analysts have provided yearly estimates in a range of $1.80 being high and $1.55 being low. For HOPE, this leads to a yearly average estimate of $1.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hope Bancorp Inc. surprised analysts by -$0.02 when it reported $0.43 EPS against a consensus estimate of $0.45. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.45 and the low estimate is $0.37. The average estimate for the next quarter is thus $0.41.

Dividends & Yield:

In terms of dividends, HOPE has a current ratio of $0.56, which is $0.56 over the trailing 12-months, while a dividend of $0.55 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and HOPE currently yields $4.51. In the past year, HOPE’s dividend yield has been $4.51, but when looking at the stock over the past five years, its yield has been $4.20. Accordingly, HOPE has a current buyback yield of $1.18. This was $1.18 for the TTM.

Summary of Insider Activity:

Insiders traded HOPE stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 119 shares were bought while 0 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 39 over the past year. The total number of shares bought during that period was 319,961 while 141,097 shares were sold.

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