Hope Bancorp (NASDAQ:HOPE) Stock Rating Upgraded by Zacks Research

Hope Bancorp (NASDAQ:HOPE) was upgraded by stock analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other brokerages also recently issued reports on HOPE. Brean Capital raised Hope Bancorp from a “neutral” rating to a “buy” rating in a research note on Wednesday. DA Davidson reissued a “buy” rating and issued a $14.50 price target on shares of Hope Bancorp in a research report on Wednesday, January 28th. Keefe, Bruyette & Woods increased their target price on shares of Hope Bancorp from $12.00 to $13.00 and gave the stock a “market perform” rating in a research report on Wednesday, January 28th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Hope Bancorp in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Hope Bancorp presently has a consensus rating of “Hold” and an average target price of $13.75.

Hope Bancorp Trading Up 4.7%

Shares of HOPE opened at $11.70 on Tuesday. The business’s 50-day moving average price is $11.59 and its 200 day moving average price 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 stock has a market capitalization of $1.50 billion, a P/E ratio of 25.44 and a beta of 0.80. Hope Bancorp has a 1-year low of $8.82 and a 1-year high of $12.79.

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

Insider Buying and Selling at Hope Bancorp

In related news, Director Daisy Y. Ha sold 31,020 shares of the business’s 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 5.16% of the company’s stock.

Institutional Trading of Hope Bancorp

Institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada raised its holdings in Hope Bancorp by 91.5% in the 1st quarter. Royal Bank of Canada now owns 32,828 shares of the financial services provider’s stock worth $344,000 after acquiring an additional 15,687 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Hope Bancorp by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 68,936 shares of the financial services provider’s stock worth $722,000 after purchasing an additional 3,005 shares during the period. Millennium Management LLC lifted its position in shares of Hope Bancorp by 147.1% during the 1st quarter. Millennium Management LLC now owns 492,153 shares of the financial services provider’s stock worth $5,153,000 after purchasing an additional 292,994 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Hope Bancorp during the 1st quarter worth about $297,000. Finally, Jane Street Group LLC boosted its stake in Hope Bancorp by 676.8% during the 1st quarter. Jane Street Group LLC now owns 227,116 shares of the financial services provider’s stock valued at $2,378,000 after purchasing an additional 197,877 shares during the period. 84.00% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines 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

Hope Bancorp Company Profile

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.