East West Bancorp (EWBC) Soars 6.58% on CEO Share Sale, Q1 Earnings

East West Bancorp (EWBC) shares surged 6.58% today, reaching their highest level since February 2025 with an intraday gain of 8.49%.

The strategy of buying EWBC shares after they reached a recent high and holding for 1 week resulted in a 6.71% annualized return over the past 5 years, significantly underperforming the market benchmark. This suggests that relying on recent highs for investment decisions can lead to subpar performance, as the market conditions that drove the stock price up may not persist over the holding period. The average annual return of 21.1% achieved by East West Bancorp over the same period highlights the importance of considering broader market trends and the potential for continued growth in the banking sector.

One of the key factors influencing East West Bancorp's stock price is the recent insider trading activity. On May 12, 2025, CEO Dominic Ng sold 40,000 shares of the company under a Rule 10b5-1 trading plan. This move by the CEO could potentially impact investor sentiment, as insider trading activities are often scrutinized by the market.

Additionally, East West Bancorp released their Q1 2025 earnings report on May 9, 2025. The financial performance and any guidance provided in this report are likely to have a significant impact on the stock price. Investors closely monitor earnings reports to assess the company's financial health and future prospects, which can drive stock price movements.