East West Bancorp (EWBC) Shares Rise 0.47% Amid Downgrade, Short Interest Surge

East West Bancorp (EWBC) shares rose to their highest level since February 2025 today, with an intraday gain of 0.47%.

The strategy of buying EWBC shares after they reached a recent high and holding for 1 week showed underperformance, with an average annual return of -3.69% over the past 5 years. This was significantly lower than the 17.44% annualized return of EWBC over the same period, indicating that waiting for higher prices and then holding the stock was not a profitable approach.

Morgan Stanley recently downgraded East West Bancorp from an "overweight" rating to an "equal weight" rating, and also reduced their target price for the company. This change in rating could influence investor sentiment and potentially impact the stock price.

Additionally, the short percent of float for East West Bancorp has increased by 7.45% since the last report. This rise in short interest may indicate growing market skepticism about the company's future performance, which could further affect the stock price.

East West Bancorp has also updated its 2025 Net Interest Income (NII) and revenue outlook in response to market uncertainty. This forward-looking information can shape investor expectations and influence the stock price.