Eastern Bankshares, Inc. (NASDAQ:EBC) Shares Set to Pay Quarterly Dividend of $0.15

Key Points

• Eastern Bankshares declared a quarterly dividend of $0.15 per share, payable December 21 to shareholders of record December 7. The dividend implies an annualized payout of $0.60 and a 2.7% yield.
• The company reported quarterly EPS of $0.51, exceeding analysts’ $0.49 estimate, while revenue of $311.7 million was slightly above expectations. Its 31.3% payout ratio indicates the dividend is well covered by earnings.
• Institutional ownership stands at 71.68%, with major investors including BlackRock and State Street expanding or initiating positions; meanwhile, insiders sold 65,190 shares worth approximately $1.45 million over the past three months.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Investors of record on Monday, December 7th will be paid a dividend of $0.15 per share on Monday, December 21st. This represents a $0.60 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Monday, December 7th.

Eastern Bankshares has a dividend payout ratio of 31.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Eastern Bankshares to earn $2.13 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 28.2%.

Eastern Bankshares Stock Performance

NASDAQ:EBC opened at $22.11 on Friday. The company has a market capitalization of $5.05 billion, a PE ratio of 12.56 and a beta of 0.70. The company has a 50 day simple moving average of $21.76 and a two-hundred day simple moving average of $21.39. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.90 and a current ratio of 0.90. Eastern Bankshares has a fifty-two week low of $16.61 and a fifty-two week high of $23.77.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.02. The firm had revenue of $311.70 million during the quarter, compared to analyst estimates of $310.60 million. Eastern Bankshares had a net margin of 25.12% and a return on equity of 8.71%. Research analysts anticipate that Eastern Bankshares will post 1.88 earnings per share for the current year.

Insider Buying and Selling at Eastern Bankshares

In other Eastern Bankshares news, insider Donald Westermann sold 23,005 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $21.43, for a total value of $492,997.15. Following the completion of the sale, the insider directly owned 22,565 shares in the company, valued at approximately $483,567.95. This trade represents a 50.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Joseph Casey sold 10,000 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $22.72, for a total transaction of $227,200.00. Following the completion of the sale, the director owned 62,079 shares of the company's stock, valued at $1,410,434.88. The trade was a 13.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 65,190 shares of company stock worth $1,452,900. 1.26% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in EBC. BlackRock Inc. acquired a new position in shares of Eastern Bankshares during the second quarter worth approximately $498,672,000. State Street Corp grew its position in Eastern Bankshares by 42.3% in the 2nd quarter. State Street Corp now owns 12,124,657 shares of the company's stock valued at $269,652,000 after purchasing an additional 3,603,128 shares during the period. Bank of America Corp DE acquired a new stake in Eastern Bankshares in the 2nd quarter valued at $38,188,000. Bank of New York Mellon Corp acquired a new stake in Eastern Bankshares in the 2nd quarter valued at $37,479,000. Finally, William Blair Investment Management LLC bought a new stake in Eastern Bankshares during the 2nd quarter valued at $34,427,000. 71.68% of the stock is owned by institutional investors and hedge funds.

About Eastern Bankshares

Eastern Bankshares, Inc NASDAQ: EBC is the holding company for Eastern Bank, a full-service commercial bank headquartered in Boston, Massachusetts. Founded in 1818, Eastern Bank is one of the oldest and largest mutual banks in the United States to have converted to public ownership.

Eastern Bank provides a range of personal and business banking products, including checking and savings accounts, residential and commercial real estate loans, consumer lending, commercial loans, cash-management services and online banking.

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