Eastern Bankshares, Inc. (NASDAQ:EBC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Consensus rating: Eight analysts give Eastern Bankshares a Moderate Buy consensus (4 buys, 3 holds, 1 strong buy) with an average 12‑month price target of $22.75 and some firms (e.g., TD Cowen) raising targets to $24.
• Mixed insider activity: CAO David Ahlquist sold 10,000 shares at about $21.65 (reducing his stake by 51.2%) while CFO R. David Rosato bought 5,000 shares at $19.17 (increasing his stake by 12.5%); insiders own 1.26% of the company.
• Valuation and dividend note: Market cap is ~$4.92B with a P/E of 51.15 and a recent EPS beat ($0.44 vs $0.41), but the company pays an annualized $0.52 dividend (2.5% yield) with a dividend payout ratio of 126.8%, raising questions about dividend sustainability.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eight analysts that are covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $22.75.

EBC has been the topic of a number of research analyst reports. Piper Sandler initiated coverage on shares of Eastern Bankshares in a research note on Monday, March 16th. They issued an "overweight" rating and a $23.00 price target on the stock. Hovde Group initiated coverage on shares of Eastern Bankshares in a research note on Monday, January 5th. They issued an "outperform" rating and a $22.50 price target on the stock. TD Cowen lifted their price target on shares of Eastern Bankshares from $23.00 to $24.00 and gave the company a "buy" rating in a research note on Monday, January 26th. Zacks Research upgraded Eastern Bankshares from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 13th. Finally, Barclays raised their price objective on Eastern Bankshares from $22.00 to $23.00 and gave the company an "equal weight" rating in a report on Tuesday, April 7th.

Insider Buying and Selling at Eastern Bankshares

In other Eastern Bankshares news, CAO David Andrew Ahlquist sold 10,000 shares of the firm's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $21.65, for a total value of $216,500.00. Following the transaction, the chief accounting officer owned 9,518 shares in the company, valued at approximately $206,064.70. This trade represents a 51.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO R David Rosato acquired 5,000 shares of the firm's stock in a transaction on Thursday, March 5th. The stock was purchased at an average price of $19.17 per share, for a total transaction of $95,850.00. Following the acquisition, the chief financial officer directly owned 45,000 shares in the company, valued at $862,650. This represents a 12.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.26% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of EBC. EverSource Wealth Advisors LLC raised its holdings in shares of Eastern Bankshares by 87.1% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,637 shares of the company's stock worth $30,000 after acquiring an additional 762 shares during the period. Danske Bank A S raised its holdings in shares of Eastern Bankshares by 533.3% during the 4th quarter. Danske Bank A S now owns 1,900 shares of the company's stock worth $35,000 after acquiring an additional 1,600 shares during the period. Corsicana & Co. purchased a new position in shares of Eastern Bankshares during the 3rd quarter worth $36,000. Allworth Financial LP raised its holdings in shares of Eastern Bankshares by 36.4% during the 3rd quarter. Allworth Financial LP now owns 2,189 shares of the company's stock worth $40,000 after acquiring an additional 584 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Eastern Bankshares during the 4th quarter worth $40,000. Hedge funds and other institutional investors own 71.68% of the company's stock.

Eastern Bankshares Price Performance

Shares of NASDAQ EBC opened at $20.97 on Tuesday. The stock has a market capitalization of $4.92 billion, a price-to-earnings ratio of 51.15 and a beta of 0.76. Eastern Bankshares has a 12 month low of $14.10 and a 12 month high of $22.58. The firm's 50 day simple moving average is $20.05 and its 200-day simple moving average is $19.27. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.91 and a quick ratio of 0.91.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last released its quarterly earnings results on Thursday, January 22nd. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.03. Eastern Bankshares had a net margin of 8.32% and a return on equity of 8.25%. The firm had revenue of $290.11 million for the quarter, compared to analysts' expectations of $287.09 million. Analysts expect that Eastern Bankshares will post 1.94 EPS for the current year.

Eastern Bankshares Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a $0.13 dividend. The ex-dividend date was Friday, March 6th. This represents a $0.52 dividend on an annualized basis and a yield of 2.5%. Eastern Bankshares's dividend payout ratio (DPR) is presently 126.83%.

About Eastern Bankshares

Eastern Bankshares, Inc is the bank holding company for Eastern Bank, one of the oldest and largest mutual banks in the United States. Founded in 1818 as Salem Savings Bank and later rebranded as Eastern Bank in 1989, the company preserved its mutual ownership structure for more than two centuries. In March 2020, it completed an initial public offering and began trading on the Nasdaq under the ticker EBC, while continuing to emphasize its community-focused heritage.

Through its primary subsidiary, Eastern Bank, the company delivers a broad range of commercial and consumer banking products.

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