Eastern Bankshares, Inc. (NASDAQ:EBC) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Eastern Bankshares carries a consensus analyst rating of “Moderate Buy”, with 6 buy ratings, 1 strong buy, and 2 holds. The average 12-month price target is about $22.92.
• The company missed first-quarter earnings expectations, reporting EPS of $0.40 versus the $0.44 estimate, and revenue of $295.9 million versus the $308.68 million forecast.
• Eastern Bankshares also raised its quarterly dividend to $0.15 per share from $0.13, implying an annualized yield of about 3.1%.

Shares of Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) have earned a consensus rating of "Moderate Buy" from the nine brokerages that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $22.9167.

Several brokerages have recently weighed in on EBC. TD Cowen decreased their price objective on Eastern Bankshares from $23.00 to $22.00 and set a "buy" rating on the stock in a report on Monday, April 27th. Stephens began coverage on Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 target price for the company. Barclays reduced their target price on Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating for the company in a research report on Monday, April 27th. Piper Sandler began coverage on shares of Eastern Bankshares in a research note on Monday, March 16th. They set an "overweight" rating and a $23.00 price target on the stock. Finally, DA Davidson assumed coverage on shares of Eastern Bankshares in a report on Friday. They issued a "buy" rating and a $24.00 price target on the stock.

Insiders Place Their Bets

In related news, CFO R David Rosato acquired 5,000 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were bought at an average cost of $19.17 per share, with a total value of $95,850.00. Following the completion of the acquisition, the chief financial officer owned 45,000 shares of the company's stock, valued at $862,650. This trade represents a 12.50% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.26% of the company's stock.

Hedge Funds Weigh In On Eastern Bankshares

A number of hedge funds have recently modified their holdings of EBC. Royal Bank of Canada boosted its stake in Eastern Bankshares by 38.0% in the 1st quarter. Royal Bank of Canada now owns 198,421 shares of the company's stock valued at $3,254,000 after buying an additional 54,664 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of Eastern Bankshares during the first quarter valued at $954,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Eastern Bankshares by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 114,881 shares of the company's stock valued at $1,884,000 after acquiring an additional 5,028 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Eastern Bankshares by 7.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 432,405 shares of the company's stock valued at $7,091,000 after purchasing an additional 29,781 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in shares of Eastern Bankshares by 789.9% in the 1st quarter. Jane Street Group LLC now owns 545,589 shares of the company's stock valued at $8,948,000 after purchasing an additional 484,277 shares in the last quarter. 71.68% of the stock is owned by institutional investors and hedge funds.

Eastern Bankshares Stock Performance

Shares of EBC traded down $0.25 during trading hours on Friday, reaching $19.19. 1,506,475 shares of the company traded hands, compared to its average volume of 2,367,827. The stock's fifty day moving average is $19.75 and its 200 day moving average is $19.45. The stock has a market cap of $4.44 billion, a P/E ratio of 10.78 and a beta of 0.70. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.91 and a current ratio of 0.91. Eastern Bankshares has a 1-year low of $14.10 and a 1-year high of $22.58.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last released its earnings results on Thursday, April 23rd. The company reported $0.40 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.04). Eastern Bankshares had a return on equity of 8.42% and a net margin of 26.28%.The firm had revenue of $295.90 million for the quarter, compared to analyst estimates of $308.68 million. Equities research analysts anticipate that Eastern Bankshares will post 1.88 earnings per share for the current fiscal year.

Eastern Bankshares Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 22nd. Investors of record on Friday, June 5th will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 3.1%. This is a boost from Eastern Bankshares's previous quarterly dividend of $0.13. The ex-dividend date of this dividend is Friday, June 5th. Eastern Bankshares's dividend payout ratio (DPR) is currently 29.21%.

Eastern Bankshares Company Profile

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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