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

Key Points

• Analysts give Eastern Bankshares an average rating of "Moderate Buy" from seven firms (3 hold, 3 buy, 1 strong buy) with an average 1-year target of $22.30.
• The company beat estimates in its most recent quarter (EPS $0.44 vs. $0.41; revenue $290.11M vs. $287.09M) and the stock traded at $19.23 versus a 52-week high of $22.58; market cap is $4.51B with a P/E of 46.89.
• Eastern pays a $0.13 quarterly dividend (annualized $0.52, 2.7% yield) but has a high dividend payout ratio of 126.83%, and recent insider activity included a large insider sale (21,256 shares) while the CFO purchased 5,000 shares.

Shares of Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) have received an average rating of "Moderate Buy" from the seven research firms that are presently covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $22.30.

Several analysts recently weighed in on EBC shares. Weiss Ratings restated a "hold (c)" rating on shares of Eastern Bankshares in a report on Monday, December 29th. Barclays initiated coverage on shares of Eastern Bankshares in a report on Wednesday, December 17th. They set an "equal weight" rating and a $22.00 target price on the stock. Piper Sandler initiated coverage on shares of Eastern Bankshares in a report on Monday, March 16th. They issued an "overweight" rating and a $23.00 price target for the company. Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Eastern Bankshares in a research report on Friday, December 5th. Finally, TD Cowen lifted their price objective on shares of Eastern Bankshares from $23.00 to $24.00 and gave the company a "buy" rating in a report on Monday, January 26th.

Eastern Bankshares Trading Down 0.8%

Shares of NASDAQ EBC traded down $0.15 during trading hours on Friday, reaching $19.23. The stock had a trading volume of 353,938 shares, compared to its average volume of 2,090,862. Eastern Bankshares has a 52-week low of $13.51 and a 52-week high of $22.58. The firm has a market cap of $4.51 billion, a price-to-earnings ratio of 46.89 and a beta of 0.81. The business's fifty day moving average price is $20.16 and its two-hundred day moving average price is $18.96. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.05.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last issued its earnings results on Thursday, January 22nd. The company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.41 by $0.03. Eastern Bankshares had a return on equity of 8.25% and a net margin of 8.32%.The business had revenue of $290.11 million during the quarter, compared to analyst estimates of $287.09 million. Analysts expect that Eastern Bankshares will post 1.49 EPS for the current fiscal year.

Eastern Bankshares Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Friday, March 6th. Eastern Bankshares's dividend payout ratio (DPR) is 126.83%.

Insider Activity

In other news, insider Donald Michael Westermann sold 21,256 shares of the business's stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $20.11, for a total value of $427,458.16. Following the completion of the transaction, the insider directly owned 20,860 shares of the company's stock, valued at approximately $419,494.60. The trade was a 50.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO R David Rosato acquired 5,000 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were bought at an average price of $19.17 per share, with a total value of $95,850.00. Following the completion of the purchase, the chief financial officer directly owned 45,000 shares in the company, valued at $862,650. The trade was a 12.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.10% of the company's stock.

Institutional Trading of Eastern Bankshares

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC raised its stake 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 in the last quarter. Danske Bank A S boosted its stake in Eastern Bankshares by 533.3% in the fourth quarter. Danske Bank A S now owns 1,900 shares of the company's stock valued at $35,000 after acquiring an additional 1,600 shares in the last quarter. Corsicana & Co. purchased a new position in Eastern Bankshares in the third quarter worth $36,000. Allworth Financial LP increased its position in shares of Eastern Bankshares by 36.4% during the third quarter. Allworth Financial LP now owns 2,189 shares of the company's stock worth $40,000 after purchasing an additional 584 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Eastern Bankshares during the fourth quarter worth $40,000. 71.68% of the stock is currently owned by institutional investors.

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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