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

Key Points

• Eastern Bankshares has a consensus analyst rating of “Moderate Buy”, with seven buy ratings and two hold ratings among nine firms covering the stock. The average 12-month price target is about $23.08.
• The company missed Q1 earnings and revenue estimates, reporting $0.40 EPS versus $0.44 expected and $295.9 million in revenue versus $308.68 million expected. Analysts still see full-year EPS at 1.87.
• Eastern Bankshares also raised its quarterly dividend to $0.15 per share, or $0.60 annualized, which works out to a 2.7% yield. The payout ratio is 33.71%.

Shares of Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the nine ratings firms that are currently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $23.0833.

A number of analysts have recently commented on the company. Barclays cut their target price on Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating on the stock in a research report on Monday, April 27th. DA Davidson started coverage on Eastern Bankshares in a research note on Friday, May 15th. They set a "buy" rating and a $24.00 price target on the stock. Weiss Ratings upgraded Eastern Bankshares from a "hold (c)" rating to a "buy (b)" rating in a research note on Tuesday, May 12th. Stephens began coverage on Eastern Bankshares in a report on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price objective for the company. Finally, TD Cowen lowered their target price on shares of Eastern Bankshares from $23.00 to $22.00 and set a "buy" rating on the stock in a research report on Monday, April 27th.

Insider Buying and Selling

In other news, Director Luis Borgen sold 1,709 shares of the company's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $21.97, for a total value of $37,546.73. Following the completion of the sale, the director directly owned 22,185 shares of the company's stock, valued at approximately $487,404.45. This represents a 7.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.26% of the company's stock.

Hedge Funds Weigh In On Eastern Bankshares

Institutional investors have recently bought and sold shares of the company. Wellington Management Group LLP boosted its holdings in Eastern Bankshares by 185.9% in the 4th quarter. Wellington Management Group LLP now owns 7,437,108 shares of the company's stock valued at $137,066,000 after purchasing an additional 4,835,474 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in Eastern Bankshares by 33.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 13,728,558 shares of the company's stock valued at $253,018,000 after acquiring an additional 3,407,066 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Eastern Bankshares by 12.6% in the fourth quarter. Vanguard Group Inc. now owns 21,874,030 shares of the company's stock valued at $403,138,000 after purchasing an additional 2,440,017 shares in the last quarter. Norges Bank acquired a new stake in shares of Eastern Bankshares during the fourth quarter valued at $33,548,000. Finally, Jennison Associates LLC boosted its stake in shares of Eastern Bankshares by 28.9% during the 1st quarter. Jennison Associates LLC now owns 6,846,216 shares of the company's stock worth $133,912,000 after purchasing an additional 1,535,094 shares during the last quarter. 71.68% of the stock is owned by institutional investors and hedge funds.

Eastern Bankshares Price Performance

EBC stock remained flat at $22.36 during midday trading on Friday. 2,305,355 shares of the company's stock traded hands, compared to its average volume of 5,082,938. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.16. Eastern Bankshares has a 52 week low of $14.88 and a 52 week high of $22.89. The company has a market cap of $5.17 billion, a price-to-earnings ratio of 12.56 and a beta of 0.67. The firm has a 50-day moving average of $20.37 and a 200-day moving average of $20.05.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.04). The company had revenue of $295.90 million during the quarter, compared to analysts' expectations of $308.68 million. Eastern Bankshares had a net margin of 26.28% and a return on equity of 8.42%. On average, sell-side analysts expect that Eastern Bankshares will post 1.87 earnings per share for the current fiscal year.

Eastern Bankshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 22nd. Shareholders of record on Friday, June 5th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Friday, June 5th. This is an increase from Eastern Bankshares's previous quarterly dividend of $0.13. Eastern Bankshares's payout ratio is 33.71%.

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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