Eastern Bankshares, Inc. (NASDAQ:EBC) Short Interest Up 91.8% in June

Key Points

• Short interest in Eastern Bankshares surged 91.8% in June, reaching 18.68 million shares by June 30, or 8.2% of the float. The short-interest ratio stands at 2.7 days based on average trading volume.
• The stock was trading near its 52-week high, rising to $23.46 with volume slightly above average. Eastern Bankshares also has a market value of about $5.42 billion and a 2.6% dividend yield after increasing its quarterly payout to $0.15.
• Analysts remain generally positive despite mixed fundamentals, with seven Buy ratings and two Holds, giving the stock a consensus “Moderate Buy” and an average price target of $23.08. The company recently missed quarterly EPS and revenue estimates, but Piper Sandler and other firms have raised or reiterated bullish targets.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) was the target of a large growth in short interest in June. As of June 30th, there was short interest totaling 18,678,319 shares, a growth of 91.8% from the June 15th total of 9,736,589 shares. Based on an average daily trading volume, of 7,013,541 shares, the short-interest ratio is presently 2.7 days. Currently, 8.2% of the company's stock are sold short.

Eastern Bankshares Stock Performance

Eastern Bankshares stock traded up $0.78 during mid-day trading on Thursday, reaching $23.46. 2,758,054 shares of the company traded hands, compared to its average volume of 2,534,674. The firm's fifty day moving average is $20.72 and its two-hundred day moving average is $20.25. The company has a market capitalization of $5.42 billion, a price-to-earnings ratio of 13.18 and a beta of 0.67. Eastern Bankshares has a fifty-two week low of $14.88 and a fifty-two week high of $23.54. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.91 and a quick ratio of 0.91.

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

Eastern Bankshares Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 22nd. Stockholders of record on Friday, June 5th were issued a $0.15 dividend. This is a boost from Eastern Bankshares's previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, June 5th. Eastern Bankshares's dividend payout ratio is currently 33.71%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Piper Sandler upped their price target on Eastern Bankshares from $23.00 to $24.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. Weiss Ratings raised Eastern Bankshares from a "hold (c)" rating to a "buy (b)" rating in a research report on Tuesday, May 12th. DA Davidson assumed coverage on Eastern Bankshares in a research note on Friday, May 15th. They set a "buy" rating and a $24.00 target price on the stock. Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Eastern Bankshares in a research report on Monday, June 8th. Finally, Stephens initiated coverage on Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price target for the company. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Eastern Bankshares presently has a consensus rating of "Moderate Buy" and an average target price of $23.08.

Insider Buying and Selling at Eastern Bankshares

In other news, Director Luis Borgen sold 1,710 shares of Eastern Bankshares stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $22.71, for a total value of $38,834.10. Following the transaction, the director owned 20,475 shares of the company's stock, valued at $464,987.25. The trade was a 7.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.26% of the company's stock.

Institutional Investors Weigh In On Eastern Bankshares

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

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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