Eastern Bankshares, Inc. (NASDAQ:EBC) to Issue Quarterly Dividend of $0.15

Key Points

• Eastern Bankshares declared a quarterly dividend of $0.15, payable June 22 to shareholders of record on June 5, a 15.4% increase from the prior $0.13 and implying a dividend yield of about 3.1%.
• The company missed quarterly expectations, reporting $0.40 EPS vs. $0.44 consensus and $295.9M revenue vs. $308.7M, and the stock traded down to $19.53 on the news.
• The dividend appears sustainable with a payout ratio of 27.1% and analysts projecting $2.18 EPS next year, implying an expected future payout ratio near 23.9%.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) declared a quarterly dividend on Thursday, April 23rd. Stockholders of record on Friday, June 5th will be paid a dividend of 0.15 per share on Monday, June 22nd. This represents a c) annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, June 5th. This is a 15.4% increase from Eastern Bankshares's previous quarterly dividend of $0.13.

Eastern Bankshares has a payout ratio of 27.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Eastern Bankshares to earn $2.18 per share next year, which means the company should continue to be able to cover its $0.52 annual dividend with an expected future payout ratio of 23.9%.

Eastern Bankshares Stock Performance

Shares of Eastern Bankshares stock traded down $0.98 on Friday, hitting $19.53. 2,818,834 shares of the company's stock were exchanged, compared to its average volume of 2,086,143. The company has a 50-day simple moving average of $19.98 and a 200-day simple moving average of $19.30. The stock has a market capitalization of $4.58 billion, a PE ratio of 47.62 and a beta of 0.76. Eastern Bankshares has a 1 year low of $14.10 and a 1 year high of $22.58. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.91 and a current ratio of 0.91.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.04). The business had revenue of $295.90 million for the quarter, compared to analysts' expectations of $308.68 million. Eastern Bankshares had a return on equity of 8.25% and a net margin of 8.32%. As a group, equities analysts anticipate that Eastern Bankshares will post 1.94 EPS for the current year.

Insiders Place Their Bets

In related news, CFO R David Rosato purchased 5,000 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were acquired at an average price of $19.17 per share, for a total transaction of $95,850.00. Following the purchase, the chief financial officer directly owned 45,000 shares in the company, valued at $862,650. This trade represents a 12.50% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO David Andrew Ahlquist sold 10,000 shares of the business's stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $21.65, for a total transaction of $216,500.00. Following the completion of the sale, the chief accounting officer owned 9,518 shares in the company, valued at approximately $206,064.70. The trade was a 51.23% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.26% of the company's stock.

Hedge Funds Weigh In On Eastern Bankshares

Several hedge funds have recently added to or reduced their stakes in EBC. EverSource Wealth Advisors LLC grew its holdings in Eastern Bankshares by 87.1% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,637 shares of the company's stock valued at $30,000 after purchasing an additional 762 shares during the last quarter. Danske Bank A S grew its holdings in Eastern Bankshares by 533.3% during the 4th quarter. Danske Bank A S now owns 1,900 shares of the company's stock valued at $35,000 after purchasing an additional 1,600 shares during the last quarter. Allworth Financial LP grew its holdings in Eastern Bankshares by 36.4% during the 3rd quarter. Allworth Financial LP now owns 2,189 shares of the company's stock valued at $40,000 after purchasing an additional 584 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Eastern Bankshares during the 4th quarter valued at about $40,000. Finally, Federated Hermes Inc. bought a new position in Eastern Bankshares during the 3rd quarter valued at about $49,000. 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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