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

Key Points

• Eastern Bankshares announced a quarterly dividend of $0.15 per share, payable on September 22 to shareholders of record on September 8. The dividend implies an annualized yield of about 2.7%.
• The company’s payout ratio is 31.3%, and analysts expect earnings to remain strong enough to cover the dividend going forward. Forecasts call for $2.17 per share in earnings next year versus a $0.60 annual dividend.
• Eastern Bankshares also reported better-than-expected quarterly results, with EPS of $0.49 versus estimates of $0.46 and revenue of $316 million topping forecasts. The stock was up slightly, trading near its 52-week high.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Shareholders of record on Tuesday, September 8th will be paid a dividend of 0.15 per share on Tuesday, September 22nd. This represents a c) dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 8th.

Eastern Bankshares has a dividend payout ratio of 31.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Eastern Bankshares to earn $2.17 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 27.6%.

Eastern Bankshares Trading Up 0.2%

NASDAQ:EBC opened at $22.62 on Friday. The stock has a 50-day simple moving average of $21.11 and a 200-day simple moving average of $20.43. The stock has a market cap of $5.23 billion, a P/E ratio of 12.71 and a beta of 0.67. Eastern Bankshares has a 1 year low of $14.88 and a 1 year high of $23.53. 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 (NASDAQ:EBC - Get Free Report) last issued its earnings results on Thursday, July 23rd. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.03. The business had revenue of $316.00 million for the quarter, compared to analyst estimates of $308.20 million. Eastern Bankshares had a return on equity of 8.42% and a net margin of 26.28%. As a group, analysts anticipate that Eastern Bankshares will post 1.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Luis Borgen sold 1,710 shares of Eastern Bankshares stock in a transaction on Monday, July 6th. The stock was sold at an average price of $22.71, for a total transaction of $38,834.10. Following the completion of 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 1.26% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. 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 buying an additional 762 shares during the last quarter. Danske Bank A S lifted its position in shares of 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. Allworth Financial LP boosted its stake 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 valued at $40,000 after acquiring an additional 584 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Eastern Bankshares in the 4th quarter valued at about $40,000. Finally, Flagship Harbor Advisors LLC purchased a new position in Eastern Bankshares in the 4th quarter valued at about $52,000. 71.68% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.