Eastern Bankshares (NASDAQ:EBC) Price Target Cut to $22.00 by Analysts at TD Cowen

Key Points

• TD Cowen cut its price target on Eastern Bankshares from $23.00 to $22.00 but maintained a "buy" rating, which implies roughly a 10.14% upside from the prior close.
• Eastern missed quarterly estimates (EPS $0.40 vs. $0.44 expected; revenue $295.9M vs. $308.7M) and the stock trades around $19.98, below the consensus price target of $22.25 and the 12‑month high of $22.58.
• CFO R. David Rosato purchased 5,000 shares while another insider sold stock, and institutions now own about 71.68% of the company with notable recent stake increases from firms like Jane Street.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) had its price objective reduced by investment analysts at TD Cowen from $23.00 to $22.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. TD Cowen's target price would indicate a potential upside of 10.14% from the stock's previous close.

Other analysts have also recently issued reports about the company. Piper Sandler started coverage on Eastern Bankshares in a report on Monday, March 16th. They set an "overweight" rating and a $23.00 price objective on the stock. Barclays decreased their price objective on Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating on the stock in a report on Monday. Zacks Research raised Eastern Bankshares from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 13th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Eastern Bankshares in a report on Friday, March 27th. Finally, Stephens started coverage on Eastern Bankshares in a report on Wednesday, April 15th. They set an "overweight" rating and a $24.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $22.25.

Eastern Bankshares Price Performance

EBC stock traded up $0.08 during midday trading on Monday, hitting $19.98. The company's stock had a trading volume of 2,982,169 shares, compared to its average volume of 2,154,001. Eastern Bankshares has a 12 month low of $14.10 and a 12 month high of $22.58. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $4.69 billion, a price-to-earnings ratio of 11.21 and a beta of 0.76. The company has a 50 day moving average of $19.95 and a two-hundred day moving average of $19.32.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last posted 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 during the quarter, compared to the consensus estimate of $308.68 million. Eastern Bankshares had a return on equity of 8.60% and a net margin of 26.28%. On average, analysts expect that Eastern Bankshares will post 1.92 EPS for the current year.

Insider Activity at Eastern Bankshares

In related news, CFO R David Rosato purchased 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, for a total transaction of $95,850.00. Following the acquisition, the chief financial officer owned 45,000 shares of the company's stock, valued at approximately $862,650. This represents a 12.50% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Donald Michael Westermann sold 21,256 shares of the stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $20.11, for a total value of $427,458.16. Following the sale, the insider owned 20,860 shares in the company, valued at $419,494.60. The trade was a 50.47% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.26% of the stock is currently owned by insiders.

Institutional Trading of Eastern Bankshares

Several hedge funds and other institutional investors have recently bought and sold shares of EBC. Royal Bank of Canada raised its holdings in Eastern Bankshares by 38.0% during the 1st quarter. Royal Bank of Canada now owns 198,421 shares of the company's stock valued at $3,254,000 after buying an additional 54,664 shares during the period. AQR Capital Management LLC purchased a new stake in Eastern Bankshares in the first quarter worth $954,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in 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 purchasing an additional 5,028 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in 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 purchasing an additional 29,781 shares during the period. Finally, Jane Street Group LLC increased its stake in Eastern Bankshares by 789.9% in 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 period. Hedge funds and other institutional investors own 71.68% of the company's stock.

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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