Eastern Bankshares (NASDAQ:EBC) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• Eastern Bankshares reached a new 52-week high after Keefe, Bruyette & Woods raised its price target to $25 from $23 and maintained an outperform rating. The stock traded near $23.55, while analysts’ consensus rating is “Moderate Buy” with an average target of $24.86.
• The company exceeded quarterly expectations, reporting $0.49 in EPS versus the $0.46 consensus estimate and revenue of $316 million compared with expectations of $308.2 million.
• Eastern Bankshares declared a quarterly dividend of $0.15 per share, equivalent to $0.60 annually and a 2.5% yield. Institutional investors own 71.68% of the company, while a director recently sold 1,710 shares.

Eastern Bankshares, Inc. (NASDAQ:EBC - Get Free Report)'s share price hit a new 52-week high on Tuesday after Keefe, Bruyette & Woods raised their price target on the stock from $23.00 to $25.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Eastern Bankshares traded as high as $23.61 and last traded at $23.55, with a volume of 5837827 shares trading hands. The stock had previously closed at $23.10.

EBC has been the subject of several other reports. Barclays lowered their target price on Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating for the company in a report on Monday, April 27th. DA Davidson upped their price objective on Eastern Bankshares from $24.00 to $25.00 and gave the stock a "buy" rating in a research note on Monday. Piper Sandler reaffirmed an "overweight" rating and issued a $26.00 target price (up from $24.00) on shares of Eastern Bankshares in a research report on Monday. Stephens assumed coverage on Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 target price on the stock. Finally, Hovde Group boosted their price target on shares of Eastern Bankshares from $23.50 to $26.00 and gave the company an "outperform" rating in a report on Monday. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $24.86.

Insider Activity

In related news, Director Luis Borgen sold 1,710 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $22.71, for a total value of $38,834.10. Following the completion of the transaction, the director directly owned 20,475 shares of the company's stock, valued at $464,987.25. This represents a 7.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 1.26% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its holdings in shares of Eastern Bankshares by 87.1% during the fourth 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 period. Danske Bank A S grew its position in Eastern Bankshares by 533.3% in the 4th quarter. Danske Bank A S now owns 1,900 shares of the company's stock valued at $35,000 after buying an additional 1,600 shares in the last quarter. Allworth Financial LP grew its position in Eastern Bankshares by 36.4% in the 3rd quarter. Allworth Financial LP now owns 2,189 shares of the company's stock valued at $40,000 after buying an additional 584 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Eastern Bankshares during the 4th quarter valued at about $40,000. Finally, Flagship Harbor Advisors LLC acquired a new position in Eastern Bankshares during the 4th quarter valued at about $52,000. Institutional investors and hedge funds own 71.68% of the company's stock.

Eastern Bankshares Price Performance

The business's 50-day simple moving average is $21.26 and its 200 day simple moving average is $20.49. The company has a market capitalization of $5.44 billion, a P/E ratio of 13.38 and a beta of 0.67. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 0.16.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.03. Eastern Bankshares had a net margin of 25.12% and a return on equity of 8.71%. The business had revenue of $316.00 million during the quarter, compared to analysts' expectations of $308.20 million. As a group, sell-side analysts anticipate that Eastern Bankshares, Inc. will post 1.87 EPS for the current year.

Eastern Bankshares Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 8th. Eastern Bankshares's dividend payout ratio (DPR) is presently 34.09%.

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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