Eastern Bankshares (NASDAQ:EBC) Announces Quarterly Earnings Results

Key Points

• Eastern Bankshares reported Q1 EPS of $0.40, missing the consensus by $0.04, and posted revenue of $295.9 million versus estimates of $308.7 million.
• Shares opened at $20.51 (market cap ~$4.81B) and the stock traded up about 1.3%, while analysts maintain a consensus rating of Moderate Buy with a $22.75 average price target (individual targets $22.50–$24.00).
• Insider and institutional activity was notable: CFO R. David Rosato bought 5,000 shares, another insider sold 21,256 shares, and large investors (e.g., Wellington, T. Rowe Price) materially increased stakes, leaving roughly 71.68% of the stock owned by institutions.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.04), FiscalAI reports. 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 8.25% and a net margin of 8.32%.

Eastern Bankshares Trading Up 1.3%

Shares of EBC stock opened at $20.51 on Friday. The stock has a market cap of $4.81 billion, a P/E ratio of 50.03 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 current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.05. The stock has a 50 day simple moving average of $19.98 and a 200 day simple moving average of $19.30.

Wall Street Analyst Weigh In

Several research firms have recently commented on EBC. Hovde Group began coverage on Eastern Bankshares in a research report on Monday, January 5th. They issued an "outperform" rating and a $22.50 target price on the stock. Zacks Research raised Eastern Bankshares from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 13th. Weiss Ratings restated a "hold (c)" rating on shares of Eastern Bankshares in a research note on Friday, March 27th. Piper Sandler started coverage on shares of Eastern Bankshares in a research report on Monday, March 16th. They issued an "overweight" rating and a $23.00 target price for the company. Finally, Stephens began coverage on shares of Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Eastern Bankshares presently has an average rating of "Moderate Buy" and a consensus price target of $22.75.

Insiders Place Their Bets

In related news, CFO R David Rosato acquired 5,000 shares of the company's stock in a transaction on Thursday, March 5th. The stock was purchased at an average cost of $19.17 per share, with a total value of $95,850.00. Following the acquisition, the chief financial officer directly owned 45,000 shares of the company's stock, valued at approximately $862,650. The trade was a 12.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Donald Michael Westermann sold 21,256 shares of the stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $20.11, for a total value of $427,458.16. Following the sale, the insider directly owned 20,860 shares in the company, valued at approximately $419,494.60. This trade represents a 50.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.26% of the company's stock.

Institutional Investors Weigh In On Eastern Bankshares

Large investors have recently bought and sold shares of the company. Wellington Management Group LLP raised its position in shares of Eastern Bankshares by 185.9% in the 4th quarter. Wellington Management Group LLP now owns 7,437,108 shares of the company's stock valued at $137,066,000 after buying an additional 4,835,474 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its position in shares of Eastern Bankshares by 33.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 13,728,558 shares of the company's stock worth $253,018,000 after acquiring an additional 3,407,066 shares in the last quarter. State Street Corp boosted its position in shares of Eastern Bankshares by 18.5% during the 4th quarter. State Street Corp now owns 8,919,404 shares of the company's stock worth $164,385,000 after acquiring an additional 1,389,304 shares in the last quarter. FJ Capital Management LLC bought a new position in Eastern Bankshares in the third quarter valued at approximately $17,721,000. Finally, HoldCo Asset Management LP increased its stake in Eastern Bankshares by 15.2% in the fourth quarter. HoldCo Asset Management LP now owns 7,382,772 shares of the company's stock valued at $136,064,000 after acquiring an additional 974,000 shares during the last quarter. 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.