Eastern Company (The) to Issue Quarterly Dividend of $0.11 (NASDAQ:EML)

Key Points

• Eastern declared a quarterly dividend of $0.11 per share, payable June 15 to shareholders of record May 15, implying a 2.0% yield and a payout ratio of 17.2%, indicating earnings coverage.
• Eastern reported quarterly EPS of $0.31, missing the $0.36 analyst consensus, with a return on equity of 6.52% and a net margin of 2.90%.
• Directors made recent purchases (e.g., James Mitarotonda and John Everets), with insiders owning 18.4% of the stock and institutional investors holding roughly 77%.

Eastern Company (The) (NASDAQ:EML - Get Free Report) declared a quarterly dividend on Wednesday, May 6th. Shareholders of record on Friday, May 15th will be paid a dividend of 0.11 per share by the industrial products company on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, May 15th.

Eastern has a payout ratio of 17.2% indicating that its dividend is sufficiently covered by earnings.

Eastern Stock Up 1.9%

Shares of NASDAQ EML opened at $22.50 on Thursday. Eastern has a 1 year low of $17.61 and a 1 year high of $26.77. The firm has a market cap of $135.81 million, a price-to-earnings ratio of 19.23 and a beta of 0.88. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.55 and a current ratio of 3.59. The stock's 50-day simple moving average is $20.62 and its 200-day simple moving average is $19.82.

Eastern (NASDAQ:EML - Get Free Report) last announced its earnings results on Tuesday, March 3rd. The industrial products company reported $0.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.05). Eastern had a return on equity of 6.52% and a net margin of 2.90%.

Insider Buying and Selling

In related news, Director James A. Mitarotonda bought 5,067 shares of the firm's stock in a transaction on Friday, March 6th. The stock was bought at an average cost of $18.29 per share, for a total transaction of $92,675.43. Following the completion of the purchase, the director directly owned 640,000 shares in the company, valued at approximately $11,705,600. The trade was a 0.80% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Everets bought 1,339 shares of the firm's stock in a transaction on Monday, March 16th. The stock was bought at an average price of $20.93 per share, with a total value of $28,025.27. Following the completion of the purchase, the director owned 141,194 shares of the company's stock, valued at $2,955,190.42. This trade represents a 0.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders acquired 17,680 shares of company stock valued at $347,161. 18.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Eastern

A number of hedge funds and other institutional investors have recently bought and sold shares of EML. Teton Advisors LLC acquired a new position in shares of Eastern during the third quarter worth approximately $3,293,000. Minerva Advisors LLC boosted its position in shares of Eastern by 1.0% during the third quarter. Minerva Advisors LLC now owns 530,053 shares of the industrial products company's stock worth $12,435,000 after buying an additional 5,000 shares during the period. LSV Asset Management boosted its position in shares of Eastern by 71.5% during the third quarter. LSV Asset Management now owns 23,403 shares of the industrial products company's stock worth $549,000 after buying an additional 9,753 shares during the period. GatePass Capital LLC boosted its position in shares of Eastern by 87.8% during the third quarter. GatePass Capital LLC now owns 33,800 shares of the industrial products company's stock worth $793,000 after buying an additional 15,800 shares during the period. Finally, Barington Companies Management LLC boosted its position in shares of Eastern by 0.8% during the fourth quarter. Barington Companies Management LLC now owns 634,933 shares of the industrial products company's stock worth $12,502,000 after buying an additional 4,833 shares during the period. 76.99% of the stock is currently owned by institutional investors and hedge funds.

About Eastern

Eastern NASDAQ: EML, based in West Haven, Connecticut, is a diversified industrial manufacturer specializing in secure hardware and metal finishing services. The company operates through two primary segments: Industrial Hardware Products and Security Products, complemented by a Metal Coatings division. Its Industrial Hardware Products segment produces cold-headed fasteners, forgings, hinges and precision components for heavy commercial vehicles, hydraulic cylinders and industrial machinery.

The Security Products segment designs and manufactures a wide range of lock and latch solutions, including padlocks, door hardware, cabinet locks and rental security towers for commercial and institutional applications.

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