Eastern (NASDAQ:EML) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Eastern shares rose above their 200-day moving average, reaching $24.44 and last trading at $24.41, compared with the moving average of $21.26.
• Analyst sentiment remains cautious, with Royal Bank of Canada downgrading the stock to “Hold” and the overall consensus rating standing at “Hold.”
• The company’s latest quarterly results missed expectations, reporting $0.11 in EPS versus $0.50 expected and revenue of $59.68 million versus $67.74 million estimated. Eastern declared a quarterly dividend of $0.11, equivalent to a 1.8% annual yield.

Shares of Eastern Company (The) (NASDAQ:EML - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $21.26 and traded as high as $24.44. Eastern shares last traded at $24.41, with a volume of 8,207 shares.

Analyst Upgrades and Downgrades

EML has been the topic of a number of recent research reports. Royal Bank Of Canada downgraded shares of Eastern from a "moderate buy" rating to a "hold" rating in a research note on Monday, April 13th. Weiss Ratings restated a "hold (c)" rating on shares of Eastern in a research note on Wednesday, June 24th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Eastern Stock Up 1.2%

The company has a market capitalization of $147.22 million, a price-to-earnings ratio of 25.43 and a beta of 0.82. The business has a fifty day simple moving average of $23.79 and a two-hundred day simple moving average of $21.26. The company has a quick ratio of 1.64, a current ratio of 3.52 and a debt-to-equity ratio of 0.29.

Eastern (NASDAQ:EML - Get Free Report) last issued its earnings results on Tuesday, May 12th. The industrial products company reported $0.11 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.50 by ($0.39). The company had revenue of $59.68 million during the quarter, compared to analyst estimates of $67.74 million. Eastern had a return on equity of 5.46% and a net margin of 2.41%.

Eastern Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, August 14th. Eastern's dividend payout ratio is 45.83%.

Insiders Place Their Bets

In related news, Director John Everets acquired 1,310 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was purchased at an average cost of $21.40 per share, for a total transaction of $28,034.00. Following the completion of the purchase, the director directly owned 142,504 shares of the company's stock, valued at $3,049,585.60. The trade was a 0.93% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Peggy Scott acquired 1,176 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were bought at an average cost of $21.40 per share, with a total value of $25,166.40. Following the completion of the acquisition, the director owned 26,262 shares of the company's stock, valued at approximately $562,006.80. This trade represents a 4.69% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 13,264 shares of company stock worth $285,179 over the last three months. 18.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Eastern

Several institutional investors have recently added to or reduced their stakes in EML. BNP Paribas Financial Markets grew its stake in Eastern by 82.9% during the third quarter. BNP Paribas Financial Markets now owns 1,273 shares of the industrial products company's stock worth $30,000 after buying an additional 577 shares during the last quarter. Focus Partners Wealth acquired a new stake in shares of Eastern during the third quarter worth approximately $40,000. Tower Research Capital LLC TRC raised its stake in shares of Eastern by 295.9% in the second quarter. Tower Research Capital LLC TRC now owns 1,738 shares of the industrial products company's stock valued at $40,000 after acquiring an additional 1,299 shares during the last quarter. Raymond James Financial Inc. bought a new position in shares of Eastern in the second quarter valued at approximately $70,000. Finally, Fifth Third Bancorp acquired a new position in shares of Eastern in the 1st quarter worth approximately $73,000. 76.99% of the stock is owned by institutional investors.

Eastern Company Profile

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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