Eastern (NASDAQ:EML) Stock Passes Above 200 Day Moving Average - Here's Why

Key Points

• Eastern stock passed above its 200-day moving average, with the 200-day at $19.82; shares traded as high as $22.62 and last at $21.85 on volume of 13,406.
• Analyst sentiment is lukewarm — the consensus rating is "Hold" after recent moves including RBC downgrading EML from "moderate buy" to "hold" and Weiss reaffirming a hold (c).
• Insiders have been buying: two directors made recent purchases and insiders acquired 17,680 shares (~$347,161) in the last 90 days, with insiders owning about 18.4% of the company.

Shares of Eastern Company (The) (NASDAQ:EML - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $19.82 and traded as high as $22.62. Eastern shares last traded at $21.85, with a volume of 13,406 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on EML. Wall Street Zen upgraded Eastern to a "hold" rating in a report on Saturday, January 10th. Royal Bank Of Canada downgraded Eastern from a "moderate buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Eastern in a research note on Monday, December 29th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of "Hold".

Eastern Stock Performance

The firm has a market capitalization of $131.97 million, a P/E ratio of 18.68 and a beta of 0.89. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.59 and a quick ratio of 1.55. The firm has a 50-day moving average price of $20.05 and a two-hundred day moving average price of $19.82.

Eastern (NASDAQ:EML - Get Free Report) last posted its quarterly earnings results on Tuesday, March 3rd. The industrial products company reported $0.31 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 Activity at Eastern

In other news, Director John Everets purchased 1,339 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was purchased at an average price of $20.93 per share, for a total transaction of $28,025.27. Following the completion of the acquisition, the director owned 141,194 shares of the company's stock, valued at approximately $2,955,190.42. This trade represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director James A. Mitarotonda acquired 2,000 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was purchased at an average cost of $20.11 per share, for a total transaction of $40,220.00. Following the purchase, the director owned 644,342 shares of the company's stock, valued at $12,957,717.62. This represents a 0.31% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 17,680 shares of company stock valued at $347,161 in the last ninety days. Insiders own 18.40% of the company's stock.

Hedge Funds Weigh In On Eastern

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BNP Paribas Financial Markets increased its position in Eastern by 82.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,273 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 577 shares during the period. Focus Partners Wealth purchased a new position in Eastern during the third quarter valued at approximately $40,000. Tower Research Capital LLC TRC raised its stake in 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 worth $40,000 after buying an additional 1,299 shares in the last quarter. Raymond James Financial Inc. bought a new position in Eastern in the second quarter worth approximately $70,000. Finally, Deutsche Bank AG purchased a new stake in Eastern during the fourth quarter worth $98,000. Institutional investors own 76.99% of the company's stock.

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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