Eastern (NASDAQ:EML) Stock Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• Eastern shares moved above their 200-day moving average, trading as high as $26.36 and last changing hands at $25.93, which may signal improving technical momentum.
• Recent earnings were weak: Eastern reported EPS of $0.11 versus the $0.50 consensus and revenue of $59.68 million versus expectations of $67.74 million.
• Insider buying and steady income support the stock, with two directors purchasing shares in June and the company paying a quarterly dividend of $0.11, equal to a 1.7% annualized yield.

Shares of Eastern Company (The) (NASDAQ:EML - Get Free Report) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $20.83 and traded as high as $26.36. Eastern shares last traded at $25.93, with a volume of 22,484 shares.

Analysts Set New Price Targets

Several analysts recently commented on the company. Weiss Ratings restated a "hold (c)" rating on shares of Eastern in a research report on Wednesday, June 24th. Royal Bank Of Canada lowered Eastern from a "moderate buy" rating to a "hold" rating in a research report on Monday, April 13th. Two analysts have rated the stock with a Hold rating, According to MarketBeat, Eastern has a consensus rating of "Hold".

Eastern Stock Performance

The company has a fifty day moving average price of $22.99 and a two-hundred day moving average price of $20.83. The firm has a market cap of $156.36 million, a price-to-earnings ratio of 27.01 and a beta of 0.82. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.52 and a quick ratio of 1.64.

Eastern (NASDAQ:EML - Get Free Report) last released 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). Eastern had a return on equity of 5.46% and a net margin of 2.41%.The firm had revenue of $59.68 million for the quarter, compared to analyst estimates of $67.74 million.

Eastern Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 15th were paid a $0.11 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $0.44 annualized dividend and a dividend yield of 1.7%. Eastern's payout ratio is currently 45.83%.

Insider Transactions at Eastern

In other Eastern news, Director John Everets bought 1,310 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was acquired at an average cost of $21.40 per share, with a total value of $28,034.00. Following the completion of the purchase, the director directly owned 142,504 shares in the company, valued at approximately $3,049,585.60. This trade represents a 0.93% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, Director Peggy Scott bought 1,176 shares of Eastern stock in a transaction that occurred on Tuesday, June 16th. The shares were acquired at an average price of $21.40 per share, with a total value of $25,166.40. Following the completion of the acquisition, the director directly owned 26,262 shares of the company's stock, valued at $562,006.80. This represents a 4.69% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 13,264 shares of company stock valued at $285,179 in the last quarter. Insiders own 18.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets lifted its position in shares of 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 acquiring an additional 577 shares during the last quarter. Focus Partners Wealth acquired a new position in shares of Eastern in the 3rd quarter worth $40,000. Tower Research Capital LLC TRC grew its holdings in shares of Eastern by 295.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,738 shares of the industrial products company's stock worth $40,000 after acquiring an additional 1,299 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Eastern during the second quarter worth $70,000. Finally, Fifth Third Bancorp acquired a new stake in shares of Eastern during the first quarter worth $73,000. Institutional investors and hedge funds own 76.99% of the company's stock.

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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