Hsbc Holdings PLC Invests $2.63 Million in Eastern Bankshares, Inc. $EBC

Key Points

• HSBC Holdings PLC disclosed a new fourth-quarter stake in Eastern Bankshares, buying 142,975 shares worth about $2.63 million.
• Eastern Bankshares reported mixed quarterly results, with EPS of $0.40 missing estimates and revenue of $295.9 million below expectations. Analysts still lean positive overall, with a consensus rating of Moderate Buy and a target price of $23.08.
• The company recently raised its quarterly dividend to $0.15 per share from $0.13, giving it an annualized yield of about 2.7%.

Hsbc Holdings PLC purchased a new stake in shares of Eastern Bankshares, Inc. (NASDAQ:EBC - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 142,975 shares of the company's stock, valued at approximately $2,634,000. Hsbc Holdings PLC owned approximately 0.06% of Eastern Bankshares at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of the business. EverSource Wealth Advisors LLC increased its holdings in shares of Eastern Bankshares by 87.1% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,637 shares of the company's stock valued at $30,000 after purchasing an additional 762 shares during the period. Danske Bank A S lifted its position in shares of Eastern Bankshares by 533.3% in the fourth quarter. Danske Bank A S now owns 1,900 shares of the company's stock worth $35,000 after purchasing an additional 1,600 shares in the last quarter. Allworth Financial LP boosted its holdings in shares of Eastern Bankshares by 36.4% during the third quarter. Allworth Financial LP now owns 2,189 shares of the company's stock worth $40,000 after purchasing an additional 584 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Eastern Bankshares during the fourth quarter worth approximately $40,000. Finally, Flagship Harbor Advisors LLC purchased a new position in Eastern Bankshares during the fourth quarter valued at approximately $52,000. 71.68% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Eastern Bankshares

In other news, Director Luis Borgen sold 1,710 shares of the firm's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $22.71, for a total transaction of $38,834.10. Following the transaction, the director owned 20,475 shares in the company, valued at approximately $464,987.25. This trade represents a 7.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 1.26% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on EBC. Stephens assumed coverage on shares of Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price objective on the stock. Barclays lowered their price target on shares of Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating on the stock in a report on Monday, April 27th. DA Davidson started coverage on shares of Eastern Bankshares in a research note on Friday, May 15th. They issued a "buy" rating and a $24.00 price target on the stock. TD Cowen dropped their price target on shares of Eastern Bankshares from $23.00 to $22.00 and set a "buy" rating on the stock in a research note on Monday, April 27th. Finally, Piper Sandler increased their price objective on Eastern Bankshares from $23.00 to $24.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $23.08.

Eastern Bankshares Trading Up 0.6%

Shares of NASDAQ EBC opened at $22.31 on Friday. The business has a 50 day simple moving average of $20.59 and a 200 day simple moving average of $20.16. Eastern Bankshares, Inc. has a 52 week low of $14.88 and a 52 week high of $22.89. The stock has a market cap of $5.16 billion, a price-to-earnings ratio of 12.53 and a beta of 0.67. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.91 and a current ratio of 0.91.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.04). The business had revenue of $295.90 million for the quarter, compared to the consensus estimate of $308.68 million. Eastern Bankshares had a net margin of 26.28% and a return on equity of 8.42%. On average, research analysts predict that Eastern Bankshares, Inc. will post 1.87 earnings per share for the current fiscal year.

Eastern Bankshares Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 22nd. Stockholders of record on Friday, June 5th were paid a dividend of $0.15 per share. This is a positive change from Eastern Bankshares's previous quarterly dividend of $0.13. The ex-dividend date was Friday, June 5th. This represents a $0.60 annualized dividend and a dividend yield of 2.7%. Eastern Bankshares's dividend payout ratio (DPR) is currently 33.71%.

Eastern Bankshares Profile

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.

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