Vanguard Group Inc. Raises Stock Position in Eastern Bankshares, Inc. $EBC

Key Points

• Vanguard Group boosted its stake in Eastern Bankshares by 12.6% in Q4, now owning 21,874,030 shares—about 10.38% of the company—worth roughly $403.1 million.
• Eastern Bankshares raised its quarterly dividend to $0.15 (annualized $0.60), implying a ~3.0% yield; the ex-dividend date is June 5 and the payment is scheduled for June 22.
• The company missed quarterly expectations, reporting $0.40 EPS vs. a $0.44 consensus and revenue of $295.9M vs. $308.7M, with a market cap near $4.75B and a PE of about 11.4.

Vanguard Group Inc. boosted its position in shares of Eastern Bankshares, Inc. (NASDAQ:EBC - Free Report) by 12.6% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 21,874,030 shares of the company's stock after purchasing an additional 2,440,017 shares during the period. Vanguard Group Inc. owned approximately 10.38% of Eastern Bankshares worth $403,138,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Impax Asset Management Group plc raised its stake in shares of Eastern Bankshares by 27.5% in the 4th quarter. Impax Asset Management Group plc now owns 1,275,000 shares of the company's stock valued at $23,498,000 after acquiring an additional 275,000 shares during the period. Arizona State Retirement System raised its stake in shares of Eastern Bankshares by 6.1% in the 4th quarter. Arizona State Retirement System now owns 59,729 shares of the company's stock valued at $1,101,000 after acquiring an additional 3,429 shares during the period. Barrett & Company Inc. raised its stake in shares of Eastern Bankshares by 65.7% in the 4th quarter. Barrett & Company Inc. now owns 13,545 shares of the company's stock valued at $250,000 after acquiring an additional 5,369 shares during the period. Ruffer LLP purchased a new stake in shares of Eastern Bankshares in the 4th quarter valued at approximately $2,956,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its stake in shares of Eastern Bankshares by 4.4% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 76,645 shares of the company's stock valued at $1,413,000 after acquiring an additional 3,238 shares during the period. 71.68% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, CFO R David Rosato bought 5,000 shares of the stock in a transaction dated Thursday, March 5th. The stock was acquired at an average price of $19.17 per share, for a total transaction of $95,850.00. Following the acquisition, the chief financial officer owned 45,000 shares in the company, valued at approximately $862,650. This represents a 12.50% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.26% of the company's stock.

Eastern Bankshares Stock Performance

NASDAQ EBC opened at $20.26 on Thursday. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.05. Eastern Bankshares, Inc. has a 52 week low of $14.10 and a 52 week high of $22.58. The stock has a market capitalization of $4.75 billion, a PE ratio of 11.38 and a beta of 0.70. The firm has a 50 day moving average of $19.81 and a two-hundred day moving average of $19.40.

Eastern Bankshares (NASDAQ:EBC - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The company reported $0.40 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.04). Eastern Bankshares had a return on equity of 8.60% and a net margin of 26.28%.The firm had revenue of $295.90 million for the quarter, compared to analyst estimates of $308.68 million. As a group, research analysts expect that Eastern Bankshares, Inc. will post 1.88 EPS for the current fiscal year.

Eastern Bankshares Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Stockholders of record on Friday, June 5th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, June 5th. This is a positive change from Eastern Bankshares's previous quarterly dividend of $0.13. Eastern Bankshares's dividend payout ratio (DPR) is currently 29.21%.

Wall Street Analyst Weigh In

EBC has been the topic of a number of research analyst reports. Stephens initiated coverage on shares of Eastern Bankshares in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price target on the stock. TD Cowen cut their target price 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. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Eastern Bankshares in a research note on Friday, March 27th. Zacks Research raised shares of Eastern Bankshares from a "strong sell" rating to a "hold" rating in a research note on Tuesday, January 13th. Finally, Barclays cut their target price on shares of Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating on the stock in a research note on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Eastern Bankshares has a consensus rating of "Moderate Buy" and an average target price of $22.70.

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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