William Blair Investment Management LLC Lowers Stock Position in Eastern Bankshares, Inc. $EBC

Key Points

• William Blair Investment Management cut its Eastern Bankshares stake by 9.3% in the fourth quarter, selling 194,350 shares and ending with 1,893,928 shares valued at about $34.9 million.
• Analyst sentiment remains positive overall, with a Moderate Buy consensus and average price target of $22.92. Recent calls included buy/overweight ratings from DA Davidson, Stephens, and Piper Sandler, though Barclays trimmed its target to $22.
• Eastern Bankshares raised its quarterly dividend to $0.15 per share from $0.13, implying a 3.0% annualized yield. The company also reported Q1 results below expectations, with EPS of $0.40 versus the $0.44 estimate.

William Blair Investment Management LLC lessened its holdings in Eastern Bankshares, Inc. (NASDAQ:EBC - Free Report) by 9.3% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 1,893,928 shares of the company's stock after selling 194,350 shares during the period. William Blair Investment Management LLC owned about 0.90% of Eastern Bankshares worth $34,905,000 at the end of the most recent quarter.

Several other hedge funds have also recently modified their holdings of the business. EverSource Wealth Advisors LLC raised its stake in shares of Eastern Bankshares by 87.1% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,637 shares of the company's stock worth $30,000 after acquiring an additional 762 shares in the last quarter. Danske Bank A S raised its stake in shares of Eastern Bankshares by 533.3% during the 4th quarter. Danske Bank A S now owns 1,900 shares of the company's stock worth $35,000 after acquiring an additional 1,600 shares in the last quarter. Allworth Financial LP raised its stake in shares of Eastern Bankshares by 36.4% during the 3rd quarter. Allworth Financial LP now owns 2,189 shares of the company's stock worth $40,000 after acquiring an additional 584 shares in the last quarter. Federated Hermes Inc. bought a new position in shares of Eastern Bankshares during the 3rd quarter worth approximately $49,000. Finally, Flagship Harbor Advisors LLC bought a new position in shares of Eastern Bankshares during the 4th quarter worth approximately $52,000. Hedge funds and other institutional investors own 71.68% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on EBC shares. Barclays reduced their price objective on shares of Eastern Bankshares from $23.00 to $22.00 and set an "equal weight" rating for the company in a research note on Monday, April 27th. DA Davidson started coverage on shares of Eastern Bankshares in a research note on Friday, May 15th. They set a "buy" rating and a $24.00 price objective for the company. Weiss Ratings upgraded shares of Eastern Bankshares from a "hold (c)" rating to a "buy (b)" rating in a research note on Tuesday, May 12th. Stephens started coverage on shares of Eastern Bankshares in a research note on Wednesday, April 15th. They set an "overweight" rating and a $24.00 price objective for the company. Finally, Piper Sandler started coverage on shares of Eastern Bankshares in a research note on Monday, March 16th. They set an "overweight" rating and a $23.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $22.92.

Eastern Bankshares Stock Performance

Shares of Eastern Bankshares stock opened at $19.85 on Monday. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.16. Eastern Bankshares, Inc. has a 12-month low of $14.10 and a 12-month high of $22.58. The firm has a market capitalization of $4.59 billion, a price-to-earnings ratio of 11.15 and a beta of 0.70. The firm's 50 day simple moving average is $19.80 and its two-hundred day simple moving average is $19.55.

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

Eastern Bankshares Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 22nd. Shareholders of record on Friday, June 5th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a 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%.

Insider Transactions at Eastern Bankshares

In related news, CFO R David Rosato purchased 5,000 shares of the business's stock in a transaction on Thursday, March 5th. The shares were acquired at an average price of $19.17 per share, for a total transaction of $95,850.00. Following the purchase, the chief financial officer owned 45,000 shares of the company's stock, valued at $862,650. This trade represents a 12.50% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.26% of the company's stock.

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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