Eastern (NASDAQ:EML) Shares Cross Below 200 Day Moving Average - Should You Sell?

Key Points

• Eastern’s shares fell below their 200-day moving average, trading as low as $23.62 versus the $23.85 average, and were last quoted at $23.65.
• Analysts maintain a consensus “Hold” rating, although Wall Street Zen recently upgraded the stock to “Buy.”
• Eastern’s latest quarterly results missed expectations substantially, with EPS of $0.15 versus $0.67 expected and revenue of $61.82 million versus $73.69 million forecast.

Eastern Company (The) (NASDAQ:EML - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $23.85 and traded as low as $23.62. Eastern shares last traded at $23.65, with a volume of 4,542 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on EML. Wall Street Zen raised Eastern from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Weiss Ratings restated a "hold (c)" rating on shares of Eastern in a research report on Monday, September 21st. Two equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold".

Eastern Stock Down 2.7%

The company has a current ratio of 2.80, a quick ratio of 1.32 and a debt-to-equity ratio of 0.34. The stock has a 50-day simple moving average of $25.30 and a 200-day simple moving average of $23.85. The company has a market cap of $142.37 million, a price-to-earnings ratio of 17.65 and a beta of 0.87.

Eastern (NASDAQ:EML - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The industrial products company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.52). The business had revenue of $61.82 million during the quarter, compared to the consensus estimate of $73.69 million. Eastern had a return on equity of 3.38% and a net margin of 3.44%.

Hedge Funds Weigh In On Eastern

Institutional investors and hedge funds have recently bought and sold shares of the stock. Fifth Third Bancorp acquired a new stake in shares of Eastern in the 1st quarter worth approximately $73,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Eastern in the second quarter valued at approximately $549,000. Empowered Funds LLC bought a new position in shares of Eastern in the second quarter valued at approximately $930,000. Sei Investments Co. acquired a new position in shares of Eastern during the first quarter valued at approximately $940,000. Finally, BlackRock Inc. acquired a new position in shares of Eastern during the second quarter valued at approximately $1,128,000. Institutional investors own 76.99% of the company's stock.

Eastern Company Profile

The Eastern Company NASDAQ: EML is a diversified manufacturer of engineered industrial products. Its offerings include locks, latches, access-control hardware, keys, enclosure hardware and other components used in commercial, industrial, transportation and infrastructure applications.

The company serves original equipment manufacturers, distributors and other industrial customers through product lines designed for security, equipment access, vehicle applications and specialized manufacturing needs.

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