Eastern Bankshares (NASDAQ:EBC) Reaches New 12-Month High – Still a Buy?

Shares of Eastern Bankshares, Inc. (NASDAQ:EBC) hit a new 52-week high on Thursday . The stock traded as high as $23.09 and last traded at $23.1620, with a volume of 150636 shares. The stock had previously closed at $22.68.

Wall Street Analyst Weigh In

Several brokerages have commented on EBC. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Eastern Bankshares in a research report on Monday, June 8th. TD Cowen reduced 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 report on Monday, April 27th. Barclays decreased their price target 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. Weiss Ratings raised shares of Eastern Bankshares from a “hold (c)” rating to a “buy (b)” rating in a research report on Tuesday, May 12th. Finally, DA Davidson initiated 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 on the stock. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $23.08.

Eastern Bankshares Stock Up 2.6%

The stock has a 50 day simple moving average of $20.72 and a 200-day simple moving average of $20.25. The firm has a market cap of $5.38 billion, a PE ratio of 13.08 and a beta of 0.67. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.91 and a quick ratio of 0.91.

Eastern Bankshares (NASDAQ:EBC) last released its 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 8.42% and a net margin of 26.28%.The company had revenue of $295.90 million during the quarter, compared to the consensus estimate of $308.68 million. Sell-side analysts predict that Eastern Bankshares, Inc. will post 1.87 EPS for the current fiscal year.

Eastern Bankshares Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 22nd. Investors of record on Friday, June 5th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was 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 presently 33.71%.

Insider Buying and Selling

In other Eastern Bankshares news, Director Luis Borgen sold 1,710 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $22.71, for a total transaction of $38,834.10. Following the completion of the sale, the director directly 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 hyperlink. Company insiders own 1.26% of the company’s stock.

Institutional Investors Weigh In On Eastern Bankshares

A number of institutional investors have recently made changes to their positions in EBC. EverSource Wealth Advisors LLC raised its holdings in Eastern Bankshares by 87.1% in 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 during the last quarter. Danske Bank A S boosted its stake in Eastern Bankshares by 533.3% during the 4th quarter. Danske Bank A S now owns 1,900 shares of the company’s stock valued at $35,000 after purchasing an additional 1,600 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Eastern Bankshares in the 4th quarter worth $40,000. Allworth Financial LP increased its holdings in shares of Eastern Bankshares by 36.4% in the 3rd quarter. Allworth Financial LP now owns 2,189 shares of the company’s stock worth $40,000 after purchasing an additional 584 shares in the last quarter. Finally, Flagship Harbor Advisors LLC purchased a new position in shares of Eastern Bankshares in the fourth quarter worth $52,000. Hedge funds and other institutional investors own 71.68% of the company’s stock.

About Eastern Bankshares

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.