Eastern Bankshares (NASDAQ:EBC) Reaches New 1-Year High – Still a Buy?

Eastern Bankshares, Inc. (NASDAQ:EBC)’s share price reached a new 52-week high on Wednesday . The stock traded as high as $20.27 and last traded at $20.27, with a volume of 3002198 shares changing hands. The stock had previously closed at $19.16.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on EBC shares. Hovde Group initiated coverage on Eastern Bankshares in a research note on Monday, January 5th. They issued an “outperform” rating and a $22.50 price target for the company. Zacks Research raised shares of Eastern Bankshares from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Eastern Bankshares in a research note on Monday, December 29th. TD Cowen restated a “buy” rating on shares of Eastern Bankshares in a research report on Wednesday, January 7th. Finally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Eastern Bankshares in a report on Friday, December 5th. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $21.88.

Eastern Bankshares Stock Performance

The stock has a market capitalization of $4.27 billion, a price-to-earnings ratio of 13.12 and a beta of 0.81. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.89 and a current ratio of 0.89. The stock has a fifty day simple moving average of $18.81 and a two-hundred day simple moving average of $17.63.

Eastern Bankshares (NASDAQ:EBC) last announced its quarterly earnings data on Thursday, October 23rd. The company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.03). The company had revenue of $244.99 million for the quarter, compared to analyst estimates of $243.03 million. Eastern Bankshares had a net margin of 4.97% and a return on equity of 7.94%. Analysts forecast that Eastern Bankshares, Inc. will post 1.49 earnings per share for the current fiscal year.

Eastern Bankshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Wednesday, December 3rd were issued a dividend of $0.13 per share. The ex-dividend date was Wednesday, December 3rd. This represents a $0.52 annualized dividend and a yield of 2.6%. Eastern Bankshares’s dividend payout ratio is presently 208.00%.

Insider Buying and Selling at Eastern Bankshares

In other news, Director Joseph F. Casey sold 322,771 shares of Eastern Bankshares stock in a transaction dated Wednesday, November 26th. The shares were sold at an average price of $19.03, for a total transaction of $6,142,332.13. Following the completion of the transaction, the director directly owned 36,112 shares in the company, valued at $687,211.36. This trade represents a 89.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO R David Rosato acquired 10,000 shares of the company’s stock in a transaction on Tuesday, October 28th. The shares were bought at an average price of $17.08 per share, for a total transaction of $170,800.00. Following the completion of the purchase, the chief financial officer owned 30,000 shares in the company, valued at approximately $512,400. This represents a 50.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Eastern Bankshares

Several large investors have recently modified their holdings of the stock. Assetmark Inc. raised its stake in Eastern Bankshares by 8,112.5% in the 2nd quarter. Assetmark Inc. now owns 1,971 shares of the company’s stock valued at $30,000 after acquiring an additional 1,947 shares during the period. Corsicana & Co. bought a new position in Eastern Bankshares during the third quarter worth about $36,000. Allworth Financial LP increased its stake in shares of Eastern Bankshares by 36.4% in 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 in the last quarter. Federated Hermes Inc. purchased a new position in shares of Eastern Bankshares in the third quarter worth about $49,000. Finally, Flagship Harbor Advisors LLC bought a new stake in shares of Eastern Bankshares in the fourth quarter valued at approximately $52,000. Hedge funds and other institutional investors own 71.68% of the company’s stock.

Eastern Bankshares Company 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.