Eastern Bankshares (NASDAQ:EBC) Announces Earnings Results, Beats Estimates By $0.03 EPS

Eastern Bankshares (NASDAQ:EBC) issued its quarterly earnings results on Thursday. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.03, Zacks reports. Eastern Bankshares had a return on equity of 8.62% and a net margin of 8.32%.The business had revenue of $243.40 million during the quarter, compared to analysts’ expectations of $287.09 million.

Eastern Bankshares Stock Down 1.5%

NASDAQ:EBC opened at $20.05 on Friday. The firm’s 50 day simple moving average is $18.97 and its 200 day simple moving average is $17.70. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.89 and a quick ratio of 0.89. Eastern Bankshares has a one year low of $13.51 and a one year high of $20.89. The company has a market cap of $4.23 billion, a PE ratio of 48.90 and a beta of 0.81.

Eastern Bankshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Friday, March 6th. Eastern Bankshares’s dividend payout ratio (DPR) is 208.00%.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on EBC. Zacks Research raised Eastern Bankshares from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Eastern Bankshares in a research report on Friday, December 5th. Barclays started coverage on shares of Eastern Bankshares in a report on Wednesday, December 17th. They set an “equal weight” rating and a $22.00 price target for the company. TD Cowen restated a “buy” rating on shares of Eastern Bankshares in a research report on Wednesday, January 7th. Finally, Hovde Group initiated coverage on shares of Eastern Bankshares in a research note on Monday, January 5th. They issued an “outperform” rating and a $22.50 price target on the stock. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $21.88.

Key Stories Impacting Eastern Bankshares

Here are the key news stories impacting Eastern Bankshares this week:

• Positive Sentiment: Q4 EPS beat — Eastern reported $0.44 EPS vs. the $0.41 consensus, which is supportive for the earnings story and suggests underlying profitability outperformed expectations. Read More.
• Positive Sentiment: Strong loan growth highlighted — Company commentary and press coverage emphasize robust loan growth in the quarter, a key revenue driver for a regional bank and a constructive signal for future interest income. Read More.
• Positive Sentiment: Dividend declared — Eastern declared a $0.13 quarterly dividend (annualized yield ~2.5%), giving income-focused investors a tangible return and supporting the stock’s income case ahead of the ex-dividend date. (Dividend announcement released Jan 22)
• Neutral Sentiment: Management materials available — The earnings call transcript and slide deck provide detail on drivers (loan mix, net interest income, expense and credit trends). Investors should review management’s color on margin trajectory and deposit dynamics for forward guidance. Read More. · Read More.
• Negative Sentiment: Revenue missed expectations — Reported revenue of $243.4M fell well short of the ~$287M analysts expected, which tempers the positive EPS surprise and raises questions on fee and noninterest income performance. Read More.
• Negative Sentiment: Mild profitability and valuation considerations — Q4 net margin (~4.97%) and ROE (~7.94%) remain modest; the stock trades at a high P/E (~80x) which may make investors sensitive to revenue and margin misses. Read More.
• Neutral Sentiment: Market reaction — Trading picked up on the print and the stock is moving lower as the market digests the mix of an EPS beat, loan growth and the revenue shortfall; watch upcoming analyst commentary and any forward guidance for near-term direction. Read More.

Insider Buying and Selling at Eastern Bankshares

In related news, Director Joseph F. Casey sold 322,771 shares of the stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $19.03, for a total value of $6,142,332.13. Following the completion of the sale, the director directly owned 36,112 shares in the company, valued at $687,211.36. This represents a 89.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Robert Francis Rivers bought 50,000 shares of the stock in a transaction that occurred on Tuesday, October 28th. The shares were bought at an average cost of $17.21 per share, with a total value of $860,500.00. Following the completion of the transaction, the insider owned 403,274 shares in the company, valued at $6,940,345.54. The trade was a 14.15% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Eastern Bankshares

Several institutional investors and hedge funds have recently made changes to their positions in EBC. Royal Bank of Canada lifted its stake in shares of Eastern Bankshares by 38.0% in the first quarter. Royal Bank of Canada now owns 198,421 shares of the company’s stock worth $3,254,000 after acquiring an additional 54,664 shares during the period. AQR Capital Management LLC bought a new position in Eastern Bankshares during the 1st quarter worth approximately $954,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Eastern Bankshares by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 114,881 shares of the company’s stock worth $1,884,000 after purchasing an additional 5,028 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Eastern Bankshares by 7.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 432,405 shares of the company’s stock worth $7,091,000 after purchasing an additional 29,781 shares during the period. Finally, Jane Street Group LLC boosted its stake in shares of Eastern Bankshares by 789.9% in the 1st quarter. Jane Street Group LLC now owns 545,589 shares of the company’s stock valued at $8,948,000 after purchasing an additional 484,277 shares during the last quarter. Institutional investors and hedge funds 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.