Short Interest in Eastern Bankshares, Inc. (NASDAQ:EBC) Expands By 91.8%

Eastern Bankshares, Inc. (NASDAQ:EBC) was the target of a large increase in short interest in June. As of June 30th, there was short interest totaling 18,678,319 shares, an increase of 91.8% from the June 15th total of 9,736,589 shares. Based on an average daily volume of 7,013,541 shares, the short-interest ratio is currently 2.7 days. Approximately 8.2% of the shares of the stock are short sold.

Eastern Bankshares Trading Down 1.9%

Shares of EBC traded down $0.46 on Friday, hitting $23.00. 541,786 shares of the stock traded hands, compared to its average volume of 2,529,113. Eastern Bankshares has a 1 year low of $14.88 and a 1 year high of $23.53. The stock’s 50 day moving average is $20.79 and its two-hundred day moving average is $20.28. The firm has a market capitalization of $5.32 billion, a P/E ratio of 12.92 and a beta of 0.67. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.16.

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 firm had revenue of $295.90 million during the quarter, compared to analysts’ expectations of $308.68 million. As a group, sell-side analysts predict that Eastern Bankshares will post 1.87 earnings per share for the current year.

Eastern Bankshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 22nd. Stockholders of record on Friday, June 5th were given a $0.15 dividend. This is an increase from Eastern Bankshares’s previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, June 5th. Eastern Bankshares’s dividend payout ratio (DPR) is presently 33.71%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on EBC shares. Barclays lowered their target price on Eastern Bankshares from $23.00 to $22.00 and set an “equal weight” rating on the stock in a report on Monday, April 27th. Stephens began coverage on Eastern Bankshares in a report on Wednesday, April 15th. They issued an “overweight” rating and a $24.00 price target for the company. Weiss Ratings upgraded Eastern Bankshares from a “hold (c)” rating to a “buy (b)” rating in a research report on Tuesday, May 12th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Eastern Bankshares in a research note on Monday, June 8th. Finally, DA Davidson initiated coverage on Eastern Bankshares in a research report on Friday, May 15th. They set a “buy” rating and a $24.00 price objective for the company. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $23.08.

Insider Buying and Selling at Eastern Bankshares

In related news, Director Luis Borgen sold 1,710 shares of Eastern Bankshares stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $22.71, for a total transaction of $38,834.10. Following the completion of the transaction, the director directly owned 20,475 shares in the company, valued at $464,987.25. The trade was a 7.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Eastern Bankshares

Several institutional investors have recently added to or reduced their stakes in EBC. Wellington Management Group LLP boosted its stake in Eastern Bankshares by 185.9% in the 4th quarter. Wellington Management Group LLP now owns 7,437,108 shares of the company’s stock worth $137,066,000 after buying an additional 4,835,474 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Eastern Bankshares by 33.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 13,728,558 shares of the company’s stock valued at $253,018,000 after acquiring an additional 3,407,066 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Eastern Bankshares by 12.6% during the 4th quarter. Vanguard Group Inc. now owns 21,874,030 shares of the company’s stock valued at $403,138,000 after acquiring an additional 2,440,017 shares during the last quarter. Norges Bank purchased a new position in shares of Eastern Bankshares during the 4th quarter worth about $33,548,000. Finally, Jennison Associates LLC lifted its holdings in shares of Eastern Bankshares by 28.9% during the 1st quarter. Jennison Associates LLC now owns 6,846,216 shares of the company’s stock worth $133,912,000 after acquiring an additional 1,535,094 shares during the period. 71.68% of the stock is currently owned by institutional investors and hedge funds.

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.