Eastern Bankshares Shares Fall After Earnings Disappointment

Eastern Bankshares, Inc. (NASDAQ:EBC) experienced a significant drop in share price early on Friday due to disappointing earnings results. The company’s stock, which had closed the previous day at $16.72, opened dramatically lower at $16.06. As of the latest trading, Eastern Bankshares shares were still at $16.06, with a trading volume of 161,488 shares.

The earnings report revealed that Eastern Bankshares achieved earnings per share of $0.25, which was $0.08 less than the expected $0.33. Despite the earnings miss, the company reported a net margin of 48.38% and a return on equity of 5.06%. Revenue for the quarter reached $299.55 million, surpassing analyst estimates of $215.92 million. Comparatively, the same quarter last year saw earnings of $0.32 per share.

Recent Analyst Opinions

Several Wall Street analysts have commented on Eastern Bankshares. Notably, JPMorgan Chase & Co. raised their rating from “underweight” to “neutral” and increased their price target from $14.00 to $18.50. This upgrade occurred in a report published on August 6th. Additionally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating with a price target raised from $17.00 to $19.00, noted in a report on July 29th.

Insider Transactions

In other developments, company President Quincy Lee Miller sold 12,676 shares on September 4th at an average price of $16.66, totaling $211,182.16 for the transaction. This sale was disclosed via the SEC filings. Currently, insiders hold about 1.15% of the firm’s stock.

Institutional Investor Changes

Recent changes among institutional investors regarding Eastern Bankshares have also been noted. V Square Quantitative Management LLC made a new purchase in the third quarter valued at $25,000. Similarly, Sachetta LLC acquired a new stake worth $35,000 in the second quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA significantly increased their holdings by 1,155.9% in the third quarter, now owning 4,333 shares valued at $72,000 after acquiring an additional 3,988 shares. Other firms like Signaturefd LLC and CWM LLC also expanded their investments significantly.

Company Overview

Eastern Bankshares, Inc. serves as the bank holding company for Eastern Bank, offering retail, commercial, and small business banking products and services. Their offerings include various types of deposit accounts such as interest checking, money market accounts, and certificates of deposit.

Stock Performance Overview

The current market capitalization of Eastern Bankshares stands at $2.81 billion, showcasing a PE ratio of 5.59 and a beta of 0.89. The stock has a 50-day moving average of $16.42 and a long-term moving average of $14.85. Financial ratios indicate a debt-to-equity ratio of 0.01. Furthermore, both the current and quick ratios are at 0.84, indicating sufficient liquidity.

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