On January 30, 2023, Janney Montgomery Scott downgraded their outlook for Eastern Bankshares from Buy to Neutral.
Analyst Price Forecast Suggests 45.53% Upside
As of February 4, 2023, the average one-year price target for Eastern Bankshares is $23.46. The forecasts range from a low of $22.22 to a high of $26.25. The average price target represents an increase of 45.53% from its latest reported closing price of $16.12.
The projected annual revenue for Eastern Bankshares is $673MM, a decrease of 7.36%. The projected annual EPS is $1.63, an increase of 35.00%.
Eastern Bankshares Declares $0.10 Dividend
Eastern Bankshares said on October 27, 2022 that its board of directors declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of December 1, 2022 received the payment on December 15, 2022. Previously, the company paid $0.10 per share.
At the current share price of $16.12 / share, the stock's dividend yield is 2.48%. Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 1.23%, and the highest has been 2.56%. The standard deviation of yields is 0.29 (n=91).
The current dividend yield is 2.42 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.33. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
What are large shareholders doing?
FCPVX - Fidelity Small Cap Value Fund holds 5,870,100 shares representing 3.59% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,783,421 shares representing 2.93% ownership of the company. In it's prior filing, the firm reported owning 4,847,665 shares, representing a decrease of 1.34%. The firm increased its portfolio allocation in EBC by 9.43% over the last quarter.
Wellington Management Group Llp holds 4,674,284 shares representing 2.86% ownership of the company. In it's prior filing, the firm reported owning 4,087,858 shares, representing an increase of 12.55%. The firm decreased its portfolio allocation in EBC by 82.11% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 4,075,407 shares representing 2.49% ownership of the company. In it's prior filing, the firm reported owning 4,147,876 shares, representing a decrease of 1.78%. The firm increased its portfolio allocation in EBC by 9.01% over the last quarter.
Capital Research Global Investors holds 3,545,440 shares representing 2.17% ownership of the company. In it's prior filing, the firm reported owning 2,896,164 shares, representing an increase of 18.31%. The firm increased its portfolio allocation in EBC by 37.38% over the last quarter.
Fund Sentiment
There are 459 funds or institutions reporting positions in Eastern Bankshares. This is a decrease of 3 owner(s) or 0.65%.
Average portfolio weight of all funds dedicated to US:EBC is 0.2601%, an increase of 1.4633%. Total shares owned by institutions increased in the last three months by 2.89% to 116,689K shares.
Eastern Bankshares Background Information
(This description is provided by the company.)
Founded in 1818, Boston-based Eastern Bank is America’s oldest and largest mutual bank, with $11 billion in assets and over 115 locations serving communities in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. Eastern provides exceptional access to fairly priced banking, investment and insurance products and services for consumers and businesses of all sizes. Eastern Bank, which includes Eastern Wealth Management and Eastern Insurance, is known for its outspoken advocacy and community support that has exceeded more than $125 million in charitable giving since 1999. An inclusive company, Eastern employs 1,900+ deeply committed professionals who value relationships with their customers, colleagues, and communities.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
