Fintel reports that on September 12, 2023, Seaport Global initiated coverage of Eastern Bankshares (NASDAQ:EBC) with a Buy recommendation.
Analyst Price Forecast Suggests 13.82% Upside
As of August 31, 2023, the average one-year price target for Eastern Bankshares is 15.17. The forecasts range from a low of 14.14 to a high of $17.32. The average price target represents an increase of 13.82% from its latest reported closing price of 13.33.
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The projected annual revenue for Eastern Bankshares is 673MM, an increase of 59.99%. The projected annual non-GAAP EPS is 1.63.
Eastern Bankshares Declares $0.10 Dividend
On July 27, 2023 the company declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of September 1, 2023 will receive the payment on September 15, 2023. Previously, the company paid $0.10 per share.
At the current share price of $13.33 / share, the stock's dividend yield is 3.00%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.28%, the lowest has been 1.23%, and the highest has been 4.27%. The standard deviation of yields is 0.84 (n=135).
The current dividend yield is 0.86 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is -1.68. 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.
The company's 3-Year dividend growth rate is -0.20%.
What is the Fund Sentiment?
There are 426 funds or institutions reporting positions in Eastern Bankshares. This is a decrease of 44 owner(s) or 9.36% in the last quarter. Average portfolio weight of all funds dedicated to EBC is 0.15%, a decrease of 18.73%. Total shares owned by institutions increased in the last three months by 0.45% to 117,399K shares. 
The put/call ratio of EBC is 0.30, indicating a bullish outlook.
What are Other Shareholders Doing?
T. Rowe Price Investment Management holds 13,027K shares representing 8.01% ownership of the company. In it's prior filing, the firm reported owning 8,348K shares, representing an increase of 35.92%. The firm increased its portfolio allocation in EBC by 44.15% over the last quarter.
FCPVX - Fidelity Small Cap Value Fund holds 7,410K shares representing 4.56% ownership of the company. In it's prior filing, the firm reported owning 5,870K shares, representing an increase of 20.78%. The firm increased its portfolio allocation in EBC by 2.32% over the last quarter.
PRSVX - T. Rowe Price Small-Cap Value Fund holds 6,027K shares representing 3.71% ownership of the company. In it's prior filing, the firm reported owning 4,643K shares, representing an increase of 22.97%. The firm increased its portfolio allocation in EBC by 24.65% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,962K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 4,883K shares, representing an increase of 1.59%. The firm decreased its portfolio allocation in EBC by 8.84% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 4,097K shares representing 2.52% ownership of the company. In it's prior filing, the firm reported owning 4,151K shares, representing a decrease of 1.32%. The firm decreased its portfolio allocation in EBC by 8.70% over the last quarter.
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.
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