Geode Capital Management LLC Increases Stake in Eastern Bankshares, Inc. (NASDAQ:EBC)

Geode Capital Management LLC has raised its investment in Eastern Bankshares, Inc. (NASDAQ:EBC) by 23.0% during the third quarter, as reported in a recent filing with the SEC. After acquiring an additional 859,136 shares during this period, Geode Capital now holds a total of 4,587,497 shares, representing approximately 2.14% of Eastern Bankshares. This stake is valued at $75,203,000 based on the latest filings.

Other institutional investors have also made changes to their positions in Eastern Bankshares. For instance, M&T Bank Corp has established a new stake worth around $511,000. Barclays PLC significantly increased its investment, boosting its holdings by 284.1% in the same quarter, now owning 617,306 shares valued at $10,118,000 after acquiring an additional 456,586 shares. Furthermore, Nomura Asset Management Co. Ltd. expanded its ownership by 127.8%, now holding 1,800 shares valued at $30,000 after purchasing 1,010 shares. Orion Portfolio Solutions LLC and EP Wealth Advisors LLC also acquired new shares during this period, valued at $180,000 and $232,000, respectively. In total, approximately 71.68% of Eastern Bankshares’ stock is held by institutional investors.

Analyst Insights on Eastern Bankshares

On a different note, analyst firm Keefe, Bruyette & Woods has raised its target price for Eastern Bankshares from $19.00 to $21.00, designating the company with an “outperform” rating in their research note published on December 4.

Insider Trading Activity

In related news, on December 2, Director Deborah C. Jackson sold 5,713 shares of Eastern Bankshares’ stock at an average price of $18.56, totaling approximately $106,033.28. Post-transaction, Jackson retains ownership of 67,284 shares, equating to a value of $1,248,791.04. This sale indicates a 7.83% reduction in her ownership stake. The information was disclosed in a filing with the SEC.

Recent Stock Performance

The stock opened at $17.26 on Friday, reflecting a market capitalization of $3.71 billion and a price-to-earnings ratio of 7.44. Eastern Bankshares’ shares have witnessed fluctuations, with a 50-day moving average of $17.74 and a 200-day moving average of $16.16. Over the past year, the stock has reached a low of $12.22 and a high of $19.40.

In terms of earnings, Eastern Bankshares reported their quarterly results on October 24, posting earnings per share (EPS) of $0.25, which fell short of the consensus estimate of $0.33 by $0.08. The company recorded revenues of $299.55 million, surpassing analysts’ expectations of $215.92 million, achieving a net margin of 38.00% and a return on equity of 4.49%. For the current fiscal year, analysts anticipate Eastern Bankshares to report an average EPS of 0.98.

Dividend Declaration

Additionally, Eastern Bankshares announced a quarterly dividend of $0.12, which was paid on December 16 to investors recorded as of December 3. This marks an increase from the previous dividend of $0.11, leading to an annualized total of $0.48 and a yield of 2.78%. Eastern Bankshares’ dividend payout ratio stands at 20.69%.

Overview of Eastern Bankshares

Eastern Bankshares, Inc. serves as the parent company of Eastern Bank, providing a range of banking services primarily to retail, commercial, and small business customers. Their offerings include deposit accounts, interest checking accounts, money market accounts, savings accounts, and certificates of deposit.

Geode, Eastern, Investment