Eastern Bankshares, Inc.
$19.29
-0.76%Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. It operates in two segments, Banking Business and Insurance Agency Business. The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and time certificates of deposits, as well as debit and credit cards. It also offers commercial and industrial loans, commercial real estate and construction loans, small business loans, residential real estate loans, home equity, and lines of credit, as well as other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides cash reserves, cash management, merchant, escrow express, government banking, international banking, interest on lawyers trust accounts, retirement planning, and business telephone banking services, as well as products and services for not-for-profit and healthcare. Further, it offers trust and investment products and services; community development and asset-based lending services; financial planning, portfolio management, wealth management, private banking, and fiduciary products; online, mobile, and telephone banking services; and automated lock box collection and account reconciliation services, as well as various insurance products. As of December 31, 2021, the company operated 105 branch offices in eastern Massachusetts and southern New Hampshire; and 23 non-branch offices in eastern Massachusetts, one office in New Hampshire, and one office in Rhode Island. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 48.2).
Valuation inputs: P/E 48.2, earnings yield +2.1%, momentum -0.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +2.0%, ROIC -0.7%).
Profitability stack: net margin +8.3%, ROE +2.0%, ROIC -0.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +85.8%, momentum -0.8%, net margin +8.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Eastern Bankshares, Inc. Market vs Earnings Trajectory
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Eastern Bankshares, Inc. Fair Value Envelope
Eastern Bankshares, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Eastern Bankshares, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Eastern Bankshares, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Eastern Bankshares, Inc. Street Expectations Map
Wall Street analysts project that EBC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 23.13, with estimates ranging from a low of 22.00 to a high of 24.00.
The consensus 1-year price target stands at 23.13, with estimates ranging from a low of 22.00 to a high of 24.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Eastern Bankshares, Inc. Insider Positioning
During the last 12 months, insiders have purchased $3.05M and sold $6.96M worth of EBC shares, resulting in $3.90M of net selling activity.
3 Months
5.0K
92.25K
0
0.00
+92K
+$92K
3-6 Months
5.0K
95.85K
35.8K
730.94K
-635K
-$635K
6-9 Months
70.0K
1.20M
327.3K
6.23M
-5.0M
-$5.03M
9-12 Months
99.2K
1.67M
0
0.00
+1.7M
+$1.67M
Top Buyers
Rivers Robert Francis
Director, Officer: Executive Chair
$1.61M
Rosato R David
Officer: Chief Financial Officer
$528K
Sheahan Denis K
Director, Officer: Chief Executive Officer
$497K
Miller Quincy Lee
Officer: President
$234K
Henry Kathleen Cloherty
Officer: Executive Vp, General Counsel
$100K
Top Sellers
Casey Joseph F
Director
$6.14M
Westermann Donald Michael
Officer: Chief Information Officer
$427K
Ahlquist David Andrew
Officer: Svp, Chief Accounting Officer
$217K
Borgen Luis
Director
$173K
Sheahan Denis K
Director, Officer: Chief Executive Officer
$13
Insider Activity Analysis
Net Insider Sentiment
Negative insider sentiment with $3.90M net selling. Selling notably exceeds buying, warranting closer scrutiny of company fundamentals.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
ebc Dividend History
Learning Layer
Related Guides
Build conviction on EBC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.