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Eastern Bankshares (EBC) Stock Up on New Share Buyback Plan
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Shares of Eastern Bankshares, Inc. (EBC - Free Report) have rallied 3.6% since the announcement of a new share repurchase program earlier this week. Under the plan, for which it has received “regulatory non-objection”, the company is authorized to buy back up to 8.9 million shares or 5% of EBC’s of common shares outstanding.
Further, EBC noted that the repurchase program, which will expire on Aug 31, 2023, is limited to $200 million worth of shares. Notably, the company’s board of directors can modify or terminate the plan at any time.
Eastern Bankshares will begin buying back shares under this plan later this month subsequent to the completion of its prior share repurchase program. The older plan, which was announced last November, had the authorization to buy back up to nearly 9.3 million shares for up to $225 million over a 12-month period. As of Sep 6, 2022, EBC had repurchased 9.1 million shares for $182 million.
Alongside share repurchases, Eastern Bankshares pays a regular quarterly dividend of 10 cents per share. The last dividend hike was announced this January when it was increased by 25%. It must be noted that the company started paying out dividends effective March 2021.
Based on the last day’s closing price of $19.89, EBC’s dividend currently yields 2.01%, and its payout ratio is 36% of earnings.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Eastern Bankshares will keep enhancing shareholder value.
Over the past six months, shares of EBC have lost 7.5% compared with a 16.1% decline of the industry it belongs to.
Bridgewater Bancshares, Inc.’s (BWB - Free Report) board of directors has announced a new stock repurchase program. Under this plan, the company is authorized to repurchase up to $25 million worth of its common stock. The program will expire on Aug 16, 2024.
The new share repurchase program is part of BWB’s strategic decision to enhance shareholders’ value. It executes a stock repurchase program based on various factors like valuation, capital levels and other uses of capital.
Popular, Inc. (BPOP - Free Report) entered an accelerated share repurchase agreement (ASR) on Aug 24, 2022, to repurchase an aggregate of $231 million of the company’s common stock. The $231 million includes $100 million of repurchase authorization left under the company’s current buyback plan and the estimated $131 million in after-tax gains recognized by it from the sale of its remaining shares of common stock of EVERTEC, Inc.
Per the ASR Agreement, BPOP is expected to have made an initial payment of $231 million to receive an initial delivery of 2,339,241 shares of its common stock. This would be accounted as a treasury stock transaction.
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Eastern Bankshares (EBC) Stock Up on New Share Buyback Plan
Shares of Eastern Bankshares, Inc. (EBC - Free Report) have rallied 3.6% since the announcement of a new share repurchase program earlier this week. Under the plan, for which it has received “regulatory non-objection”, the company is authorized to buy back up to 8.9 million shares or 5% of EBC’s of common shares outstanding.
Further, EBC noted that the repurchase program, which will expire on Aug 31, 2023, is limited to $200 million worth of shares. Notably, the company’s board of directors can modify or terminate the plan at any time.
Eastern Bankshares will begin buying back shares under this plan later this month subsequent to the completion of its prior share repurchase program. The older plan, which was announced last November, had the authorization to buy back up to nearly 9.3 million shares for up to $225 million over a 12-month period. As of Sep 6, 2022, EBC had repurchased 9.1 million shares for $182 million.
Alongside share repurchases, Eastern Bankshares pays a regular quarterly dividend of 10 cents per share. The last dividend hike was announced this January when it was increased by 25%. It must be noted that the company started paying out dividends effective March 2021.
Based on the last day’s closing price of $19.89, EBC’s dividend currently yields 2.01%, and its payout ratio is 36% of earnings.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Eastern Bankshares will keep enhancing shareholder value.
Over the past six months, shares of EBC have lost 7.5% compared with a 16.1% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Share Buyback Plans of Other Banks
Bridgewater Bancshares, Inc.’s (BWB - Free Report) board of directors has announced a new stock repurchase program. Under this plan, the company is authorized to repurchase up to $25 million worth of its common stock. The program will expire on Aug 16, 2024.
The new share repurchase program is part of BWB’s strategic decision to enhance shareholders’ value. It executes a stock repurchase program based on various factors like valuation, capital levels and other uses of capital.
Popular, Inc. (BPOP - Free Report) entered an accelerated share repurchase agreement (ASR) on Aug 24, 2022, to repurchase an aggregate of $231 million of the company’s common stock. The $231 million includes $100 million of repurchase authorization left under the company’s current buyback plan and the estimated $131 million in after-tax gains recognized by it from the sale of its remaining shares of common stock of EVERTEC, Inc.
Per the ASR Agreement, BPOP is expected to have made an initial payment of $231 million to receive an initial delivery of 2,339,241 shares of its common stock. This would be accounted as a treasury stock transaction.