Freedom Broker downgraded Eagle Financial Services (NASDAQ: EFSI) to Hold from Buy on Wednesday, citing a sharp miss in adjusted earnings for the second quarter of 2026.
The brokerage maintained its price target at $43.00 despite the downgrade. Adjusted earnings per share came in at $0.41, missing the $0.79 consensus estimate by 48.1% and declining 58% from the prior-year period. On a quarter-over-quarter basis, adjusted EPS fell 41%. GAAP earnings per share totaled $0.92, up 33% sequentially but down 6% year-over-year. The GAAP figure included a $3.5 million pre-tax one-time gain from the sale of Eagle Financial’s stake in Bearing Insurance Group.
Revenue for the quarter reached $25.56 million, exceeding the $21.3 million consensus estimate by 20.1%. The company’s loan portfolio expanded, and net interest margin improved to 3.86%, though profitability was pressured by higher provision expenses and net charge-offs.
Eagle Financial Services has raised its dividend for 23 consecutive years, with a current yield of 2.97%. Valuation metrics included a P/E ratio of 12.25 and a PEG ratio of 0.14. At the time of the report, the stock was trading at $41.50, down $0.30 or 0.72%.
