Jefferies Financial Group Initiates Coverage on Webster Financial (NYSE:WBS)

Research analysts at Jefferies Financial Group started coverage on shares of Webster Financial (NYSE:WBS - Get Free Report) in a note issued to investors on Wednesday,Benzinga reports. The firm set a "buy" rating and a $65.00 price target on the financial services provider's stock. Jefferies Financial Group's target price indicates a potential upside of 23.50% from the company's previous close.

Other equities analysts have also issued reports about the stock. Raymond James decreased their price objective on shares of Webster Financial from $65.00 to $58.00 and set an "outperform" rating for the company in a report on Wednesday, April 2nd. Keefe, Bruyette & Woods decreased their price target on Webster Financial from $70.00 to $65.00 and set an "outperform" rating for the company in a research note on Friday, April 25th. Barclays lowered their price target on Webster Financial from $80.00 to $72.00 and set an "overweight" rating on the stock in a report on Tuesday, April 8th. Wells Fargo & Company decreased their target price on Webster Financial from $75.00 to $60.00 and set an "overweight" rating for the company in a research report on Wednesday, April 9th. Finally, Morgan Stanley dropped their price target on shares of Webster Financial from $75.00 to $66.00 and set an "equal weight" rating on the stock in a report on Thursday, March 13th. Three equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Webster Financial presently has an average rating of "Moderate Buy" and a consensus target price of $63.75.

Webster Financial Price Performance

WBS opened at $52.63 on Wednesday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $8.85 billion, a PE ratio of 12.04, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. The stock's 50 day moving average price is $48.47 and its 200-day moving average price is $54.35. Webster Financial has a 52-week low of $39.34 and a 52-week high of $63.99.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings data on Thursday, April 24th. The financial services provider reported $1.30 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.08). The company had revenue of $704.80 million during the quarter, compared to analysts' expectations of $708.46 million. Webster Financial had a return on equity of 10.82% and a net margin of 18.39%. The business's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the business earned $1.35 earnings per share. On average, equities research analysts predict that Webster Financial will post 5.88 EPS for the current year.

Webster Financial declared that its Board of Directors has authorized a share buyback plan on Thursday, May 1st that permits the company to buyback $700.00 million in shares. This buyback authorization permits the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, insider Daniel Bley sold 1,800 shares of the company's stock in a transaction that occurred on Tuesday, April 29th. The stock was sold at an average price of $47.84, for a total transaction of $86,112.00. Following the sale, the insider now directly owns 21,517 shares of the company's stock, valued at $1,029,373.28. This represents a 7.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO John R. Ciulla sold 8,000 shares of the firm's stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $57.43, for a total transaction of $459,440.00. Following the completion of the transaction, the chief executive officer now directly owns 210,051 shares of the company's stock, valued at approximately $12,063,228.93. This trade represents a 3.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 11,000 shares of company stock worth $605,516 over the last 90 days. Corporate insiders own 0.54% of the company's stock.

Institutional Investors Weigh In On Webster Financial

Hedge funds have recently bought and sold shares of the business. FMR LLC increased its holdings in shares of Webster Financial by 1.2% in the 4th quarter. FMR LLC now owns 8,493,426 shares of the financial services provider's stock worth $469,007,000 after buying an additional 99,908 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Webster Financial by 7.4% during the first quarter. Dimensional Fund Advisors LP now owns 7,108,082 shares of the financial services provider's stock valued at $366,408,000 after purchasing an additional 487,264 shares during the period. Invesco Ltd. lifted its stake in shares of Webster Financial by 3.1% in the 1st quarter. Invesco Ltd. now owns 5,049,297 shares of the financial services provider's stock valued at $260,291,000 after purchasing an additional 153,236 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Webster Financial by 0.9% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,597,943 shares of the financial services provider's stock valued at $237,025,000 after purchasing an additional 42,406 shares during the last quarter. Finally, Capital International Investors increased its position in shares of Webster Financial by 0.9% during the 4th quarter. Capital International Investors now owns 4,130,379 shares of the financial services provider's stock valued at $228,000,000 after purchasing an additional 35,039 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Webster Financial Company Profile

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking.

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