Seaport Res Ptn Has Pessimistic Outlook of WBS Q4 Earnings

Webster Financial Co. (NYSE:WBS - Free Report) - Equities researchers at Seaport Res Ptn decreased their Q4 2025 earnings estimates for Webster Financial in a research report issued to clients and investors on Wednesday, April 30th. Seaport Res Ptn analyst L. Hunsicker now expects that the financial services provider will post earnings per share of $1.42 for the quarter, down from their previous estimate of $1.51. The consensus estimate for Webster Financial's current full-year earnings is $5.88 per share. Seaport Res Ptn also issued estimates for Webster Financial's Q1 2026 earnings at $1.43 EPS, Q2 2026 earnings at $1.52 EPS, Q3 2026 earnings at $1.57 EPS, Q4 2026 earnings at $1.64 EPS and FY2026 earnings at $6.17 EPS.

Webster Financial (NYSE:WBS - Get Free Report) last issued its earnings results 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). Webster Financial had a return on equity of 10.82% and a net margin of 18.39%. The firm had revenue of $704.80 million during the quarter, compared to analyst estimates of $708.46 million. During the same quarter in the previous year, the business posted $1.35 EPS. Webster Financial's revenue was up 5.7% compared to the same quarter last year.

Several other equities analysts have also commented on the stock. Barclays lowered their price target on shares of Webster Financial from $80.00 to $72.00 and set an "overweight" rating for the company in a research report on Tuesday, April 8th. JPMorgan Chase & Co. lowered their target price on Webster Financial from $67.00 to $65.00 and set an "overweight" rating on the stock in a research report on Tuesday, January 7th. Morgan Stanley reduced their price target on Webster Financial from $75.00 to $66.00 and set an "equal weight" rating for the company in a research report on Thursday, March 13th. Wells Fargo & Company lowered their price target on Webster Financial from $75.00 to $60.00 and set an "overweight" rating on the stock in a report on Wednesday, April 9th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Webster Financial from $70.00 to $65.00 and set an "outperform" rating for the company in a research report on Friday, April 25th. Three research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $62.73.

Webster Financial Stock Performance

Shares of NYSE WBS traded up $0.46 during midday trading on Friday, hitting $49.05. The company's stock had a trading volume of 296,693 shares, compared to its average volume of 1,247,053. 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 firm's fifty day moving average price is $48.37 and its 200-day moving average price is $54.34. Webster Financial has a 1-year low of $39.34 and a 1-year high of $63.99. The firm has a market cap of $8.25 billion, a P/E ratio of 11.22, a P/E/G ratio of 1.02 and a beta of 0.98.

Webster Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 22nd. Shareholders of record on Monday, May 12th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Monday, May 12th. This represents a $1.60 dividend on an annualized basis and a yield of 3.26%. Webster Financial's payout ratio is currently 36.04%.

Webster Financial declared that its board has authorized a stock repurchase program on Thursday, May 1st that authorizes the company to repurchase $700.00 million in shares. This repurchase authorization authorizes the financial services provider to buy up to 8.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Laurence C. Morse sold 13,217 shares of the stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $59.07, for a total transaction of $780,728.19. Following the completion of the sale, the director now owns 18,808 shares in the company, valued at $1,110,988.56. This trade represents a 41.27 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Daniel Bley sold 1,800 shares of the company's stock in a transaction dated 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 in the company, valued at $1,029,373.28. This represents a 7.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 24,217 shares of company stock valued at $1,386,244. Company insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On Webster Financial

Several institutional investors have recently bought and sold shares of WBS. Norges Bank bought a new position in shares of Webster Financial in the fourth quarter valued at about $120,497,000. Balyasny Asset Management L.P. increased its position in Webster Financial by 1,253.3% in the 4th quarter. Balyasny Asset Management L.P. now owns 1,120,914 shares of the financial services provider's stock valued at $61,897,000 after acquiring an additional 1,038,085 shares in the last quarter. Millennium Management LLC raised its stake in shares of Webster Financial by 43.0% in the fourth quarter. Millennium Management LLC now owns 2,547,225 shares of the financial services provider's stock worth $140,658,000 after acquiring an additional 766,019 shares during the last quarter. TimesSquare Capital Management LLC lifted its position in shares of Webster Financial by 759.8% during the fourth quarter. TimesSquare Capital Management LLC now owns 823,280 shares of the financial services provider's stock worth $45,462,000 after purchasing an additional 727,530 shares in the last quarter. Finally, FJ Capital Management LLC bought a new stake in shares of Webster Financial during the fourth quarter valued at approximately $29,177,000. Institutional investors own 85.58% of the company's stock.

About Webster Financial

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.