Webster Financial (NYSE:WBS) Stock Rating Lowered by Seaport Res Ptn

Key Points

• Seaport Res Ptn has downgraded Webster Financial from a "strong-buy" to a "hold" rating in a recent research note.
• Webster Financial's stock has seen mixed ratings, with four analysts giving a hold rating while ten have rated it as a buy, leading to a consensus rating of "Moderate Buy" with an average price target of $66.77.
• The company announced a $700 million stock buyback plan, indicating confidence from leadership that the stock is undervalued.

Webster Financial (NYSE:WBS - Get Free Report) was downgraded by Seaport Res Ptn from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Friday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Barclays increased their price target on shares of Webster Financial from $72.00 to $77.00 and gave the company an "overweight" rating in a report on Tuesday, July 8th. Royal Bank Of Canada set a $60.00 price objective on shares of Webster Financial and gave the company an "outperform" rating in a report on Friday, April 25th. UBS Group restated a "buy" rating and issued a $69.00 target price on shares of Webster Financial in a research note on Wednesday, July 9th. Citigroup raised their target price on shares of Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Webster Financial from $55.00 to $65.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 1st. Four research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Webster Financial presently has a consensus rating of "Moderate Buy" and a consensus target price of $66.77.

Webster Financial Stock Performance

Shares of WBS stock traded down $0.39 during mid-day trading on Friday, reaching $59.57. 1,154,735 shares of the company's stock traded hands, compared to its average volume of 1,509,522. The firm has a 50 day moving average price of $55.25 and a two-hundred day moving average price of $53.43. Webster Financial has a 12 month low of $39.43 and a 12 month high of $63.99. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.85 and a current ratio of 0.86. The firm has a market capitalization of $10.02 billion, a PE ratio of 10.73, a price-to-earnings-growth ratio of 0.56 and a beta of 1.00.

Webster Financial (NYSE:WBS - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The financial services provider reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.09. The business had revenue of $715.80 million during the quarter, compared to analyst estimates of $716.59 million. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%. Webster Financial's revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.26 earnings per share. On average, research analysts forecast that Webster Financial will post 5.88 EPS for the current year.

Webster Financial announced that its board has approved a share repurchase program on Thursday, May 1st that authorizes the company to buyback $700.00 million in shares. This buyback authorization authorizes the financial services provider to reacquire up to 8.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Webster Financial

In related news, insider Jason A. Soto sold 2,500 shares of the company's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $61.21, for a total transaction of $153,025.00. Following the completion of the sale, the insider owned 18,889 shares of the company's stock, valued at approximately $1,156,195.69. This represents a 11.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Javier L. Evans sold 7,800 shares of the company's stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $52.58, for a total transaction of $410,124.00. Following the sale, the insider directly owned 19,820 shares of the company's stock, valued at approximately $1,042,135.60. This represents a 28.24% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 25,815 shares of company stock valued at $1,408,299. Corporate insiders own 0.54% of the company's stock.

Institutional Trading of Webster Financial

Several hedge funds have recently made changes to their positions in WBS. Picton Mahoney Asset Management acquired a new position in shares of Webster Financial in the 1st quarter worth approximately $25,000. Headlands Technologies LLC acquired a new position in shares of Webster Financial in the 4th quarter worth approximately $32,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Webster Financial by 327.2% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after acquiring an additional 566 shares during the last quarter. TCTC Holdings LLC lifted its holdings in shares of Webster Financial by 118.4% in the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock worth $43,000 after acquiring an additional 451 shares during the last quarter. Finally, IFP Advisors Inc lifted its holdings in shares of Webster Financial by 3,628.6% in the 2nd quarter. IFP Advisors Inc now owns 783 shares of the financial services provider's stock worth $43,000 after acquiring an additional 762 shares during the last quarter. Hedge funds and other 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.