Webster Financial Co. (NYSE:WBS) Receives Average Recommendation of "Moderate Buy" from Analysts

Shares of Webster Financial Co. (NYSE:WBS - Get Free Report) have received an average rating of "Moderate Buy" from the eleven ratings firms that are covering the firm, Marketbeat reports. Two 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. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $63.75.

A number of research firms have recently weighed in on WBS. Morgan Stanley lowered their price objective on Webster Financial from $75.00 to $66.00 and set an "equal weight" rating on the stock in a research report on Thursday, March 13th. Jefferies Financial Group initiated coverage on shares of Webster Financial in a report on Wednesday. They set a "buy" rating and a $65.00 price target on the stock. Wells Fargo & Company dropped their price target on shares of Webster Financial from $75.00 to $60.00 and set an "overweight" rating for the company in a research report on Wednesday, April 9th. Truist Financial started coverage on shares of Webster Financial in a research report on Tuesday, May 13th. They set a "buy" rating and a $61.00 price objective on the stock. Finally, Royal Bank of Canada set a $60.00 target price on shares of Webster Financial and gave the company an "outperform" rating in a research note on Friday, April 25th.

Webster Financial Stock Performance

Shares of WBS stock traded down $1.96 during mid-day trading on Monday, reaching $50.69. 2,306,279 shares of the company's stock traded hands, compared to its average volume of 1,262,251. 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 has a market capitalization of $8.53 billion, a PE ratio of 11.60, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. Webster Financial has a 12 month low of $39.34 and a 12 month high of $63.99. The firm has a 50 day moving average price of $48.47 and a two-hundred day moving average price of $54.35.

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

Webster Financial declared that its board has approved a stock repurchase plan 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 plans are generally a sign that the company's leadership believes its shares are undervalued.

Webster Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 22nd. Shareholders of record on Monday, May 12th will be issued a $0.40 dividend. 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 3.16%. Webster Financial's dividend payout ratio is currently 36.04%.

Insider Buying and Selling at Webster Financial

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, February 20th. The stock was 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 owns 210,051 shares in the company, valued at $12,063,228.93. This trade represents a 3.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, 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 value 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 trade represents a 7.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 11,000 shares of company stock valued at $605,516 in the last 90 days. Insiders own 0.54% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Hennion & Walsh Asset Management Inc. purchased a new stake in Webster Financial during the fourth quarter valued at $269,000. Park Avenue Securities LLC bought a new stake in shares of Webster Financial in the 4th quarter worth about $246,000. Proficio Capital Partners LLC purchased a new stake in shares of Webster Financial during the 4th quarter valued at about $3,549,000. Charles Schwab Investment Management Inc. raised its position in shares of Webster Financial by 2.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,507,655 shares of the financial services provider's stock valued at $83,253,000 after buying an additional 38,713 shares in the last quarter. Finally, Barclays PLC lifted its holdings in shares of Webster Financial by 36.4% in the 3rd quarter. Barclays PLC now owns 297,834 shares of the financial services provider's stock valued at $13,883,000 after acquiring an additional 79,556 shares during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

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.