Webster Financial Corporation (NYSE:WBS) Given Average Rating of "Hold" by Analysts

Key Points

• Analyst consensus: 16 analysts rate Webster Financial an overall “Hold” (1 sell, 11 hold, 4 buy) with an average 12‑month target of about $73.96.
• Heavy institutional ownership: Institutions and hedge funds own ~85.58% of the stock, with recent large stakes or increases from Norges Bank, Alyeska, Assenagon and AQR.
• Operational update: Webster beat quarterly estimates (EPS $1.57 vs $1.53, revenue $764.05M vs $735.26M) and declared a quarterly dividend of $0.40 (annual $1.60, ~2.2% yield).

Shares of Webster Financial Corporation (NYSE:WBS - Get Free Report) have earned an average rating of "Hold" from the sixteen analysts that are covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and four have given a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $73.9643.

Several analysts recently weighed in on WBS shares. UBS Group started coverage on Webster Financial in a research note on Tuesday, April 7th. They issued a "neutral" rating and a $69.00 price objective on the stock. TD Cowen lowered Webster Financial from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 4th. Citigroup lowered Webster Financial from a "buy" rating to a "hold" rating and set a $75.00 price objective on the stock. in a research note on Friday, February 13th. Wells Fargo & Company raised Webster Financial from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. Finally, Royal Bank Of Canada lowered Webster Financial from a "moderate buy" rating to a "hold" rating and set a $75.00 price objective on the stock. in a research note on Wednesday, February 4th.

Institutional Trading of Webster Financial

A number of hedge funds have recently made changes to their positions in WBS. Norges Bank acquired a new stake in shares of Webster Financial during the fourth quarter valued at about $142,035,000. Alyeska Investment Group L.P. boosted its stake in shares of Webster Financial by 7,442.8% during the third quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider's stock valued at $120,838,000 after purchasing an additional 2,005,985 shares in the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Webster Financial during the first quarter valued at about $109,754,000. 140 Summer Partners LP acquired a new stake in shares of Webster Financial during the third quarter valued at about $75,465,000. Finally, AQR Capital Management LLC boosted its stake in shares of Webster Financial by 221.0% during the second quarter. AQR Capital Management LLC now owns 1,565,623 shares of the financial services provider's stock valued at $85,483,000 after purchasing an additional 1,077,819 shares in the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Webster Financial Stock Performance

NYSE:WBS opened at $72.23 on Monday. The stock's 50-day simple moving average is $70.54 and its 200 day simple moving average is $65.40. The firm has a market capitalization of $11.70 billion, a PE ratio of 11.82 and a beta of 1.02. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.60. Webster Financial has a twelve month low of $48.37 and a twelve month high of $74.00.

Webster Financial (NYSE:WBS - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The financial services provider reported $1.57 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.04. The business had revenue of $764.05 million for the quarter, compared to analyst estimates of $735.26 million. Webster Financial had a return on equity of 11.31% and a net margin of 22.95%.Webster Financial's revenue was up 4.4% compared to the same quarter last year. During the same period last year, the firm posted $1.30 earnings per share. On average, analysts anticipate that Webster Financial will post 6.59 EPS for the current fiscal year.

Webster Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Monday, May 11th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, May 11th. Webster Financial's dividend payout ratio (DPR) is presently 26.19%.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.

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