Webster Financial Corporation (NYSE:WBS) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Webster Financial Corporation has received a consensus rating of "Moderate Buy" from analysts, with ten out of thirteen recommending buying the stock and a 12-month price target averaging $66.77.
• Insider activity shows that executives sold significant amounts of stock recently, with total insider sales reaching 40,838 shares valued at over $2.3 million in the last quarter.
• The company announced a quarterly dividend of $0.40 per share, reflecting a dividend yield of 2.9%, and initiated a $700 million share repurchase plan indicating potential undervaluation of stock.

Shares of Webster Financial Corporation (NYSE:WBS - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the thirteen analysts that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $66.77.

A number of equities research analysts have weighed in on the stock. Seaport Res Ptn downgraded shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Citigroup raised their target price on shares of Webster Financial from $65.00 to $71.00 and gave the stock a "buy" rating in a report on Friday, July 18th. JPMorgan Chase & Co. upped their price target on Webster Financial from $55.00 to $65.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Jefferies Financial Group began coverage on Webster Financial in a research report on Wednesday, May 21st. They set a "buy" rating and a $65.00 price objective for the company. Finally, Royal Bank Of Canada set a $60.00 target price on Webster Financial and gave the stock an "outperform" rating in a report on Friday, April 25th.

Insider Buying and Selling at Webster Financial

In other news, insider Charles L. Wilkins sold 5,000 shares of the firm's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $53.25, for a total transaction of $266,250.00. Following the completion of the transaction, the insider directly owned 31,534 shares of the company's stock, valued at approximately $1,679,185.50. This trade represents a 13.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $60.31, for a total transaction of $196,007.50. Following the completion of the transaction, the chief accounting officer directly owned 15,755 shares of the company's stock, valued at $950,184.05. This trade represents a 17.10% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 40,838 shares of company stock valued at $2,318,109 in the last quarter. 0.54% of the stock is currently owned by corporate insiders.

Institutional Trading of Webster Financial

Large investors have recently added to or reduced their stakes in the company. FMR LLC raised its holdings in Webster Financial by 1.2% during the 4th quarter. FMR LLC now owns 8,493,426 shares of the financial services provider's stock worth $469,007,000 after purchasing an additional 99,908 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of 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 worth $366,408,000 after buying an additional 487,264 shares during the last quarter. Invesco Ltd. lifted its holdings in Webster Financial by 3.1% in the first quarter. Invesco Ltd. now owns 5,049,297 shares of the financial services provider's stock valued at $260,291,000 after buying an additional 153,236 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in Webster Financial by 0.9% in the first 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 acquiring an additional 42,406 shares during the last quarter. Finally, Capital International Investors grew its holdings in 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 worth $228,000,000 after acquiring an additional 35,039 shares during the period. 85.58% of the stock is owned by institutional investors.

Webster Financial Price Performance

Shares of WBS opened at $55.96 on Friday. The firm has a market capitalization of $9.41 billion, a price-to-earnings ratio of 11.35, a price-to-earnings-growth ratio of 0.54 and a beta of 1.04. The stock's fifty day moving average is $55.75 and its 200-day moving average is $53.52. Webster Financial has a one year low of $39.43 and a one year 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.

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

Webster Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Monday, August 11th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, August 11th. Webster Financial's dividend payout ratio (DPR) is presently 32.45%.

Webster Financial announced that its board has initiated a share repurchase plan on Thursday, May 1st that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 8.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

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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