Webster Financial Corporation (NYSE:WBS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Webster Financial Corporation has received a consensus rating of "Moderate Buy" from thirteen brokerages, with ten analysts recommending a buy and three suggesting a hold.
• The company recently raised its financial outlook, with analysts increasing their price targets, including Citigroup's upgrade to $71.00.
• Webster Financial has implemented a $700 million share buyback program, indicating confidence in its stock valuation and strong financial performance.

Shares of Webster Financial Corporation (NYSE:WBS - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the thirteen brokerages that are currently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $66.7692.

A number of brokerages recently commented on WBS. Raymond James Financial raised their target price on Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a report on Friday, July 18th. UBS Group reissued a "buy" rating and set a $69.00 price target on shares of Webster Financial in a report on Wednesday, July 9th. Citigroup raised their price target on Webster Financial from $65.00 to $71.00 and gave the company a "buy" rating in a report on Friday, July 18th. Seaport Res Ptn cut Webster Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Finally, Jefferies Financial Group started coverage on Webster Financial in a report on Wednesday, May 21st. They set a "buy" rating and a $65.00 price target on the stock.

Insider Activity

In other news, CAO Albert Jen-Wen Wang sold 3,250 shares of Webster Financial stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $60.31, for a total value of $196,007.50. Following the sale, the chief accounting officer directly owned 15,755 shares of the company's stock, valued at approximately $950,184.05. The trade was a 17.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO John R. Ciulla sold 8,000 shares of Webster Financial stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $57.95, for a total value of $463,600.00. Following the completion of the sale, the chief executive officer directly owned 239,872 shares in the company, valued at $13,900,582.40. This trade represents a 3.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 37,638 shares of company stock valued at $2,199,861 in the last quarter. Company insiders own 0.54% of the company's stock.

Institutional Trading of Webster Financial

Large investors have recently added to or reduced their stakes in the company. Picton Mahoney Asset Management bought a new stake in Webster Financial in the 1st quarter worth approximately $25,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in 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 increased its stake in 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. IFP Advisors Inc increased its stake in Webster Financial by 3,628.6% during the second 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. Finally, Allworth Financial LP increased its stake in Webster Financial by 43.7% during the first quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after acquiring an additional 286 shares during the last quarter. Institutional investors own 85.58% of the company's stock.

Webster Financial Price Performance

Shares of Webster Financial stock opened at $62.02 on Wednesday. Webster Financial has a one year low of $39.43 and a one year high of $63.99. The stock's fifty day moving average is $57.64 and its 200 day moving average is $53.28. The stock has a market cap of $10.31 billion, a P/E ratio of 12.58, a P/E/G ratio of 0.56 and a beta of 1.04. 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 announced its earnings results on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, topping analysts' consensus estimates of $1.43 by $0.09. Webster Financial had a return on equity of 10.84% and a net margin of 20.06%.The company had revenue of $715.80 million for the quarter, compared to analysts' expectations of $716.59 million. During the same period last year, the firm earned $1.26 EPS. Webster Financial's revenue for the quarter was up 16.5% compared to the same quarter last year. Sell-side analysts anticipate that Webster Financial will post 5.88 earnings per share for the current year.

Webster Financial declared that its Board of Directors has authorized a share buyback 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 buy up to 8.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Monday, August 11th were issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Monday, August 11th. This represents a $1.60 dividend on an annualized basis and a yield of 2.6%. Webster Financial's dividend payout ratio (DPR) is currently 32.45%.

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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