Webster Financial Corporation (NYSE:WBS) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts give Webster a consensus "Hold" rating from 16 firms (1 sell, 11 hold, 4 buy) with an average 12‑month price target of about $74.07.
• Webster beat Q4 expectations with EPS of $1.59 versus $1.52 and revenue of $760.5M versus $732.0M, and analysts expect full‑year EPS of about 5.88; the bank reported a return on equity of 11.1% and a net margin of 22.7%.
• The company pays a quarterly dividend of $0.40 (annualized $1.60) for a 2.2% yield

Shares of Webster Financial Corporation (NYSE:WBS - Get Free Report) have earned a consensus recommendation of "Hold" from the sixteen research firms that are currently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and four have issued a buy rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $74.0714.

Several equities research analysts have issued reports on WBS shares. UBS Group started coverage on Webster Financial in a research note on Tuesday. They set a "neutral" rating and a $69.00 price target for the company. Raymond James Financial lowered Webster Financial from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, February 11th. Wells Fargo & Company raised Webster Financial from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. Morgan Stanley lowered their target price on Webster Financial from $77.00 to $75.00 and set an "equal weight" rating for the company in a research note on Thursday, February 5th. Finally, Barclays set a $75.00 target price on Webster Financial in a research note on Wednesday, February 4th.

Institutional Investors Weigh In On Webster Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. BOKF NA bought a new stake in shares of Webster Financial in the 3rd quarter valued at about $26,000. Flagship Harbor Advisors LLC bought a new stake in shares of Webster Financial in the 4th quarter valued at about $28,000. Root Financial Partners LLC bought a new stake in shares of Webster Financial in the 3rd quarter valued at about $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Webster Financial in the 3rd quarter valued at about $29,000. Finally, Atlas Capital Advisors Inc. bought a new stake in shares of Webster Financial in the 4th quarter valued at about $31,000. Institutional investors own 85.58% of the company's stock.

Webster Financial Trading Up 2.7%

Shares of WBS stock opened at $71.68 on Thursday. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.40. The business has a 50-day moving average price of $70.16 and a two-hundred day moving average price of $63.92. Webster Financial has a 12-month low of $39.96 and a 12-month high of $74.00. The firm has a market cap of $11.56 billion, a P/E ratio of 12.13 and a beta of 1.03.

Webster Financial (NYSE:WBS - Get Free Report) last issued its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.07. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The firm had revenue of $760.48 million during the quarter, compared to analyst estimates of $731.95 million. During the same quarter in the previous year, the company posted $1.43 earnings per share. Equities analysts anticipate that Webster Financial will post 5.88 EPS for the current fiscal year.

Webster Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Monday, February 9th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Monday, February 9th. Webster Financial's payout ratio is 27.07%.

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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