Webster Financial Corporation (NYSE:WBS) Receives $67.00 Average PT from Analysts

Key Points

• Webster Financial Corporation has received a consensus recommendation of "Moderate Buy" from fourteen ratings firms, with an average target price of $67.00.
• The company's quarterly earnings report showed an EPS of $1.52, surpassing estimates and achieving a revenue increase of 16.5% compared to the same quarter last year.
• Webster Financial recently announced a quarterly dividend of $0.40 per share, representing a 2.6% yield, with a payout ratio of 32.45%.

Webster Financial Corporation (NYSE:WBS - Get Free Report) has received a consensus rating of "Moderate Buy" from the fourteen research firms that are presently covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The average 1 year target price among analysts that have covered the stock in the last year is $67.00.

A number of brokerages have weighed in on WBS. Cantor Fitzgerald assumed coverage on shares of Webster Financial in a report on Wednesday, September 10th. They issued an "overweight" rating and a $70.00 price target for the company. UBS Group restated a "buy" rating and issued a $69.00 price objective on shares of Webster Financial in a research report on Wednesday, July 9th. Seaport Res Ptn lowered shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. JPMorgan Chase & Co. lifted their price objective on shares of Webster Financial from $55.00 to $65.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 1st. Finally, Raymond James Financial lifted their price target on shares of Webster Financial from $65.00 to $68.00 and gave the company an "outperform" rating in a research note on Friday, July 18th.

Insider Buying and Selling at Webster Financial

In other Webster Financial news, Director William L. Atwell sold 16,823 shares of the stock in a transaction on Monday, July 28th. The shares were sold at an average price of $59.20, for a total value of $995,921.60. Following the completion of the sale, the director owned 30,915 shares in the company, valued at $1,830,168. This trade represents a 35.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of Webster Financial stock in a transaction dated Tuesday, July 22nd. The shares were 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 approximately $950,184.05. This trade represents a 17.10% decrease in their position. The disclosure for this sale can be found here. Insiders sold 36,445 shares of company stock valued at $2,168,537 in the last 90 days. Company insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On Webster Financial

Institutional investors and hedge funds have recently modified their holdings of the stock. Picton Mahoney Asset Management acquired a new position in shares of Webster Financial in the first quarter valued at $25,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Webster Financial by 327.2% in the first 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 raised its holdings in Webster Financial by 118.4% in the 1st quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock valued at $43,000 after buying an additional 451 shares during the last quarter. IFP Advisors Inc raised its holdings in Webster Financial by 3,628.6% in the 2nd quarter. IFP Advisors Inc now owns 783 shares of the financial services provider's stock valued at $43,000 after buying an additional 762 shares during the last quarter. Finally, Allworth Financial LP raised its holdings in Webster Financial by 43.7% during the 1st quarter. Allworth Financial LP now owns 941 shares of the financial services provider's stock worth $45,000 after purchasing an additional 286 shares during the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Webster Financial Stock Up 0.4%

Shares of WBS traded up $0.23 during mid-day trading on Friday, hitting $60.92. 228,319 shares of the company's stock were exchanged, compared to its average volume of 1,310,428. The firm has a fifty day moving average of $59.76 and a two-hundred day moving average of $53.96. Webster Financial has a twelve month low of $39.43 and a twelve month high of $63.99. The stock has a market cap of $10.12 billion, a price-to-earnings ratio of 12.34, a P/E/G ratio of 0.56 and a beta of 1.07. The company has a quick ratio of 0.85, a current ratio of 0.86 and a debt-to-equity ratio of 0.47.

Webster Financial (NYSE:WBS - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The financial services provider reported $1.52 EPS for the quarter, topping the consensus estimate of $1.43 by $0.09. The company 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%. Webster Financial's quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.26 EPS. On average, sell-side analysts forecast that Webster Financial will post 5.88 earnings per share for the current year.

Webster Financial Dividend Announcement

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

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.