Webster Financial (NYSE:WBS) Hits New 12-Month High After Analyst Upgrade

Key Points

• Webster Financial shares reached a new 52-week high of $77.70 after Barclays raised its price target from $75 to $78, though it maintained an equal-weight rating.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, 11 a Hold and one a Sell, resulting in an overall “Hold” consensus and an average price target of $74.25.
• Webster Financial reported quarterly revenue of $769.23 million, above estimates, but EPS of $1.60 narrowly missed expectations. The company also declared a quarterly dividend of $0.40, representing a 2.1% yield.

Webster Financial Corporation (NYSE:WBS - Get Free Report)'s share price hit a new 52-week high during trading on Monday after Barclays raised their price target on the stock from $75.00 to $78.00. Barclays currently has an equal weight rating on the stock. Webster Financial traded as high as $77.70 and last traded at $77.70, with a volume of 5185 shares. The stock had previously closed at $77.22.

Several other research firms have also weighed in on WBS. Weiss Ratings reiterated a "buy (b)" rating on shares of Webster Financial in a research note on Friday, June 12th. Royal Bank Of Canada raised their target price on Webster Financial from $75.00 to $76.00 and gave the company a "sector perform" rating in a report on Wednesday, July 22nd. Keefe, Bruyette & Woods decreased their price target on Webster Financial from $79.00 to $77.50 and set an "outperform" rating for the company in a research note on Friday, May 1st. Finally, UBS Group initiated coverage on Webster Financial in a report on Tuesday, April 7th. They issued a "neutral" rating and a $69.00 target price for the company. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $74.25.

Institutional Investors Weigh In On Webster Financial

A number of institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its position in shares of Webster Financial by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 7,920,300 shares of the financial services provider's stock worth $498,509,000 after acquiring an additional 107,335 shares during the period. Invesco Ltd. boosted its stake in Webster Financial by 2.9% during the fourth quarter. Invesco Ltd. now owns 5,516,110 shares of the financial services provider's stock worth $347,184,000 after buying an additional 156,636 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Webster Financial by 15.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,246,364 shares of the financial services provider's stock valued at $330,207,000 after buying an additional 713,294 shares during the period. Capital International Investors increased its holdings in Webster Financial by 0.4% in the 4th quarter. Capital International Investors now owns 4,177,281 shares of the financial services provider's stock valued at $263,058,000 after buying an additional 16,676 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of Webster Financial by 67.6% in the 1st quarter. Bank of America Corp DE now owns 3,727,744 shares of the financial services provider's stock valued at $258,780,000 after buying an additional 1,504,075 shares in the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Webster Financial Stock Performance

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.87 and a current ratio of 0.87. The firm's 50-day moving average price is $75.07 and its two-hundred day moving average price is $71.84. The firm has a market capitalization of $12.59 billion, a price-to-earnings ratio of 12.63 and a beta of 1.00.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.01). Webster Financial had a return on equity of 11.23% and a net margin of 22.78%.The business had revenue of $769.23 million during the quarter, compared to analyst estimates of $755.80 million. During the same period last year, the company earned $1.52 EPS. The business's revenue for the quarter was up 3.4% on a year-over-year basis. Sell-side analysts predict that Webster Financial Corporation will post 6.55 earnings per share for the current year.

Webster Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Monday, August 10th will be paid a $0.40 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $1.60 annualized dividend and a yield of 2.1%. Webster Financial's payout ratio is currently 26.02%.

Webster Financial Company Profile

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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