Webster Financial (NYSE:WBS) Issues Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Webster Financial reported a quarterly earnings per share (EPS) of $1.54, surpassing the consensus estimate of $1.52 by $0.02.
• The company's stock decreased by 7.0% following the earnings report, with shares trading at $54.10.
• Webster Financial declared a quarterly dividend of $0.40 per share, yielding 3.0% annually and having a payout ratio of 32.45%.

Webster Financial (NYSE:WBS - Get Free Report) issued its quarterly earnings results on Friday. The financial services provider reported $1.54 EPS for the quarter, beating the consensus estimate of $1.52 by $0.02, RTT News reports. Webster Financial had a net margin of 20.06% and a return on equity of 10.84%. During the same period in the prior year, the firm posted $1.34 earnings per share.

Webster Financial Stock Down 7.0%

Webster Financial stock opened at $54.10 on Friday. The company has a market capitalization of $8.99 billion, a P/E ratio of 10.97, a P/E/G ratio of 0.52 and a beta of 1.05. The firm's fifty day simple moving average is $59.85 and its 200-day simple moving average is $54.91. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.47. Webster Financial has a 1-year low of $39.43 and a 1-year high of $63.99.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Monday, August 11th were issued a dividend of $0.40 per share. The ex-dividend date was Monday, August 11th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.0%. Webster Financial's dividend payout ratio (DPR) is currently 32.45%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on WBS shares. Cantor Fitzgerald started coverage on shares of Webster Financial in a research report on Wednesday, September 10th. They issued an "overweight" rating and a $70.00 price target for the company. Seaport Res Ptn downgraded shares of Webster Financial from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. JPMorgan Chase & Co. reduced their price target on shares of Webster Financial from $70.00 to $68.00 and set an "overweight" rating for the company in a research report on Wednesday, October 1st. Raymond James Financial increased their target price on shares of Webster Financial from $65.00 to $68.00 and gave the stock an "outperform" rating in a research report on Friday, July 18th. Finally, Barclays reiterated an "overweight" rating and issued a $78.00 target price on shares of Webster Financial in a research report on Wednesday, October 8th. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Webster Financial has a consensus rating of "Moderate Buy" and a consensus target price of $69.50.

Insider Buying and Selling at Webster Financial

In other news, insider James Mi Griffin sold 2,065 shares of the firm's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $60.56, for a total transaction of $125,056.40. Following the transaction, the insider owned 13,363 shares in the company, valued at approximately $809,263.28. This trade represents a 13.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Albert Jen-Wen Wang sold 3,250 shares of the firm's stock in a transaction on 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 owned 15,755 shares in the company, valued at $950,184.05. The trade was a 17.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 36,445 shares of company stock worth $2,168,537 in the last ninety days. Company insiders own 0.54% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of WBS. Geneos Wealth Management Inc. grew its stake in Webster Financial by 81.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,107 shares of the financial services provider's stock valued at $57,000 after buying an additional 497 shares during the last quarter. State of Wyoming acquired a new position in Webster Financial in the 2nd quarter valued at $93,000. Cubist Systematic Strategies LLC acquired a new position in Webster Financial in the 1st quarter valued at $114,000. EverSource Wealth Advisors LLC grew its stake in Webster Financial by 205.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,398 shares of the financial services provider's stock valued at $186,000 after buying an additional 2,284 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in Webster Financial in the 2nd quarter valued at $254,000. 85.58% of the stock is currently owned by institutional investors and hedge funds.

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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