Webster Financial (NYSE:WBS) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Webster Financial reported quarterly EPS of $1.60, missing analysts’ consensus by $0.01.
• The stock rose 1.1% to $76.18 after the earnings release, while the company posted a 22.95% net margin and 11.31% return on equity.
• Webster Financial also paid a quarterly dividend of $0.40 per share, equal to a 2.1% annualized yield.

Webster Financial (NYSE:WBS - Get Free Report) announced its quarterly earnings data on Tuesday. The financial services provider reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.01), FiscalAI reports. Webster Financial had a net margin of 22.95% and a return on equity of 11.31%.

Webster Financial Stock Up 1.1%

WBS traded up $0.83 on Tuesday, reaching $76.18. The company's stock had a trading volume of 2,801,247 shares, compared to its average volume of 3,778,006. The stock has a 50 day moving average of $74.25 and a two-hundred day moving average of $71.06. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.60. The company has a market capitalization of $12.34 billion, a price-to-earnings ratio of 12.47 and a beta of 1.00. Webster Financial has a fifty-two week low of $52.69 and a fifty-two week high of $77.69.

Webster Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Monday, May 11th were paid a dividend of $0.40 per share. The ex-dividend date was Monday, May 11th. This represents a $1.60 annualized dividend and a yield of 2.1%. Webster Financial's payout ratio is presently 26.19%.

Institutional Trading of Webster Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WBS. BOKF NA purchased a new position in shares of Webster Financial in the 3rd quarter valued at $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in Webster Financial in the third quarter valued at $29,000. Atlas Capital Advisors Inc. purchased a new stake in Webster Financial in the fourth quarter valued at $31,000. Wilmington Savings Fund Society FSB acquired a new position in Webster Financial in the third quarter valued at $33,000. Finally, Brown Brothers Harriman & Co. boosted its stake in Webster Financial by 27.9% in the third quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider's stock valued at $50,000 after acquiring an additional 183 shares in the last quarter. Institutional investors and hedge funds own 85.58% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on WBS shares. Keefe, Bruyette & Woods reduced their target price on shares of Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a report on Friday, May 1st. Weiss Ratings reissued a "buy (b)" rating on shares of Webster Financial in a research report on Friday, June 12th. Finally, UBS Group initiated coverage on shares of Webster Financial in a report on Tuesday, April 7th. They issued a "neutral" rating and a $69.00 price objective on the stock. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $73.96.

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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