Webster Financial (NYSE:WBS) Sees Unusually-High Trading Volume - Here's What Happened

Key Points

• Webster Financial shares saw unusually high trading volume, with about 5.86 million shares changing hands—42% above the prior session—while the stock traded near $77.71.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, 11 a Hold and one a Sell. The consensus rating is Hold, with an average price target of $74.25.
• The company narrowly missed quarterly EPS estimates ($1.60 versus $1.61) but exceeded revenue expectations with $769.23 million, while maintaining a quarterly dividend of $0.40 per share, equivalent to a 2.1% yield.

Shares of Webster Financial Corporation (NYSE:WBS - Get Free Report) saw unusually-strong trading volume on Wednesday . Approximately 5,861,539 shares were traded during trading, an increase of 42% from the previous session's volume of 4,129,326 shares.The stock last traded at $77.7050 and had previously closed at $77.97.

Analysts Set New Price Targets

Several research firms have recently issued reports on WBS. Weiss Ratings reiterated a "buy (b)" rating on shares of Webster Financial in a report on Friday, June 12th. Keefe, Bruyette & Woods lowered their price objective on shares of Webster Financial from $79.00 to $77.50 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Barclays upped their price target on shares of Webster Financial from $75.00 to $78.00 and gave the company an "equal weight" rating in a research report on Monday, August 3rd. Finally, Royal Bank Of Canada upped their target price on shares of Webster Financial from $75.00 to $76.00 and gave the company a "sector perform" rating in a report on Wednesday, July 22nd. Four analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $74.25.

Webster Financial Price Performance

The stock has a 50 day simple moving average of $76.54 and a 200-day simple moving average of $73.04. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.46. The firm has a market cap of $12.59 billion, a PE ratio of 12.64 and a beta of 1.01.

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 for the quarter, missing the consensus estimate of $1.61 by ($0.01). The business had revenue of $769.23 million during the quarter, compared to the consensus estimate of $755.80 million. Webster Financial had a return on equity of 11.23% and a net margin of 22.78%.The company's revenue for the quarter was up 3.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.52 earnings per share. Equities analysts anticipate that Webster Financial Corporation will post 6.59 earnings per share for the current fiscal year.

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders 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 dividend on an annualized basis and a yield of 2.1%. Webster Financial's payout ratio is presently 26.02%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. BOKF NA bought a new stake in Webster Financial during the third quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in Webster Financial during the 3rd quarter valued at $29,000. New England Capital Financial Advisors LLC lifted its position in Webster Financial by 246.8% in the first quarter. New England Capital Financial Advisors LLC now owns 437 shares of the financial services provider's stock worth $30,000 after buying an additional 311 shares during the last quarter. Atlas Capital Advisors Inc. bought a new stake in Webster Financial in the fourth quarter worth $31,000. Finally, Wilmington Savings Fund Society FSB purchased a new position in shares of Webster Financial during the 3rd quarter worth about $33,000. Institutional investors own 85.58% of the company's stock.

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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