Weiss Ratings Downgrades Webster Financial (NYSE:WBS) to Hold (C+)

Key Points

• Weiss Ratings has downgraded Webster Financial from a "buy" rating to a "hold" rating in a report issued on Friday, reflecting a shift in analysts' outlook on the company's stock.
• Webster Financial saw a slight increase in stock price, trading at $56.40, with a current market capitalization of $9.37 billion, despite a recent downgrade.
• The company reported better-than-expected earnings of $1.54 per share for the quarter, exceeding the consensus estimate of $1.52, alongside a return on equity of 11.07%.

Webster Financial (NYSE:WBS - Get Free Report) was downgraded by Weiss Ratings from a "buy (b-)" rating to a "hold (c+)" rating in a research report issued on Friday,Weiss Ratings reports.

Other research analysts also recently issued reports about the stock. TD Cowen assumed coverage on shares of Webster Financial in a research note on Thursday, September 25th. They set a "buy" rating and a $78.00 price objective on the stock. Cantor Fitzgerald began coverage on shares of Webster Financial in a research note on Wednesday, September 10th. They issued an "overweight" rating and a $70.00 target price on the stock. Seaport Res Ptn downgraded Webster Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. JPMorgan Chase & Co. lowered their price objective on Webster Financial from $70.00 to $68.00 and set an "overweight" rating for the company in a report on Wednesday, October 1st. Finally, Barclays reaffirmed an "overweight" rating and set a $78.00 target price on shares of Webster Financial in a report on Wednesday, October 8th. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $69.69.

Webster Financial Stock Up 1.1%

Shares of NYSE WBS traded up $0.59 during midday trading on Friday, reaching $56.40. 445,257 shares of the company's stock were exchanged, compared to its average volume of 1,341,079. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.85 and a current ratio of 0.85. Webster Financial has a 52-week low of $39.43 and a 52-week high of $63.99. The business's fifty day moving average price is $59.69 and its two-hundred day moving average price is $55.23. The stock has a market capitalization of $9.37 billion, a PE ratio of 10.51, a price-to-earnings-growth ratio of 0.50 and a beta of 1.05.

Webster Financial (NYSE:WBS - Get Free Report) last posted its quarterly earnings data on Friday, October 17th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.02. Webster Financial had a return on equity of 11.07% and a net margin of 21.32%.The company had revenue of $732.60 million for the quarter, compared to the consensus estimate of $725.22 million. During the same period in the previous year, the business earned $1.34 EPS. Analysts forecast that Webster Financial will post 5.88 EPS for the current year.

Insider Activity

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the company's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $57.95, for a total value of $463,600.00. Following the completion of the transaction, the chief executive officer owned 239,872 shares in the company, valued at approximately $13,900,582.40. This represents a 3.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Elzbieta Cieslik sold 2,000 shares of Webster Financial stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $61.58, for a total value of $123,160.00. Following the sale, the chief accounting officer directly owned 14,894 shares in the company, valued at approximately $917,172.52. This trade represents a 11.84% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 28,630 shares of company stock valued at $1,694,449. 0.54% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of WBS. Picton Mahoney Asset Management acquired a new stake in Webster Financial in the first quarter worth about $25,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Webster Financial by 327.2% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider's stock worth $38,000 after buying an additional 566 shares in the last quarter. IFP Advisors Inc raised its position in shares of Webster Financial by 3,628.6% during the 2nd quarter. IFP Advisors Inc now owns 783 shares of the financial services provider's stock worth $43,000 after buying an additional 762 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of Webster Financial by 56.1% in the second quarter. Parkside Financial Bank & Trust now owns 829 shares of the financial services provider's stock valued at $45,000 after acquiring an additional 298 shares in the last quarter. Finally, TCTC Holdings LLC increased its stake in shares of Webster Financial by 118.4% during the first quarter. TCTC Holdings LLC now owns 832 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 451 shares during the period. 85.58% of the stock is owned by institutional investors and hedge funds.

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.

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