Q4 EPS Estimate for Webster Financial Reduced by Analyst

Webster Financial Co. (NYSE:WBS) – Stock analysts at Seaport Res Ptn cut their Q4 2025 earnings per share estimates for shares of Webster Financial in a research report issued to clients and investors on Wednesday, April 30th. Seaport Res Ptn analyst L. Hunsicker now expects that the financial services provider will post earnings of $1.42 per share for the quarter, down from their previous estimate of $1.51. The consensus estimate for Webster Financial’s current full-year earnings is $5.88 per share. Seaport Res Ptn also issued estimates for Webster Financial’s Q1 2026 earnings at $1.43 EPS, Q2 2026 earnings at $1.52 EPS, Q3 2026 earnings at $1.57 EPS, Q4 2026 earnings at $1.64 EPS and FY2026 earnings at $6.17 EPS.

Other analysts have also issued research reports about the stock. Keefe, Bruyette & Woods lowered their price target on shares of Webster Financial from $70.00 to $65.00 and set an “outperform” rating for the company in a report on Friday, April 25th. Wells Fargo & Company dropped their target price on Webster Financial from $75.00 to $60.00 and set an “overweight” rating for the company in a research report on Wednesday, April 9th. Morgan Stanley decreased their price target on Webster Financial from $75.00 to $66.00 and set an “equal weight” rating on the stock in a report on Thursday, March 13th. Barclays reduced their target price on shares of Webster Financial from $80.00 to $72.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 8th. Finally, Raymond James dropped their price target on shares of Webster Financial from $65.00 to $58.00 and set an “outperform” rating for the company in a research note on Wednesday, April 2nd. Three research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat, Webster Financial currently has an average rating of “Moderate Buy” and a consensus target price of $62.73.

Webster Financial Trading Up 4.0 %

Shares of NYSE WBS opened at $49.71 on Friday. Webster Financial has a 1-year low of $39.34 and a 1-year high of $63.99. The company has a 50-day moving average of $48.64 and a two-hundred day moving average of $54.36. The company has a market cap of $8.37 billion, a PE ratio of 11.38, a P/E/G ratio of 1.02 and a beta of 1.05. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.34.

Webster Financial (NYSE:WBS) last released its quarterly earnings results on Thursday, April 24th. The financial services provider reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.08). The business had revenue of $704.80 million during the quarter, compared to the consensus estimate of $708.46 million. Webster Financial had a net margin of 18.39% and a return on equity of 10.82%. The business’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.35 earnings per share.

Institutional Investors Weigh In On Webster Financial

Several institutional investors have recently added to or reduced their stakes in the stock. FMR LLC raised its stake in shares of Webster Financial by 1.2% in the 4th quarter. FMR LLC now owns 8,493,426 shares of the financial services provider’s stock valued at $469,007,000 after purchasing an additional 99,908 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Webster Financial by 0.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 6,620,818 shares of the financial services provider’s stock worth $365,601,000 after buying an additional 45,310 shares in the last quarter. Capital International Investors raised its position in Webster Financial by 0.9% in the 4th quarter. Capital International Investors now owns 4,130,379 shares of the financial services provider’s stock valued at $228,000,000 after buying an additional 35,039 shares during the last quarter. Earnest Partners LLC lifted its stake in Webster Financial by 3.8% in the 4th quarter. Earnest Partners LLC now owns 3,154,160 shares of the financial services provider’s stock valued at $174,173,000 after acquiring an additional 116,508 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. boosted its position in Webster Financial by 4.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,948,701 shares of the financial services provider’s stock worth $162,828,000 after acquiring an additional 114,375 shares during the last quarter. 85.58% of the stock is owned by institutional investors.

Insider Transactions at Webster Financial

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of Webster Financial stock in a transaction that occurred on Thursday, February 20th. The shares were sold at an average price of $57.43, for a total value of $459,440.00. Following the transaction, the chief executive officer now owns 210,051 shares of the company’s stock, valued at approximately $12,063,228.93. The trade was a 3.67 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Laurence C. Morse sold 13,217 shares of the company’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $59.07, for a total transaction of $780,728.19. Following the completion of the transaction, the director now owns 18,808 shares of the company’s stock, valued at $1,110,988.56. This trade represents a 41.27 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 23,017 shares of company stock valued at $1,326,280 over the last three months. 0.54% of the stock is currently owned by corporate insiders.

Webster Financial announced that its Board of Directors has approved a share buyback program on Thursday, May 1st that allows the company to repurchase $700.00 million in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 8.7% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 22nd. Shareholders of record on Monday, May 12th will be issued a $0.40 dividend. The ex-dividend date is Monday, May 12th. This represents a $1.60 annualized dividend and a yield of 3.22%. Webster Financial’s dividend payout ratio (DPR) is presently 36.04%.

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.