Webster Financial Co. (NYSE:WBS) Receives Consensus Rating of “Moderate Buy” from Brokerages

Webster Financial Co. (NYSE:WBS) has been assigned a consensus rating of “Moderate Buy” from the eleven research firms that are presently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, eight have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $62.58.

WBS has been the subject of a number of recent research reports. Keefe, Bruyette & Woods lowered their target price on Webster Financial from $70.00 to $65.00 and set an “outperform” rating for the company in a report on Friday, April 25th. Morgan Stanley lowered their target price on Webster Financial from $75.00 to $66.00 and set an “equal weight” rating for the company in a report on Thursday, March 13th. Raymond James lowered their target price on Webster Financial from $65.00 to $58.00 and set an “outperform” rating for the company in a report on Wednesday, April 2nd. Barclays lowered their target price on Webster Financial from $80.00 to $72.00 and set an “overweight” rating for the company in a report on Tuesday, April 8th. Finally, Wells Fargo & Company lowered their target price on Webster Financial from $75.00 to $60.00 and set an “overweight” rating for the company in a report on Wednesday, April 9th.

Webster Financial Price Performance

Webster Financial stock opened at $52.92 on Monday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 0.84. Webster Financial has a 52 week low of $39.34 and a 52 week high of $63.99. The stock has a market capitalization of $8.90 billion, a P/E ratio of 12.11, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. The stock has a fifty day moving average of $48.33 and a 200-day moving average of $54.35.

Webster Financial (NYSE:WBS) last posted its quarterly earnings results on Thursday, April 24th. The financial services provider reported $1.30 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.08). Webster Financial had a return on equity of 10.82% and a net margin of 18.39%. The business had revenue of $704.80 million for the quarter, compared to analyst estimates of $708.46 million. During the same period last year, the firm posted $1.35 EPS. Webster Financial’s quarterly revenue was up 5.7% on a year-over-year basis. On average, sell-side analysts expect that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Webster Financial announced that its board has approved a share repurchase plan on Thursday, May 1st that authorizes the company to repurchase $700.00 million in outstanding shares. This repurchase authorization authorizes the financial services provider to buy up to 8.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Webster Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 22nd. Shareholders of record on Monday, May 12th will be given a $0.40 dividend. The ex-dividend date is Monday, May 12th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.02%. Webster Financial’s dividend payout ratio (DPR) is presently 36.04%.

Insider Buying and Selling at Webster Financial

In related news, Director Laurence C. Morse sold 13,217 shares of the company’s stock in a transaction dated Wednesday, February 19th. The stock was sold at an average price of $59.07, for a total transaction of $780,728.19. Following the sale, the director now owns 18,808 shares in the company, valued at $1,110,988.56. This represents a 41.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel Bley sold 1,200 shares of the company’s stock in a transaction dated Monday, May 5th. The shares were sold at an average price of $49.97, for a total value of $59,964.00. Following the sale, the insider now owns 20,317 shares in the company, valued at approximately $1,015,240.49. The trade was a 5.58% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 24,217 shares of company stock worth $1,386,244. Insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On Webster Financial

Institutional investors and hedge funds have recently made changes to their positions in the business. Skandinaviska Enskilda Banken AB publ bought a new stake in shares of Webster Financial during the 4th quarter valued at about $26,000. Picton Mahoney Asset Management bought a new position in Webster Financial in the first quarter worth approximately $25,000. Headlands Technologies LLC bought a new position in Webster Financial in the fourth quarter worth approximately $32,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Webster Financial by 327.2% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 739 shares of the financial services provider’s stock worth $38,000 after acquiring an additional 566 shares in the last quarter. Finally, R Squared Ltd bought a new position in Webster Financial in the fourth quarter worth approximately $43,000. Institutional investors own 85.58% of the company’s stock.

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.