Webster Financial Corporation (NYSE:WBS) Given Average Rating of “Moderate Buy” by Analysts

Webster Financial Corporation (NYSE:WBS) has earned a consensus rating of “Moderate Buy” from the fourteen research firms that are covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation and thirteen have issued a buy recommendation on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $72.7692.

A number of brokerages have recently issued reports on WBS. Truist Financial reaffirmed a “buy” rating and set a $72.00 target price on shares of Webster Financial in a research report on Friday, January 9th. Wells Fargo & Company cut their price objective on Webster Financial from $75.00 to $70.00 and set an “overweight” rating on the stock in a report on Monday, October 20th. UBS Group reiterated a “buy” rating on shares of Webster Financial in a report on Tuesday, January 6th. JPMorgan Chase & Co. boosted their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, December 16th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $72.00 price target on shares of Webster Financial in a research report on Monday, January 12th.

Webster Financial Trading Down 3.2%

Shares of NYSE:WBS opened at $64.13 on Friday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.85 and a current ratio of 0.85. The stock has a market capitalization of $10.34 billion, a price-to-earnings ratio of 11.94, a PEG ratio of 0.55 and a beta of 1.05. Webster Financial has a 1-year low of $39.43 and a 1-year high of $67.43. The company has a 50 day moving average price of $62.60 and a 200 day moving average price of $60.15.

Webster Financial (NYSE:WBS) last posted its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.07. The company had revenue of $760.48 million for the quarter, compared to analysts’ expectations of $731.95 million. Webster Financial had a return on equity of 11.07% and a net margin of 21.32%.During the same quarter in the prior year, the company earned $1.43 earnings per share. On average, research analysts anticipate that Webster Financial will post 5.88 EPS for the current fiscal year.

Webster Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Stockholders of record on Monday, November 10th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, November 10th. Webster Financial’s dividend payout ratio (DPR) is 29.80%.

Key Headlines Impacting Webster Financial

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Q4 earnings beat — Adjusted EPS of $1.59 topped consensus and net income rose year-over-year; revenue of ~$760.5M also exceeded estimates, driven by loan growth. These beats are the primary fundamental drivers supporting the shares. Business Wire: Webster Reports Fourth Quarter 2025
• Positive Sentiment: Loan-led revenue growth highlighted by multiple outlets — analysts point to core loan expansion as a key revenue driver this quarter, supporting margin stability. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst bullish case: Seeking Alpha keeps WBS as a Buy with a $70 target, citing low‑cost, sticky deposit mix (notably the HSA franchise), resilient credit quality, and strong capital — factors that can sustain earnings and limit rate‑sensitivity vs. peers. Seeking Alpha: Low-Cost Deposit Growth Can Drive Further Upside
• Neutral Sentiment: Earnings call transcript and slides are available for deeper read — management commentary and slides will be useful to assess sustainability of loan growth, deposit trends, and one-time items included in results. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst estimate revisions were active ahead of the print — some shops updated forecasts pre-earnings, which can amplify intraday moves even when results beat. Benzinga: Analysts Revise Forecasts Ahead Of Earnings
• Negative Sentiment: CRE exposure is a noted risk — Seeking Alpha flags roughly $1.3B in rent‑regulated loans and other CRE concentrations; while reserves and capital are positioned well, this portfolio remains a potential headwind if localized stress emerges. Seeking Alpha: CRE Exposure Note
• Negative Sentiment: Market reaction: despite the beat, the stock is trading lower on the session with above-average volume — suggests profit-taking, where investors are parsing one-time items (gains on debt redemption, charitable items) and portfolio risks rather than the headline beat. MarketBeat: WBS Stock Page

Insider Buying and Selling at Webster Financial

In related news, CEO John R. Ciulla sold 8,000 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $55.45, for a total transaction of $443,600.00. Following the transaction, the chief executive officer directly owned 231,872 shares of the company’s stock, valued at approximately $12,857,302.40. The trade was a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On Webster Financial

Several institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP increased its stake in Webster Financial by 2.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 7,812,965 shares of the financial services provider’s stock valued at $464,402,000 after buying an additional 189,399 shares during the period. Invesco Ltd. grew its holdings in shares of Webster Financial by 1.2% during the 3rd quarter. Invesco Ltd. now owns 5,359,474 shares of the financial services provider’s stock valued at $318,567,000 after acquiring an additional 63,403 shares in the last quarter. Capital International Investors increased its stake in shares of Webster Financial by 2.2% in the third quarter. Capital International Investors now owns 4,160,605 shares of the financial services provider’s stock worth $247,340,000 after acquiring an additional 89,723 shares during the last quarter. American Century Companies Inc. raised its holdings in shares of Webster Financial by 14.5% during the second quarter. American Century Companies Inc. now owns 3,453,778 shares of the financial services provider’s stock worth $188,576,000 after acquiring an additional 438,131 shares in the last quarter. Finally, Earnest Partners LLC boosted its position in Webster Financial by 0.6% during the third quarter. Earnest Partners LLC now owns 3,163,124 shares of the financial services provider’s stock valued at $188,016,000 after purchasing an additional 18,860 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Webster Financial Company Profile

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.