Webster Financial (NYSE:WBS) Stock Rating Lowered by Jefferies Financial Group

Webster Financial (NYSE:WBS) was downgraded by analysts at Jefferies Financial Group from a “strong-buy” rating to a “hold” rating in a report released on Wednesday,Zacks.com reports.

WBS has been the subject of several other reports. Truist Financial cut Webster Financial from a “buy” rating to a “hold” rating and set a $74.00 price objective for the company. in a research report on Wednesday. Barclays set a $75.00 target price on shares of Webster Financial in a research note on Wednesday. JPMorgan Chase & Co. raised their price target on Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, December 16th. Raymond James Financial raised their price objective on shares of Webster Financial from $65.00 to $73.00 and gave the company an “outperform” rating in a research note on Wednesday, January 7th. Finally, UBS Group cut Webster Financial from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $77.00 to $75.00 in a report on Thursday. Eight analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Webster Financial presently has a consensus rating of “Moderate Buy” and a consensus target price of $74.36.

Webster Financial Stock Down 0.3%

Webster Financial stock opened at $72.04 on Wednesday. The company has a market capitalization of $11.62 billion, a PE ratio of 12.19, a price-to-earnings-growth ratio of 0.93 and a beta of 1.07. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. Webster Financial has a fifty-two week low of $39.43 and a fifty-two week high of $73.50. The firm has a 50 day moving average price of $64.42 and a 200 day moving average price of $60.67.

Webster Financial (NYSE:WBS) last issued its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07. The company had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. Webster Financial had a net margin of 22.67% and a return on equity of 11.10%. During the same period in the prior year, the firm earned $1.43 earnings per share. Research analysts expect that Webster Financial will post 5.88 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Webster Financial

Institutional investors and hedge funds have recently modified their holdings of the stock. BOKF NA purchased a new stake in shares of Webster Financial during the 3rd quarter valued at about $26,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Webster Financial during the fourth quarter valued at approximately $28,000. Root Financial Partners LLC acquired a new position in shares of Webster Financial during the third quarter worth $29,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Webster Financial in the third quarter valued at $29,000. Finally, Wilmington Savings Fund Society FSB purchased a new position in shares of Webster Financial in the third quarter valued at $33,000. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Key Webster Financial News

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

• Positive Sentiment: Santander agreed to buy Webster in a roughly $12.2–$12.3B cash-and-stock deal that values WBS near $75.59 per share — a concrete exit price that benefits holders and explains recent trading. Zacks: WBS Agrees to Buyout
• Neutral Sentiment: Morgan Stanley trimmed its price target to $75 and moved to “equal weight,” leaving only modest upside vs. the deal price — a small technical adjustment rather than a rejection of the transaction. Benzinga: Morgan Stanley PT Cut
• Neutral Sentiment: Other analysts (Investec/Jefferies) framed the takeover as a fair/takeout valuation that limits further upside, supporting “hold”/neutral stances and target levels near the deal price. TipRanks: Hold Rating Notes
• Negative Sentiment: Multiple broker downgrades (TD Cowen, Jefferies, Stephens among others) to “hold”/“equal weight” have increased selling pressure and signaled limited upside ahead of deal close. Zacks: Analyst Downgrades
• Negative Sentiment: Several shareholder-law firms (Kahn Swick & Foti, Halper Sadeh, Johnson Fistel) have opened investigations into the adequacy of price and process for the sale, introducing litigation/closing-risk uncertainty. BusinessWire: KSF Investigation
• Negative Sentiment: Santander’s own shares moved lower after the deal announcement, a reminder that acquirer stock performance (and financing/market reaction) could affect deal dynamics or perceived execution risk. MSN: Santander Shares Down

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.