Webster Financial (NYSE:WBS) Stock Rating Lowered by Stephens

Webster Financial (NYSE:WBS) was downgraded by research analysts at Stephens from an “overweight” rating to an “equal weight” rating in a report released on Wednesday, MarketBeat Ratings reports. They presently have a $73.00 target price on the financial services provider’s stock. Stephens’ price objective would suggest a potential upside of 1.34% from the stock’s previous close.

Other analysts have also recently issued reports about the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. Raymond James Financial raised their price objective on Webster Financial from $65.00 to $73.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 7th. Barclays set a $75.00 target price on Webster Financial in a report on Wednesday. UBS Group downgraded Webster Financial from a “buy” rating to a “neutral” rating and reduced their target price for the company from $77.00 to $75.00 in a report on Thursday. Finally, Truist Financial lowered Webster Financial from a “buy” rating to a “hold” rating and set a $74.00 price target for the company. in a research report on Wednesday. Eight analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $74.36.

Webster Financial Price Performance

NYSE:WBS opened at $72.04 on Wednesday. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.40. The business’s 50-day moving average price is $64.42 and its 200 day moving average price is $60.67. Webster Financial has a 52-week low of $39.43 and a 52-week high of $73.50. The firm has a market cap of $11.62 billion, a P/E ratio of 12.19, a PEG ratio of 0.93 and a beta of 1.07.

Webster Financial (NYSE:WBS) last posted its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 earnings per share for the quarter, beating the consensus estimate of $1.52 by $0.07. The company had revenue of $760.48 million during 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 quarter last year, the firm posted $1.43 EPS. As a group, sell-side analysts predict that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO John R. Ciulla sold 8,000 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $12,857,302.40. This represents a 3.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On Webster Financial

Large investors have recently made changes to their positions in the business. Norges Bank acquired a new stake in shares of Webster Financial during the second quarter worth approximately $131,780,000. Alyeska Investment Group L.P. lifted its position in Webster Financial by 7,442.8% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider’s stock worth $120,838,000 after buying an additional 2,005,985 shares in the last quarter. 140 Summer Partners LP purchased a new stake in Webster Financial in the 3rd quarter worth approximately $75,465,000. AQR Capital Management LLC boosted its stake in shares of Webster Financial by 221.0% during the 2nd quarter. AQR Capital Management LLC now owns 1,565,623 shares of the financial services provider’s stock valued at $85,483,000 after buying an additional 1,077,819 shares during the period. Finally, Artemis Investment Management LLP purchased a new position in shares of Webster Financial during the 4th quarter valued at $56,253,000. Institutional investors and hedge funds 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

About Webster Financial

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.