Webster Financial (NYSE:WBS) Price Target Cut to $75.00 by Analysts at Morgan Stanley

Webster Financial (NYSE:WBS) had its price objective decreased by Morgan Stanley from $77.00 to $75.00 in a research note published on Thursday,Benzinga reports. Morgan Stanley currently has an equal weight rating on the financial services provider’s stock.

Several other equities research analysts also recently issued reports on the stock. Truist Financial downgraded shares of 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. JPMorgan Chase & Co. increased their target price on Webster Financial from $70.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, December 16th. Santander lowered Webster Financial to a “hold” rating in a report on Wednesday. Citigroup reduced their price objective on Webster Financial from $77.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, January 26th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Webster Financial in a research report on Monday, December 29th. Eight analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $74.36.

Webster Financial Stock Down 0.3%

Shares of Webster Financial stock opened at $72.04 on Thursday. The company has a market capitalization of $11.62 billion, a P/E 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 current ratio of 0.86 and a quick ratio of 0.86. The business has a 50-day moving average of $64.42 and a two-hundred day moving average of $60.67. Webster Financial has a 1 year low of $39.43 and a 1 year high of $73.50.

Webster Financial (NYSE:WBS) last released 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. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The business had revenue of $760.48 million for the quarter, compared to analysts’ expectations of $731.95 million. During the same quarter in the previous year, the business posted $1.43 EPS. As a group, equities analysts predict that Webster Financial will post 5.88 EPS for the current year.

Webster Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Monday, February 9th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Monday, February 9th. Webster Financial’s dividend payout ratio (DPR) is currently 27.07%.

Insider Buying and Selling at Webster Financial

In other news, CEO John R. Ciulla sold 8,000 shares of the company’s stock in a transaction that occurred 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 sale, the chief executive officer owned 231,872 shares in the company, valued at $12,857,302.40. This represents a 3.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.54% of the stock is owned by company insiders.

Hedge Funds Weigh In On Webster Financial

Institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its stake in Webster Financial by 2.5% in the third quarter. Dimensional Fund Advisors LP now owns 7,812,965 shares of the financial services provider’s stock valued at $464,402,000 after acquiring an additional 189,399 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Webster Financial by 1.2% in the 3rd quarter. Invesco Ltd. now owns 5,359,474 shares of the financial services provider’s stock valued at $318,567,000 after purchasing an additional 63,403 shares during the period. Capital International Investors lifted its stake in Webster Financial by 2.2% in the 3rd quarter. Capital International Investors now owns 4,160,605 shares of the financial services provider’s stock valued at $247,340,000 after purchasing an additional 89,723 shares during the last quarter. American Century Companies Inc. grew its holdings in 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 purchasing an additional 438,131 shares during the period. Finally, Earnest Partners LLC increased 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 worth $188,016,000 after buying an additional 18,860 shares during the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Webster Financial News Roundup

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.