Seaport Res Ptn Has Negative Outlook for WBS Q2 Earnings

Webster Financial Co. (NYSE:WBS) – Equities researchers at Seaport Res Ptn lowered their Q2 2025 earnings per share (EPS) estimates for shares of Webster Financial in a report issued on Wednesday, April 30th. Seaport Res Ptn analyst L. Hunsicker now expects that the financial services provider will post earnings per share of $1.42 for the quarter, down from their previous forecast of $1.49. The consensus estimate for Webster Financial’s current full-year earnings is $5.88 per share. Seaport Res Ptn also issued estimates for Webster Financial’s Q3 2025 earnings at $1.40 EPS and FY2025 earnings at $5.54 EPS.

Webster Financial (NYSE:WBS) last posted its earnings results on Thursday, April 24th. The financial services provider reported $1.30 earnings per share (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 company had revenue of $704.80 million for the quarter, compared to analyst estimates of $708.46 million. During the same quarter in the prior year, the business posted $1.35 EPS. The business’s quarterly revenue was up 5.7% compared to the same quarter last year.

WBS has been the subject of several other reports. StockNews.com upgraded Webster Financial from a “sell” rating to a “hold” rating in a research note on Saturday, January 11th. Raymond James cut their price objective on shares of Webster Financial from $65.00 to $58.00 and set an “outperform” rating for the company in a report on Wednesday, April 2nd. Morgan Stanley reduced their price target on Webster Financial from $75.00 to $66.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 13th. Royal Bank of Canada set a $60.00 target price on Webster Financial and gave the company an “outperform” rating in a research report on Friday, April 25th. Finally, Keefe, Bruyette & Woods dropped their price target on Webster Financial from $70.00 to $65.00 and set an “outperform” rating for the company in a research note on Friday, April 25th. Three research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $62.73.

Webster Financial Trading Down 1.7 %

Shares of WBS stock opened at $48.65 on Monday. Webster Financial has a 12-month low of $39.34 and a 12-month high of $63.99. The company has a market capitalization of $8.19 billion, a PE ratio of 11.13, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. The firm has a 50 day moving average price of $48.37 and a two-hundred day moving average price of $54.34. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.34.

Institutional Trading of Webster Financial

A number of institutional investors and hedge funds have recently modified their holdings of WBS. FMR LLC increased its stake in shares of Webster Financial by 1.2% during the 4th quarter. FMR LLC now owns 8,493,426 shares of the financial services provider’s stock worth $469,007,000 after purchasing an additional 99,908 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Webster Financial by 0.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 6,620,818 shares of the financial services provider’s stock valued at $365,601,000 after buying an additional 45,310 shares during the last quarter. Capital International Investors increased its holdings in Webster Financial by 0.9% in the 4th quarter. Capital International Investors now owns 4,130,379 shares of the financial services provider’s stock worth $228,000,000 after acquiring an additional 35,039 shares during the last quarter. Earnest Partners LLC raised its stake in Webster Financial by 3.8% in the 4th quarter. Earnest Partners LLC now owns 3,154,160 shares of the financial services provider’s stock valued at $174,173,000 after acquiring an additional 116,508 shares during the period. Finally, T. Rowe Price Investment Management Inc. lifted its holdings in Webster Financial by 4.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,948,701 shares of the financial services provider’s stock valued at $162,828,000 after purchasing an additional 114,375 shares during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Webster Financial

In other Webster Financial news, Director Laurence C. Morse sold 13,217 shares of Webster Financial 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 completion of the transaction, the director now owns 18,808 shares in the company, valued at approximately $1,110,988.56. The trade was a 41.27 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 20th. The shares were sold at an average price of $57.43, for a total value of $459,440.00. Following the completion of the transaction, the chief executive officer now owns 210,051 shares in the company, valued at $12,063,228.93. This represents a 3.67 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,217 shares of company stock worth $1,386,244 over the last quarter. Company insiders own 0.54% of the company’s stock.

Webster Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 22nd. Stockholders of record on Monday, May 12th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 3.29%. The ex-dividend date of this dividend is Monday, May 12th. Webster Financial’s dividend payout ratio (DPR) is presently 36.04%.

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

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.