Webster Financial Co. (NYSE:WBS) Receives $62.58 Consensus Target Price from Brokerages

Shares of Webster Financial Co. (NYSE:WBS) have received an average rating of “Moderate Buy” from the eleven research firms that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $63.75.

Several equities analysts recently weighed in on WBS shares. Truist Financial began coverage on Webster Financial in a research note on Tuesday, May 13th. They issued a “buy” rating and a $61.00 price objective for the company. Morgan Stanley cut their price target on Webster Financial from $75.00 to $66.00 and set an “equal weight” rating for the company in a research note on Thursday, March 13th. Royal Bank of Canada set a $60.00 price objective on shares of Webster Financial and gave the company an “outperform” rating in a research note on Friday, April 25th. Barclays dropped their target price on shares of Webster Financial from $80.00 to $72.00 and set an “overweight” rating for the company in a report on Tuesday, April 8th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Webster Financial from $70.00 to $65.00 and set an “outperform” rating on the stock in a report on Friday, April 25th.

Webster Financial Price Performance

Webster Financial stock opened at $50.69 on Monday. The business has a fifty day moving average of $48.48 and a two-hundred day moving average of $54.32. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.84 and a current ratio of 0.84. The company has a market cap of $8.53 billion, a P/E ratio of 11.60, a price-to-earnings-growth ratio of 1.02 and a beta of 0.98. Webster Financial has a one year low of $39.34 and a one year high of $63.99.

Webster Financial (NYSE:WBS) last issued its earnings results on Thursday, April 24th. The financial services provider reported $1.30 earnings per share for the quarter, missing the consensus estimate 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 previous year, the company posted $1.35 earnings per share. The company’s quarterly revenue was up 5.7% compared to the same quarter last year. As a group, analysts predict that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Webster Financial announced that its Board of Directors has initiated a share buyback program on Thursday, May 1st that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 8.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

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 $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.16%. The ex-dividend date of this dividend is Monday, May 12th. Webster Financial’s dividend payout ratio is presently 36.04%.

Insider Buying and Selling

In related news, insider Daniel Bley sold 1,800 shares of the company’s stock in a transaction on Tuesday, April 29th. The stock was sold at an average price of $47.84, for a total value of $86,112.00. Following the completion of the transaction, the insider now directly owns 21,517 shares in the company, valued at approximately $1,029,373.28. This represents a 7.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.54% of the stock is owned by company insiders.

Institutional Trading of Webster Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Barclays PLC boosted its position in shares of Webster Financial by 36.4% in the third quarter. Barclays PLC now owns 297,834 shares of the financial services provider’s stock worth $13,883,000 after acquiring an additional 79,556 shares during the last quarter. Brookstone Capital Management purchased a new position in Webster Financial during the fourth quarter worth approximately $298,000. Park Avenue Securities LLC acquired a new position in shares of Webster Financial in the 4th quarter valued at $246,000. Hennion & Walsh Asset Management Inc. acquired a new position in shares of Webster Financial in the 4th quarter valued at $269,000. Finally, HB Wealth Management LLC purchased a new stake in shares of Webster Financial during the 4th quarter valued at $316,000. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Webster Financial Company Profile

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.