Webster Financial (NYSE:WBS) Downgraded by Barclays to “Hold”

Barclays downgraded shares of Webster Financial (NYSE:WBS) from a strong-buy rating to a hold rating in a research note published on Wednesday,Zacks.com reports.

WBS has been the subject of several other research reports. Weiss Ratings reissued a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. TD Cowen lowered shares of Webster Financial from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Morgan Stanley lowered their target price on shares of Webster Financial from $77.00 to $75.00 and set an “equal weight” rating for the company in a research note on Thursday. Raymond James Financial upped their price target 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, JPMorgan Chase & Co. raised their price target on shares of Webster Financial from $70.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, December 16th. Seven analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $74.36.

Webster Financial Price Performance

NYSE WBS opened at $72.04 on Wednesday. The firm’s fifty day simple moving average is $64.42 and its two-hundred day simple moving average is $60.67. The firm has a market capitalization of $11.62 billion, a P/E ratio of 12.19, a P/E/G ratio of 0.93 and a beta of 1.07. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.40. Webster Financial has a 12-month low of $39.43 and a 12-month high of $73.50.

Webster Financial (NYSE:WBS) last issued its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 EPS 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 firm had revenue of $760.48 million during the quarter, compared to analyst estimates of $731.95 million. During the same quarter in the prior year, the business posted $1.43 EPS. Analysts forecast that Webster Financial will post 5.88 EPS for the current fiscal year.

Webster Financial Announces Dividend

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

Insider Activity

In related news, CEO John R. Ciulla sold 8,000 shares of the business’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $55.45, for a total transaction of $443,600.00. Following the completion of the transaction, the chief executive officer directly owned 231,872 shares in the company, valued at $12,857,302.40. The trade was a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Webster Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Grove Bank & Trust boosted its stake in shares of Webster Financial by 18.7% in the fourth quarter. Grove Bank & Trust now owns 1,005 shares of the financial services provider’s stock worth $63,000 after buying an additional 158 shares during the last quarter. Farther Finance Advisors LLC raised its position in Webster Financial by 39.7% during the fourth quarter. Farther Finance Advisors LLC now owns 560 shares of the financial services provider’s stock valued at $35,000 after acquiring an additional 159 shares in the last quarter. Curi Capital LLC lifted its holdings in Webster Financial by 0.3% in the second quarter. Curi Capital LLC now owns 68,500 shares of the financial services provider’s stock valued at $3,740,000 after acquiring an additional 182 shares during the period. Brown Brothers Harriman & Co. lifted its holdings in Webster Financial by 27.9% in the third quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider’s stock valued at $50,000 after acquiring an additional 183 shares during the period. Finally, BCGM Wealth Management LLC boosted its position in Webster Financial by 1.2% in the 2nd quarter. BCGM Wealth Management LLC now owns 16,161 shares of the financial services provider’s stock worth $882,000 after purchasing an additional 186 shares in the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Webster Financial

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.