Webster Financial (NYSE:WBS) Hits New 52-Week High – Still a Buy?

Shares of Webster Financial Co. (NYSE:WBS) reached a new 52-week high during trading on Friday . The company traded as high as $61.15 and last traded at $61.15, with a volume of 57223 shares. The stock had previously closed at $60.49.

Analysts Set New Price Targets

Several analysts have recently weighed in on WBS shares. JPMorgan Chase & Co. lowered their price objective on shares of Webster Financial from $58.00 to $55.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 9th. Stephens set a $58.00 price target on Webster Financial in a research report on Thursday, October 17th. Wells Fargo & Company upped their price objective on Webster Financial from $50.00 to $60.00 and gave the stock an “equal weight” rating in a report on Friday, October 18th. Royal Bank of Canada raised their price objective on Webster Financial from $57.00 to $62.00 and gave the company an “outperform” rating in a report on Friday, October 18th. Finally, Wedbush boosted their target price on Webster Financial from $52.00 to $59.00 and gave the stock a “neutral” rating in a research report on Friday, October 18th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat, Webster Financial presently has an average rating of “Moderate Buy” and an average price target of $57.85.

Webster Financial Price Performance

The stock has a market capitalization of $10.59 billion, a P/E ratio of 14.00, a price-to-earnings-growth ratio of 0.89 and a beta of 1.27. The business’s 50 day moving average price is $51.40 and its 200 day moving average price is $47.03. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.86 and a quick ratio of 0.86.

Webster Financial (NYSE:WBS) last announced its earnings results on Thursday, October 17th. The financial services provider reported $1.34 earnings per share for the quarter, missing analysts’ consensus estimates of $1.35 by ($0.01). The company had revenue of $647.62 million for the quarter, compared to analysts’ expectations of $677.72 million. Webster Financial had a net margin of 18.80% and a return on equity of 11.03%. During the same quarter in the prior year, the firm posted $1.55 earnings per share. Sell-side analysts forecast that Webster Financial Co. will post 5.24 EPS for the current year.

Webster Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, November 12th. Shareholders of record on Friday, November 1st were paid a dividend of $0.40 per share. The ex-dividend date was Friday, November 1st. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.59%. Webster Financial’s dividend payout ratio is currently 36.28%.

Insider Buying and Selling

In other Webster Financial news, Director Mark Pettie sold 4,500 shares of the company’s stock in a transaction dated Tuesday, October 22nd. The stock was sold at an average price of $51.14, for a total value of $230,130.00. Following the completion of the sale, the director now owns 32,780 shares in the company, valued at $1,676,369.20. This represents a 12.07 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Daniel Bley sold 3,463 shares of the firm’s stock in a transaction dated Monday, October 21st. The stock was sold at an average price of $52.10, for a total value of $180,422.30. Following the completion of the transaction, the insider now directly owns 19,529 shares in the company, valued at $1,017,460.90. This trade represents a 15.06 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 36,750 shares of company stock valued at $2,074,367. 0.88% of the stock is owned by insiders.

Institutional Investors Weigh In On Webster Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WBS. State Street Corp boosted its position in shares of Webster Financial by 4.8% in the third quarter. State Street Corp now owns 7,320,930 shares of the financial services provider’s stock worth $341,229,000 after purchasing an additional 333,606 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Webster Financial by 1.6% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,237,482 shares of the financial services provider’s stock worth $316,678,000 after buying an additional 95,780 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Webster Financial by 28.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 5,522,044 shares of the financial services provider’s stock worth $240,687,000 after buying an additional 1,206,575 shares in the last quarter. Earnest Partners LLC lifted its position in shares of Webster Financial by 0.4% in the second quarter. Earnest Partners LLC now owns 3,086,111 shares of the financial services provider’s stock valued at $134,524,000 after acquiring an additional 13,487 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Webster Financial by 1.9% in the third quarter. Geode Capital Management LLC now owns 2,969,928 shares of the financial services provider’s stock valued at $138,465,000 after acquiring an additional 54,613 shares in the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

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.