Webster Financial (NYSE:WBS) Downgraded by StockNews.com to Sell

StockNews.com downgraded shares of Webster Financial (NYSE:WBS) from a hold rating to a sell rating in a research note published on Friday.

Other equities analysts have also issued reports about the stock. UBS Group began coverage on shares of Webster Financial in a research note on Tuesday, December 17th. They issued a “buy” rating and a $76.00 target price for the company. JPMorgan Chase & Co. reduced their price objective on Webster Financial from $58.00 to $55.00 and set an “overweight” rating for the company in a research report on Wednesday, October 9th. Stephens set a $58.00 target price on Webster Financial in a research report on Thursday, October 17th. Morgan Stanley reduced their price target on Webster Financial from $57.00 to $54.00 and set an “equal weight” rating for the company in a research report on Monday, September 30th. Finally, Barclays lifted their price objective on shares of Webster Financial from $63.00 to $69.00 and gave the company an “overweight” rating in a report on Thursday, December 5th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Webster Financial presently has an average rating of “Moderate Buy” and a consensus price target of $60.31.

Webster Financial Stock Up 1.2 %

NYSE:WBS opened at $55.48 on Friday. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 12.58, a PEG ratio of 0.87 and a beta of 1.29. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.45. The stock has a 50-day moving average price of $57.58 and a two-hundred day moving average price of $50.01. Webster Financial has a 1 year low of $39.33 and a 1 year high of $63.99.

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

Webster Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, November 12th. Stockholders of record on Friday, November 1st were paid a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, November 1st. This represents a $1.60 annualized dividend and a dividend yield of 2.88%. Webster Financial’s dividend payout ratio is presently 36.28%.

Insider Activity at Webster Financial

In related news, insider Daniel Bley sold 3,463 shares of the stock in a transaction on Monday, October 21st. The stock was sold at an average price of $52.10, for a total value of $180,422.30. Following the sale, the insider now owns 19,529 shares in the company, valued at approximately $1,017,460.90. This represents a 15.06 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Albert Jen-Wen Wang sold 4,000 shares of Webster Financial stock in a transaction on Monday, October 21st. The stock was sold at an average price of $52.43, for a total transaction of $209,720.00. Following the transaction, the chief accounting officer now directly owns 14,273 shares of the company’s stock, valued at approximately $748,333.39. This trade represents a 21.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 37,250 shares of company stock worth $2,105,322. Insiders own 0.72% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. V Square Quantitative Management LLC acquired a new position in shares of Webster Financial in the third quarter valued at approximately $27,000. UMB Bank n.a. boosted its stake in Webster Financial by 340.7% in the 3rd quarter. UMB Bank n.a. now owns 595 shares of the financial services provider’s stock valued at $28,000 after purchasing an additional 460 shares during the period. Brooklyn Investment Group acquired a new position in Webster Financial in the 3rd quarter valued at $53,000. NBC Securities Inc. increased its position in Webster Financial by 117.9% during the 3rd quarter. NBC Securities Inc. now owns 1,268 shares of the financial services provider’s stock worth $59,000 after buying an additional 686 shares during the period. Finally, First Horizon Advisors Inc. lifted its holdings in shares of Webster Financial by 45.9% during the third quarter. First Horizon Advisors Inc. now owns 1,398 shares of the financial services provider’s stock worth $65,000 after buying an additional 440 shares in the last quarter. 85.58% of the stock is owned by 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.