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

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

Several other equities research analysts have also recently commented on WBS. JPMorgan Chase & Co. lowered their price target on shares of Webster Financial from $58.00 to $55.00 and set an “overweight” rating for the company in a research report on Wednesday, October 9th. Wells Fargo & Company boosted their price objective on shares of Webster Financial from $60.00 to $70.00 and gave the company an “equal weight” rating in a report on Tuesday, December 3rd. Stephens set a $58.00 price objective on shares of Webster Financial in a report on Thursday, October 17th. Morgan Stanley decreased their price objective on shares of Webster Financial from $57.00 to $54.00 and set an “equal weight” rating for the company in a report on Monday, September 30th. Finally, Royal Bank of Canada boosted their price objective on shares of Webster Financial from $57.00 to $62.00 and gave the company an “outperform” rating in a report on Friday, October 18th. One 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.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $60.31.

Webster Financial Stock Up 1.2 %

Shares of NYSE:WBS opened at $55.48 on Friday. Webster Financial has a one year low of $39.33 and a one year high of $63.99. The company has a 50 day moving average of $57.58 and a 200-day moving average of $50.14. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.86 and a quick ratio of 0.86. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 12.58, a P/E/G ratio of 0.87 and a beta of 1.30.

Webster Financial (NYSE:WBS) last issued its quarterly earnings results on Thursday, October 17th. The financial services provider reported $1.34 EPS for the quarter, missing the consensus estimate 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 analyst estimates of $677.72 million. During the same quarter in the prior year, the firm earned $1.55 EPS. On average, sell-side analysts forecast 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. Shareholders 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 dividend on an annualized basis and a yield of 2.88%. Webster Financial’s payout ratio is 36.28%.

Insiders Place Their Bets

In related news, insider Daniel Bley sold 500 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $61.91, for a total value of $30,955.00. Following the completion of the transaction, the insider now owns 17,279 shares in the company, valued at $1,069,742.89. This trade represents a 2.81 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $59.33, for a total transaction of $474,640.00. Following the completion of the transaction, the chief executive officer now owns 218,924 shares of the company’s stock, valued at approximately $12,988,760.92. This trade represents a 3.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 37,250 shares of company stock worth $2,105,322 over the last ninety days. Corporate insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. CIBC Asset Management Inc increased its position in Webster Financial by 5.4% during the 2nd quarter. CIBC Asset Management Inc now owns 4,821 shares of the financial services provider’s stock valued at $210,000 after purchasing an additional 248 shares during the period. Wolverine Asset Management LLC grew its position in shares of Webster Financial by 172.0% during the 2nd quarter. Wolverine Asset Management LLC now owns 5,054 shares of the financial services provider’s stock worth $220,000 after buying an additional 3,196 shares during the period. Arizona State Retirement System grew its position in shares of Webster Financial by 1.6% during the 2nd quarter. Arizona State Retirement System now owns 48,028 shares of the financial services provider’s stock worth $2,094,000 after buying an additional 749 shares during the period. Quest Partners LLC grew its position in shares of Webster Financial by 44.5% during the 2nd quarter. Quest Partners LLC now owns 61,237 shares of the financial services provider’s stock worth $2,669,000 after buying an additional 18,873 shares during the period. Finally, Choreo LLC acquired a new stake in shares of Webster Financial during the 2nd quarter worth approximately $334,000. Institutional investors own 85.58% of the company’s stock.

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.