Webster Financial (NYSE:WBS) Sets New 1-Year High – Should You Buy?

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

Analyst Ratings Changes

WBS has been the topic of several research reports. Wells Fargo & Company increased their target price on Webster Financial from $50.00 to $60.00 and gave the stock an “equal weight” rating in a research 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 stock an “outperform” rating in a report on Friday, October 18th. Morgan Stanley decreased their target price on Webster Financial from $57.00 to $54.00 and set an “equal weight” rating for the company in a report on Monday, September 30th. JPMorgan Chase & Co. cut their price target on shares of Webster Financial from $58.00 to $55.00 and set an “overweight” rating on the stock in a report on Wednesday, October 9th. Finally, Barclays boosted their price objective on shares of Webster Financial from $60.00 to $63.00 and gave the stock an “overweight” rating in a research note on Friday, October 18th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, Webster Financial presently has a consensus rating of “Moderate Buy” and a consensus target price of $57.85.

Webster Financial Trading Up 1.4 %

The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.86 and a current ratio of 0.86. The business’s 50 day moving average price is $51.06 and its 200-day moving average price is $46.91. The firm has a market cap of $10.52 billion, a price-to-earnings ratio of 13.76, a price-to-earnings-growth ratio of 0.89 and a beta of 1.27.

Webster Financial (NYSE:WBS) last announced its quarterly earnings data on Thursday, October 17th. The financial services provider reported $1.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.01). The firm had revenue of $647.62 million for the quarter, compared to analyst estimates 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 previous year, the company earned $1.55 EPS. Equities analysts expect that Webster Financial Co. will post 5.24 EPS for the current year.

Webster Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, November 12th. Shareholders of record on Friday, November 1st were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.61%. The ex-dividend date was Friday, November 1st. Webster Financial’s dividend payout ratio is presently 36.28%.

Insiders Place Their Bets

In other news, insider Daniel Bley sold 3,463 shares of the company’s stock in a transaction that occurred on Monday, October 21st. The stock was sold at an average price of $52.10, for a total transaction of $180,422.30. Following the completion of the transaction, the insider now directly owns 19,529 shares of the company’s stock, valued at approximately $1,017,460.90. This represents a 15.06 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Javier L. Evans sold 10,137 shares of the firm’s stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $57.41, for a total value of $581,965.17. Following the completion of the sale, the insider now directly owns 22,657 shares in the company, valued at approximately $1,300,738.37. This trade represents a 30.91 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 36,750 shares of company stock valued at $2,074,367. Company insiders own 0.88% of the company’s stock.

Institutional Trading of Webster Financial

Hedge funds have recently bought and sold shares of the company. Sound Income Strategies LLC boosted its position in Webster Financial by 1,859.1% during the 2nd quarter. Sound Income Strategies LLC now owns 15,692 shares of the financial services provider’s stock worth $684,000 after acquiring an additional 14,891 shares during the period. Boston Partners boosted its holdings in shares of Webster Financial by 44.2% in the first quarter. Boston Partners now owns 264,937 shares of the financial services provider’s stock valued at $13,439,000 after acquiring an additional 81,201 shares in the last quarter. Texas Permanent School Fund Corp increased its stake in shares of Webster Financial by 13.5% during the second quarter. Texas Permanent School Fund Corp now owns 170,852 shares of the financial services provider’s stock valued at $7,447,000 after acquiring an additional 20,300 shares during the period. Cetera Investment Advisers raised its holdings in Webster Financial by 402.4% during the first quarter. Cetera Investment Advisers now owns 32,066 shares of the financial services provider’s stock worth $1,628,000 after purchasing an additional 25,683 shares in the last quarter. Finally, American Century Companies Inc. lifted its position in Webster Financial by 12.9% in the second quarter. American Century Companies Inc. now owns 2,640,425 shares of the financial services provider’s stock worth $115,096,000 after purchasing an additional 301,935 shares during the period. 85.58% of the stock is currently 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.