Webster Financial (NYSE:WBS) Shares Gap Down on Disappointing Earnings

Webster Financial Co. (NYSE:WBS) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $47.17, but opened at $45.82. Webster Financial shares last traded at $45.35, with a volume of 478,059 shares trading hands.

The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.02). The firm had revenue of $667.10 million during the quarter, compared to analyst estimates of $680.72 million. Webster Financial had a net margin of 21.09% and a return on equity of 12.55%. Webster Financial’s quarterly revenue was up .2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.49 EPS.

Analyst Upgrades and Downgrades

Several research firms have weighed in on WBS. Jefferies Financial Group decreased their price target on shares of Webster Financial from $65.00 to $56.00 and set a “buy” rating for the company in a research note on Monday, April 8th. StockNews.com downgraded shares of Webster Financial from a “hold” rating to a “sell” rating in a research report on Tuesday, April 16th. JPMorgan Chase & Co. decreased their target price on shares of Webster Financial from $65.00 to $63.00 and set an “overweight” rating for the company in a research report on Wednesday. Morgan Stanley upped their price objective on shares of Webster Financial from $51.00 to $61.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 7th. Finally, Royal Bank of Canada reduced their price objective on shares of Webster Financial from $57.00 to $54.00 and set an “outperform” rating for the company in a research report on Wednesday. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and twelve have assigned a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $56.23.

Insider Buying and Selling at Webster Financial

In other Webster Financial news, insider Christopher J. Motl sold 10,475 shares of the business’s stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $52.40, for a total value of $548,890.00. Following the transaction, the insider now directly owns 63,306 shares in the company, valued at $3,317,234.40. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, insider Daniel Bley sold 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 29th. The shares were sold at an average price of $47.60, for a total value of $95,200.00. Following the completion of the transaction, the insider now directly owns 27,955 shares of the company’s stock, valued at approximately $1,330,658. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Christopher J. Motl sold 10,475 shares of the firm’s stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $52.40, for a total transaction of $548,890.00. Following the completion of the transaction, the insider now directly owns 63,306 shares of the company’s stock, valued at $3,317,234.40. The disclosure for this sale can be found here. Insiders have sold a total of 25,975 shares of company stock worth $1,341,095 over the last three months. 0.88% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of WBS. AE Wealth Management LLC boosted its holdings in Webster Financial by 49.9% in the 3rd quarter. AE Wealth Management LLC now owns 11,785 shares of the financial services provider’s stock worth $475,000 after buying an additional 3,924 shares during the period. Benin Management CORP bought a new position in Webster Financial in the 3rd quarter valued at $207,000. Commonwealth Equity Services LLC boosted its holdings in Webster Financial by 4.2% in the 3rd quarter. Commonwealth Equity Services LLC now owns 86,977 shares of the financial services provider’s stock valued at $3,506,000 after purchasing an additional 3,505 shares during the period. Cambridge Investment Research Advisors Inc. boosted its holdings in Webster Financial by 12.1% in the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 7,325 shares of the financial services provider’s stock valued at $295,000 after purchasing an additional 792 shares during the period. Finally, Raymond James Financial Services Advisors Inc. boosted its holdings in Webster Financial by 31.0% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 24,979 shares of the financial services provider’s stock valued at $1,007,000 after purchasing an additional 5,915 shares during the period. 85.58% of the stock is owned by institutional investors.

Webster Financial Stock Performance

The company’s fifty day simple moving average is $47.97 and its 200 day simple moving average is $46.50. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $7.82 billion, a P/E ratio of 9.33, a P/E/G ratio of 0.37 and a beta of 1.33.

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.