Webster Financial (NYSE:WBS) Hits New 52-Week High – What’s Next?

Shares of Webster Financial Corporation (NYSE:WBS) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $65.69 and last traded at $65.8410, with a volume of 74321 shares changing hands. The stock had previously closed at $63.82.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on WBS shares. Keefe, Bruyette & Woods boosted their price objective on Webster Financial from $70.00 to $75.00 and gave the stock an “outperform” rating in a research note on Tuesday, December 16th. Citigroup reiterated a “buy” rating on shares of Webster Financial in a report on Tuesday, December 30th. Morgan Stanley upped their price target on Webster Financial from $64.00 to $77.00 and gave the company an “underperform” rating in a research note on Monday, September 29th. JPMorgan Chase & Co. raised their price objective on Webster Financial from $70.00 to $75.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. Fourteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $70.92.

Webster Financial Price Performance

The firm has a market capitalization of $10.56 billion, a price-to-earnings ratio of 12.16, a price-to-earnings-growth ratio of 0.51 and a beta of 1.05. The stock’s fifty day moving average price is $60.30 and its two-hundred day moving average price is $59.23. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.42.

Webster Financial (NYSE:WBS) last released its quarterly earnings data on Friday, October 17th. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.02. Webster Financial had a net margin of 21.32% and a return on equity of 11.07%. The company had revenue of $756.06 million during the quarter, compared to the consensus estimate of $725.22 million. During the same quarter in the prior year, the firm posted $1.34 earnings per share. Equities research analysts expect that Webster Financial Corporation will post 5.88 EPS for the current year.

Webster Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Monday, November 10th were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Monday, November 10th. Webster Financial’s dividend payout ratio is 29.80%.

Insider Transactions at Webster Financial

In other news, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $55.45, for a total transaction of $443,600.00. Following the sale, the chief executive officer owned 231,872 shares in the company, valued at $12,857,302.40. This trade represents a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.54% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WBS. Norges Bank acquired a new position in shares of Webster Financial in the 2nd quarter valued at about $131,780,000. Alyeska Investment Group L.P. grew its stake in Webster Financial by 7,442.8% during the third quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider’s stock worth $120,838,000 after buying an additional 2,005,985 shares during the period. 140 Summer Partners LP acquired a new stake in shares of Webster Financial in the third quarter worth $75,465,000. AQR Capital Management LLC raised its stake in shares of Webster Financial by 221.0% in the 2nd quarter. AQR Capital Management LLC now owns 1,565,623 shares of the financial services provider’s stock valued at $85,483,000 after acquiring an additional 1,077,819 shares during the period. Finally, Bank of Montreal Can raised its stake in shares of Webster Financial by 65.2% in the 3rd quarter. Bank of Montreal Can now owns 2,070,013 shares of the financial services provider’s stock valued at $123,042,000 after acquiring an additional 817,218 shares during the period. Institutional investors and hedge funds own 85.58% of the company’s stock.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.