Webster Financial (NYSE:WBS) Downgraded to “Hold” Rating by Barclays

Webster Financial (NYSE:WBS) was downgraded by stock analysts at Barclays from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other analysts have also issued reports on WBS. Stephens restated an “equal weight” rating and issued a $73.00 target price on shares of Webster Financial in a report on Wednesday. Weiss Ratings reissued a “buy (b-)” rating on shares of Webster Financial in a research note on Monday, December 29th. Raymond James Financial raised their price objective on Webster Financial from $65.00 to $73.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 7th. TD Cowen downgraded Webster Financial from a “strong-buy” rating to a “hold” rating in a report on Wednesday. Finally, UBS Group cut shares of Webster Financial from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $77.00 to $75.00 in a report on Thursday. Seven investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $74.36.

Webster Financial Stock Performance

Shares of WBS opened at $72.04 on Wednesday. The company has a 50-day moving average of $64.42 and a two-hundred day moving average of $60.67. The stock has a market cap of $11.62 billion, a price-to-earnings ratio of 12.19, a PEG ratio of 0.93 and a beta of 1.07. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.86 and a quick ratio of 0.86. Webster Financial has a one year low of $39.43 and a one year high of $73.50.

Webster Financial (NYSE:WBS) last released its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.52 by $0.07. Webster Financial had a net margin of 22.67% and a return on equity of 11.10%. The business had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. During the same quarter in the previous year, the business earned $1.43 earnings per share. On average, equities research analysts expect that Webster Financial will post 5.88 earnings per share for the current year.

Insiders Place Their Bets

In other Webster Financial news, CEO John R. Ciulla sold 8,000 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $55.45, for a total value of $443,600.00. Following the completion of the sale, the chief executive officer directly owned 231,872 shares of the company’s stock, valued at $12,857,302.40. The trade was a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.54% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Grove Bank & Trust boosted its position in Webster Financial by 18.7% during the fourth quarter. Grove Bank & Trust now owns 1,005 shares of the financial services provider’s stock valued at $63,000 after purchasing an additional 158 shares during the last quarter. Farther Finance Advisors LLC increased its position in shares of Webster Financial by 39.7% during the 4th quarter. Farther Finance Advisors LLC now owns 560 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 159 shares during the last quarter. Curi Capital LLC raised its stake in shares of Webster Financial by 0.3% during the 2nd quarter. Curi Capital LLC now owns 68,500 shares of the financial services provider’s stock worth $3,740,000 after purchasing an additional 182 shares in the last quarter. Brown Brothers Harriman & Co. boosted its holdings in shares of Webster Financial by 27.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider’s stock valued at $50,000 after buying an additional 183 shares during the last quarter. Finally, BCGM Wealth Management LLC boosted its holdings in shares of Webster Financial by 1.2% in the 2nd quarter. BCGM Wealth Management LLC now owns 16,161 shares of the financial services provider’s stock valued at $882,000 after buying an additional 186 shares during the last quarter. Institutional investors own 85.58% of the company’s stock.

More Webster Financial News

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Santander agreed to buy Webster in a roughly $12.2–$12.3B cash-and-stock deal that values WBS near $75.59 per share — a concrete exit price that benefits holders and explains recent trading. Zacks: WBS Agrees to Buyout
• Neutral Sentiment: Morgan Stanley trimmed its price target to $75 and moved to “equal weight,” leaving only modest upside vs. the deal price — a small technical adjustment rather than a rejection of the transaction. Benzinga: Morgan Stanley PT Cut
• Neutral Sentiment: Other analysts (Investec/Jefferies) framed the takeover as a fair/takeout valuation that limits further upside, supporting “hold”/neutral stances and target levels near the deal price. TipRanks: Hold Rating Notes
• Negative Sentiment: Multiple broker downgrades (TD Cowen, Jefferies, Stephens among others) to “hold”/“equal weight” have increased selling pressure and signaled limited upside ahead of deal close. Zacks: Analyst Downgrades
• Negative Sentiment: Several shareholder-law firms (Kahn Swick & Foti, Halper Sadeh, Johnson Fistel) have opened investigations into the adequacy of price and process for the sale, introducing litigation/closing-risk uncertainty. BusinessWire: KSF Investigation
• Negative Sentiment: Santander’s own shares moved lower after the deal announcement, a reminder that acquirer stock performance (and financing/market reaction) could affect deal dynamics or perceived execution risk. MSN: Santander Shares Down

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.