Webster Financial (NYSE:WBS) Reaches New 52-Week High – Should You Buy?

Webster Financial Corporation (NYSE:WBS) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $76.13 and last traded at $76.0620, with a volume of 2587810 shares trading hands. The stock had previously closed at $75.62.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Santander downgraded shares of Webster Financial from a “neutral” rating to an “underweight” rating in a research report on Tuesday, March 3rd. UBS Group started coverage on Webster Financial in a report on Tuesday, April 7th. They issued a “neutral” rating and a $69.00 price target on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Webster Financial in a research note on Friday, June 12th. Wells Fargo & Company upgraded Webster Financial from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 4th. Finally, Keefe, Bruyette & Woods lowered their target price on Webster Financial from $79.00 to $77.50 and set an “outperform” rating on the stock in a report on Friday, May 1st. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $73.96.

Webster Financial Stock Up 0.6%

The company has a market cap of $12.32 billion, a PE ratio of 12.45 and a beta of 1.01. The firm has a 50-day simple moving average of $72.62 and a two-hundred day simple moving average of $69.20. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.87 and a quick ratio of 0.87.

Webster Financial (NYSE:WBS) last posted its quarterly earnings data on Tuesday, April 28th. The financial services provider reported $1.57 EPS for the quarter, beating analysts’ consensus estimates of $1.53 by $0.04. Webster Financial had a return on equity of 11.31% and a net margin of 22.95%.The business had revenue of $764.05 million for the quarter, compared to analyst estimates of $735.26 million. During the same quarter last year, the company earned $1.30 earnings per share. The business’s revenue for the quarter was up 4.4% compared to the same quarter last year. Research analysts anticipate that Webster Financial Corporation will post 6.59 earnings per share for the current fiscal year.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Monday, May 11th were paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Monday, May 11th. Webster Financial’s dividend payout ratio is currently 26.19%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Pinnbrook Capital Management LP acquired a new position in Webster Financial in the third quarter valued at $2,254,000. Dynamic Technology Lab Private Ltd boosted its holdings in Webster Financial by 115.3% in the 3rd quarter. Dynamic Technology Lab Private Ltd now owns 32,940 shares of the financial services provider’s stock worth $1,958,000 after acquiring an additional 17,640 shares during the period. Holocene Advisors LP acquired a new stake in Webster Financial during the 3rd quarter valued at $44,254,000. Polar Asset Management Partners Inc. grew its stake in shares of Webster Financial by 186.3% during the third quarter. Polar Asset Management Partners Inc. now owns 53,817 shares of the financial services provider’s stock valued at $3,199,000 after acquiring an additional 35,017 shares in the last quarter. Finally, Artemis Investment Management LLP purchased a new stake in Webster Financial during the 4th quarter worth approximately $56,253,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

Webster Financial Company Profile

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.