Principal Financial Group Inc. Sells 72,294 Shares of Webster Financial Corporation $WBS

Principal Financial Group Inc. reduced its stake in shares of Webster Financial Corporation (NYSE:WBS) by 8.1% in the 3rd quarter, Holdings Channel.com reports. The institutional investor owned 815,225 shares of the financial services provider’s stock after selling 72,294 shares during the quarter. Principal Financial Group Inc.’s holdings in Webster Financial were worth $48,457,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of WBS. Root Financial Partners LLC acquired a new position in Webster Financial during the third quarter valued at approximately $29,000. Wilmington Savings Fund Society FSB bought a new position in shares of Webster Financial during the third quarter worth $33,000. IFP Advisors Inc grew its holdings in shares of Webster Financial by 3,628.6% in the 2nd quarter. IFP Advisors Inc now owns 783 shares of the financial services provider’s stock valued at $43,000 after buying an additional 762 shares during the period. Quent Capital LLC acquired a new position in shares of Webster Financial in the 3rd quarter valued at $47,000. Finally, Parkside Financial Bank & Trust increased its position in shares of Webster Financial by 56.1% in the 2nd quarter. Parkside Financial Bank & Trust now owns 829 shares of the financial services provider’s stock valued at $45,000 after buying an additional 298 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Webster Financial

In related news, CEO John R. Ciulla sold 8,000 shares of Webster Financial stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $55.45, for a total value of $443,600.00. Following the sale, the chief executive officer owned 231,872 shares of the company’s stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through the SEC website. 0.54% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have weighed in on WBS. Wells Fargo & Company reduced their target price on Webster Financial from $75.00 to $70.00 and set an “overweight” rating on the stock in a report on Monday, October 20th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Webster Financial in a report on Monday, December 29th. Citigroup decreased their price objective on Webster Financial from $77.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, January 26th. Jefferies Financial Group set a $75.00 target price on shares of Webster Financial in a report on Wednesday. Finally, JPMorgan Chase & Co. upped their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, December 16th. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Webster Financial has an average rating of “Moderate Buy” and a consensus target price of $74.07.

Webster Financial Trading Up 0.7%

NYSE:WBS opened at $72.42 on Thursday. The company has a market cap of $11.68 billion, a P/E ratio of 12.25, a price-to-earnings-growth ratio of 0.92 and a beta of 1.07. Webster Financial Corporation has a twelve month low of $39.43 and a twelve month high of $73.50. The business has a 50 day moving average price of $64.17 and a two-hundred day moving average price of $60.59. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.40.

Webster Financial (NYSE:WBS) last announced its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, topping 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 firm posted $1.43 earnings per share. As a group, analysts expect that Webster Financial Corporation will post 5.88 EPS for the current fiscal year.

Webster Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Monday, February 9th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Monday, February 9th. Webster Financial’s dividend payout ratio is currently 27.07%.

Key Headlines Impacting Webster Financial

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

• Positive Sentiment: Definitive merger agreement: Webster will be acquired by Banco Santander in a $12.3 billion cash‑and‑stock deal that pays Webster shareholders $48.75 in cash plus 2.0548 Santander American Depository Shares per WBS share (implying roughly $75.59/share based on Santander stock). The deal is expected to close in the second half of 2026 and provides an outsized near‑term valuation for WBS holders. Webster Financial Corporation Enters Into Merger Agreement
• Neutral Sentiment: Analysts mark limited upside post‑takeover: Several sell‑side analysts have moved to Hold and set price targets near the takeout level (around $74–$75), noting the acquisition caps upside for WBS shares before deal close. That reduces incentive for speculative buyers above the tender/implied price. Hold Rating on Webster Financial
• Neutral Sentiment: Trading dynamics: WBS experienced a temporary trading halt when the deal was announced and is now trading with materially higher volume — an indication of takeover-related flows rather than fresh fundamental news. (Halts and heavy volume are typical around deal announcements and can increase intraday volatility.)
• Negative Sentiment: Multiple shareholder law firms have launched investigations and shareholder alerts questioning whether Webster’s board obtained a fair price and followed proper process; firms involved include Kahn Swick & Foti, Halper Sadeh, Johnson Fistel and Ademi. Potential litigation or challenges could delay closing, increase transaction costs, or pressure deal terms. KSF Investor Alert Halper Sadeh Alert Johnson Fistel Investigation Ademi Firm Alert

Webster Financial 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.