Webster Financial (NYSE:WBS) Downgraded by TD Cowen to “Hold”

TD Cowen downgraded shares of Webster Financial (NYSE:WBS) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks.com reports.

A number of other analysts have also commented on WBS. JPMorgan Chase & Co. boosted their price objective on shares of Webster Financial from $70.00 to $75.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Wells Fargo & Company reduced their price objective on shares of Webster Financial from $75.00 to $70.00 and set an “overweight” rating for the company in a research note on Monday, October 20th. Keefe, Bruyette & Woods lifted their target price on Webster Financial from $75.00 to $77.00 and gave the company an “outperform” rating in a research report on Monday, January 26th. Santander lowered Webster Financial to a “hold” rating in a report on Wednesday. Finally, Barclays set a $75.00 price target on Webster Financial in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $74.50.

Webster Financial Stock Performance

Shares of Webster Financial stock opened at $72.42 on Wednesday. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.86 and a quick ratio of 0.86. The firm has a market cap of $11.68 billion, a price-to-earnings ratio of 12.25, a price-to-earnings-growth ratio of 0.92 and a beta of 1.07. The stock’s 50-day moving average is $64.17 and its 200-day moving average is $60.59. Webster Financial has a one year low of $39.43 and a one year high of $73.50.

Webster Financial (NYSE:WBS) last posted its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The business had revenue of $760.48 million during the quarter, compared to the consensus estimate of $731.95 million. During the same period last year, the company earned $1.43 earnings per share. Equities analysts predict that Webster Financial will post 5.88 earnings per share for the current fiscal year.

Webster Financial Announces Dividend

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

Insider Activity at Webster Financial

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

Institutional Trading of Webster Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. Assenagon Asset Management S.A. grew its position in shares of Webster Financial by 959.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 358,294 shares of the financial services provider’s stock worth $21,297,000 after purchasing an additional 324,471 shares in the last quarter. Campbell & CO Investment Adviser LLC bought a new stake in shares of Webster Financial in the third quarter valued at approximately $1,991,000. Norges Bank bought a new stake in shares of Webster Financial in the second quarter valued at approximately $131,780,000. Pzena Investment Management LLC grew its position in Webster Financial by 1.5% during the second quarter. Pzena Investment Management LLC now owns 1,612,758 shares of the financial services provider’s stock worth $88,057,000 after buying an additional 23,605 shares in the last quarter. Finally, M&T Bank Corp increased its stake in Webster Financial by 550.7% during the 2nd quarter. M&T Bank Corp now owns 44,295 shares of the financial services provider’s stock worth $2,418,000 after acquiring an additional 37,488 shares during the period. Institutional investors own 85.58% of the company’s stock.

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

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.