Webster Financial (WBS) – Analysts’ Recent Ratings Updates

A number of firms have modified their ratings and price targets on shares of Webster Financial (NYSE: WBS) recently:

  • 1/26/2018 – Webster Financial had its price target raised by analysts at Morgan Stanley from $54.00 to $56.00. They now have an “underweight” rating on the stock.
  • 1/24/2018 – Webster Financial had its price target raised by analysts at JPMorgan Chase & Co. from $66.00 to $67.00. They now have an “overweight” rating on the stock.
  • 1/24/2018 – Webster Financial had its “hold” rating reaffirmed by analysts at Boenning Scattergood. They wrote, “Webster reported 4Q17 operating EPS of $0.77 versus $0.53 in the year- prior quarter. Our estimate was $0.74. Operating results included a $0.09 per share benefit related to a reevaluation of state-level DTAs partially offset by a negative valuation adjustment to the Federal DTA. This was previously announced. On a sequential-quarter basis, NIM expanded 3 bps to 3.33% while Webster’s loan-to-deposit spread increased 5 bps. Higher borrowing costs dragged on NIM. On a linked-quarter basis, period-end loans and deposits grew 1.5% and 2.7%, annualized, respectively. Loan growth was concentrated in C&I and CRE. Deposit growth was concentrated in NOW, HSA, and CDs. Asset quality was mixed during the quarter, but, in our opinion, generally favorable. Though charge-offs increased to 34 bps from 18 bps in 3Q17, the decrease in NPAs in both absolute and relative terms was greater than charge-offs as loans reached positive resolution.””
  • 1/23/2018 – Webster Financial had its “hold” rating reaffirmed by analysts at Sandler O’Neill. They now have a $60.00 price target on the stock.
  • 1/23/2018 – Webster Financial had its “hold” rating reaffirmed by analysts at Piper Jaffray Companies. They now have a $56.00 price target on the stock.
  • 1/18/2018 – Webster Financial had its “hold” rating reaffirmed by analysts at Boenning Scattergood.
  • 1/9/2018 – Webster Financial had its “market perform” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $60.00 price target on the stock, up previously from $55.00.
  • 1/6/2018 – Webster Financial was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. They now have a $63.00 price target on the stock. According to Zacks, “Shares of Webster Financial have outperformed the industry over the past six months. The performance was supported by the company’s impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters.  Webster Financial’s consistent growth in loans and deposits will aid profitability. Also, top-line strength and ample liquidity keep us encouraged. Notably, following the recent Fed interest rate hike, the company raised its prime lending rate to 4.50% from 4.25%, which will further support revenue growth. Its efforts to strengthen HSA Bank segment bode well for the long term. However, consistently rising cost base remains a major concern. Also, significant exposure to commercial loans could pose a threat to its financials.”
  • 1/5/2018 – Webster Financial was upgraded by analysts at Piper Jaffray Companies from an “underweight” rating to a “neutral” rating. They now have a $55.00 price target on the stock.
  • 1/2/2018 – Webster Financial had its price target raised by analysts at Barclays PLC from $55.00 to $59.00. They now have an “overweight” rating on the stock.
  • 12/22/2017 – Webster Financial had its “buy” rating reaffirmed by analysts at Keefe, Bruyette & Woods. They now have a $71.00 price target on the stock.
  • 12/20/2017 – Webster Financial was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $64.00 price target on the stock. According to Zacks, “Shares of Webster Financial have outperformed the industry over the past six months. The performance was supported by the company’s impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters.  Webster Financial’s consistent growth in loans and deposits will aid profitability. Also, top-line strength and ample liquidity keep us encouraged. Notably, following the recent Fed interest rate hike, the company raised its prime lending rate to 4.50% from 4.25%, which will further support revenue growth. However, consistently rising cost base remains a major concern and significant exposure to commercial loans could pose a threat to its financials. Nevertheless, its efforts to strengthen HSA Bank segment bode well for the long term.”

Shares of Webster Financial Co. (NYSE WBS) opened at $54.75 on Thursday. Webster Financial Co. has a 52 week low of $44.04 and a 52 week high of $60.32. The company has a market capitalization of $5,130.00, a price-to-earnings ratio of 20.51, a P/E/G ratio of 2.02 and a beta of 1.14. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.74.

Webster Financial (NYSE:WBS) last announced its quarterly earnings results on Tuesday, January 23rd. The financial services provider reported $0.73 EPS for the quarter, topping analysts’ consensus estimates of $0.67 by $0.06. Webster Financial had a return on equity of 9.91% and a net margin of 21.77%. The company had revenue of $270.97 million during the quarter, compared to analyst estimates of $269.64 million. During the same quarter last year, the firm posted $0.60 earnings per share. The firm’s revenue was up 5.9% on a year-over-year basis. analysts expect that Webster Financial Co. will post 3.35 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 27th. Investors of record on Tuesday, February 13th will be paid a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.90%. The ex-dividend date of this dividend is Monday, February 12th. Webster Financial’s payout ratio is 38.95%.

In other Webster Financial news, EVP Daniel Bley sold 2,917 shares of the firm’s stock in a transaction on Thursday, January 25th. The stock was sold at an average price of $58.27, for a total transaction of $169,973.59. Following the completion of the transaction, the executive vice president now owns 19,804 shares of the company’s stock, valued at $1,153,979.08. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mark Pettie sold 3,291 shares of the firm’s stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $56.34, for a total value of $185,414.94. Following the transaction, the director now directly owns 16,405 shares of the company’s stock, valued at approximately $924,257.70. The disclosure for this sale can be found here. Insiders sold 11,272 shares of company stock valued at $629,959 in the last ninety days. 2.20% of the stock is currently owned by insiders.

Webster Financial Corporation is a bank and financial holding company. The Company’s segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. The Commercial Banking segment includes middle-market, asset-based lending, commercial real estate, equipment finance, and treasury and payment solutions, which includes government and institutional banking.

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