Webster Bank (NYSE:WBS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Saturday. The brokerage currently has a $61.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 11.64% from the company’s current price.
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 surpassed the Zacks Consensus Estimate for earnings in three 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, the rising interest rate environment and lower tax rates will further support revenue growth. However, consistently rising cost base remains a major concern. Also, 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.”
A number of other analysts have also weighed in on WBS. ValuEngine upgraded Webster Bank from a “hold” rating to a “buy” rating in a research note on Monday, April 2nd. JPMorgan Chase raised their price target on Webster Bank from $66.00 to $67.00 and gave the company an “overweight” rating in a research note on Wednesday, January 24th. UBS assumed coverage on Webster Bank in a research note on Wednesday, March 21st. They set a “neutral” rating and a $45.00 price target on the stock. Boenning Scattergood restated a “hold” rating on shares of Webster Bank in a research note on Wednesday, January 24th. Finally, Piper Jaffray reaffirmed a “hold” rating and set a $56.00 price objective on shares of Webster Bank in a research report on Tuesday, January 23rd. Two analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company’s stock. Webster Bank currently has a consensus rating of “Hold” and an average target price of $58.42.
WBS stock traded down $1.91 during midday trading on Friday, reaching $54.64. The company’s stock had a trading volume of 491,969 shares, compared to its average volume of 592,776. 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 Bank has a 1 year low of $44.04 and a 1 year high of $60.32. The firm has a market cap of $5,208.88, a price-to-earnings ratio of 21.10, a PEG ratio of 2.08 and a beta of 1.08.
Webster Bank (NYSE:WBS) last released its earnings results on Tuesday, January 23rd. The financial services provider reported $0.73 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.06. Webster Bank had a return on equity of 9.91% and a net margin of 21.77%. The business had revenue of $270.97 million for 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 business’s revenue was up 5.9% compared to the same quarter last year. research analysts expect that Webster Bank will post 3.4 EPS for the current year.
In other Webster Bank news, Director Joel S. Becker sold 5,064 shares of the firm’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $54.22, for a total value of $274,570.08. Following the completion of the sale, the director now owns 58,283 shares of the company’s stock, valued at $3,160,104.26. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Daniel Bley sold 2,917 shares of the firm’s stock in a transaction dated Thursday, January 25th. The stock was sold at an average price of $58.27, for a total value of $169,973.59. Following the completion of the sale, the executive vice president now directly owns 19,804 shares of the company’s stock, valued at approximately $1,153,979.08. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,272 shares of company stock worth $629,959. 2.20% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of WBS. Sei Investments Co. boosted its holdings in Webster Bank by 1,858.5% in the third quarter. Sei Investments Co. now owns 11,849 shares of the financial services provider’s stock worth $623,000 after acquiring an additional 11,244 shares in the last quarter. New York State Common Retirement Fund boosted its holdings in Webster Bank by 2.4% in the third quarter. New York State Common Retirement Fund now owns 472,390 shares of the financial services provider’s stock worth $24,824,000 after acquiring an additional 10,852 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in Webster Bank by 0.3% in the third quarter. Ameriprise Financial Inc. now owns 357,951 shares of the financial services provider’s stock worth $18,811,000 after acquiring an additional 1,019 shares in the last quarter. Legal & General Group Plc boosted its holdings in Webster Bank by 10.3% in the third quarter. Legal & General Group Plc now owns 106,987 shares of the financial services provider’s stock worth $5,622,000 after acquiring an additional 9,973 shares in the last quarter. Finally, Virginia Retirement Systems ET AL purchased a new position in shares of Webster Bank in the third quarter worth about $998,000. 94.60% of the stock is owned by institutional investors and hedge funds.
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About Webster Bank
Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through four segments: Commercial Banking, Community Banking, HSA Bank, and Private Banking.
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