Webster Financial Corporation (NYSE:WBS) Given Average Recommendation of “Moderate Buy” by Brokerages

Webster Financial Corporation (NYSE:WBS) has received a consensus recommendation of “Moderate Buy” from the fourteen analysts that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation and thirteen have issued a buy recommendation on the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $72.7692.

Several equities analysts have commented on the stock. Morgan Stanley increased their target price on shares of Webster Financial from $64.00 to $77.00 and gave the stock an “underperform” rating in a research report on Monday, September 29th. UBS Group reissued a “buy” rating on shares of Webster Financial in a report on Tuesday, January 6th. Weiss Ratings reissued a “buy (b-)” rating on shares of Webster Financial in a research note on Monday, December 29th. TD Cowen decreased their target price on Webster Financial from $78.00 to $77.00 and set a “buy” rating for the company in a research report on Wednesday, January 7th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an “overweight” rating in a research report on Tuesday, December 16th.

Webster Financial News Summary

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

• Positive Sentiment: Q4 earnings beat — Adjusted EPS of $1.59 topped consensus and net income rose year-over-year; revenue of ~$760.5M also exceeded estimates, driven by loan growth. These beats are the primary fundamental drivers supporting the shares. Business Wire: Webster Reports Fourth Quarter 2025
• Positive Sentiment: Loan-led revenue growth highlighted by multiple outlets — analysts point to core loan expansion as a key revenue driver this quarter, supporting margin stability. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst bullish case: Seeking Alpha keeps WBS as a Buy with a $70 target, citing low‑cost, sticky deposit mix (notably the HSA franchise), resilient credit quality, and strong capital — factors that can sustain earnings and limit rate‑sensitivity vs. peers. Seeking Alpha: Low-Cost Deposit Growth Can Drive Further Upside
• Neutral Sentiment: Earnings call transcript and slides are available for deeper read — management commentary and slides will be useful to assess sustainability of loan growth, deposit trends, and one-time items included in results. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst estimate revisions were active ahead of the print — some shops updated forecasts pre-earnings, which can amplify intraday moves even when results beat. Benzinga: Analysts Revise Forecasts Ahead Of Earnings
• Negative Sentiment: CRE exposure is a noted risk — Seeking Alpha flags roughly $1.3B in rent‑regulated loans and other CRE concentrations; while reserves and capital are positioned well, this portfolio remains a potential headwind if localized stress emerges. Seeking Alpha: CRE Exposure Note
• Negative Sentiment: Market reaction: despite the beat, the stock is trading lower on the session with above-average volume — suggests profit-taking, where investors are parsing one-time items (gains on debt redemption, charitable items) and portfolio risks rather than the headline beat. MarketBeat: WBS Stock Page

Webster Financial Price Performance

Shares of WBS opened at $64.13 on Friday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.85 and a current ratio of 0.85. The firm has a market cap of $10.34 billion, a PE ratio of 11.94, a PEG ratio of 0.55 and a beta of 1.05. The firm’s 50 day moving average price is $62.60 and its 200 day moving average price is $60.15. Webster Financial has a twelve month low of $39.43 and a twelve month high of $67.43.

Webster Financial (NYSE:WBS) last announced its quarterly earnings results on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, topping the consensus estimate of $1.52 by $0.07. The company had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. Webster Financial had a net margin of 21.32% and a return on equity of 11.07%. During the same quarter in the prior year, the business posted $1.43 EPS. As a group, research analysts expect that Webster Financial will post 5.88 EPS for the current fiscal year.

Webster Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Monday, November 10th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.5%. The ex-dividend date was Monday, November 10th. Webster Financial’s dividend payout ratio (DPR) is 29.80%.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Webster Financial

Institutional investors have recently made changes to their positions in the business. Farther Finance Advisors LLC lifted its position in shares of Webster Financial by 39.7% during the 4th quarter. Farther Finance Advisors LLC now owns 560 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 159 shares during the last quarter. Assetmark Inc. lifted its holdings in shares of Webster Financial by 12.3% during the fourth quarter. Assetmark Inc. now owns 2,640 shares of the financial services provider’s stock worth $166,000 after buying an additional 289 shares during the last quarter. Choreo LLC boosted its position in shares of Webster Financial by 6.5% in the fourth quarter. Choreo LLC now owns 6,954 shares of the financial services provider’s stock valued at $442,000 after acquiring an additional 425 shares during the period. V Square Quantitative Management LLC acquired a new stake in shares of Webster Financial in the fourth quarter worth $37,000. Finally, South Shore Capital Advisors bought a new position in Webster Financial during the fourth quarter worth $283,000. 85.58% of the stock is currently owned by institutional investors.

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.