Webster Financial (NYSE:WBS) Cut to Hold at TD Cowen

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

Other analysts have also recently issued research reports about the stock. Santander cut shares of Webster Financial to a “hold” rating in a research report on Wednesday. UBS Group lowered Webster Financial from a “buy” rating to a “neutral” rating and cut their target price for the company from $77.00 to $75.00 in a research report on Thursday. Citigroup lowered their target price on Webster Financial from $77.00 to $75.00 and set a “buy” rating for the company in a report on Monday, January 26th. Stephens reissued an “equal weight” rating and issued a $73.00 price target on shares of Webster Financial in a research note on Wednesday. Finally, Royal Bank Of Canada downgraded shares of Webster Financial from a “moderate buy” rating to a “hold” rating and set a $75.00 price objective for the company. in a research report on Wednesday. Six investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $74.36.

Webster Financial Stock Performance

NYSE:WBS opened at $73.28 on Wednesday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. Webster Financial has a fifty-two week low of $39.43 and a fifty-two week high of $73.50. The company has a 50 day simple moving average of $64.69 and a two-hundred day simple moving average of $60.76. The company has a market capitalization of $11.82 billion, a PE ratio of 12.40, a P/E/G ratio of 0.92 and a beta of 1.07.

Webster Financial (NYSE:WBS) last posted its quarterly earnings data on Friday, January 23rd. The financial services provider reported $1.59 EPS for the quarter, beating 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 company had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. During the same period in the prior year, the firm posted $1.43 EPS. Research analysts anticipate that Webster Financial will post 5.88 earnings per share for the current year.

Webster Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders 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 dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, February 9th. Webster Financial’s dividend payout ratio is presently 27.07%.

Insider Activity

In related news, CEO John R. Ciulla sold 8,000 shares of Webster Financial stock in a transaction on Monday, November 17th. The shares were sold at an average price of $55.45, for a total value of $443,600.00. Following the completion of the sale, the chief executive officer owned 231,872 shares of the company’s stock, valued at approximately $12,857,302.40. This trade represents a 3.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WBS. Pinnbrook Capital Management LP grew its holdings in shares of Webster Financial by 43.4% during the fourth quarter. Pinnbrook Capital Management LP now owns 54,380 shares of the financial services provider’s stock valued at $3,423,000 after buying an additional 16,456 shares during the last quarter. Global Retirement Partners LLC raised its holdings in shares of Webster Financial by 5,094.0% in the 4th quarter. Global Retirement Partners LLC now owns 5,194 shares of the financial services provider’s stock worth $327,000 after acquiring an additional 5,094 shares during the last quarter. Algebris UK Ltd. lifted its position in Webster Financial by 37.9% in the 4th quarter. Algebris UK Ltd. now owns 734,428 shares of the financial services provider’s stock valued at $46,247,000 after acquiring an additional 201,789 shares in the last quarter. HighTower Advisors LLC boosted its stake in Webster Financial by 0.8% during the 4th quarter. HighTower Advisors LLC now owns 30,730 shares of the financial services provider’s stock valued at $1,934,000 after purchasing an additional 246 shares during the last quarter. Finally, Gabelli Funds LLC increased its holdings in Webster Financial by 10.1% during the 4th quarter. Gabelli Funds LLC now owns 20,150 shares of the financial services provider’s stock worth $1,268,000 after purchasing an additional 1,850 shares in the last quarter. Institutional investors and hedge funds own 85.58% of the company’s stock.

Key Stories Impacting Webster Financial

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

• Positive Sentiment: Santander agreed to acquire Webster in a transaction that market reports say will increase Santander’s U.S. scale and profitability — this takeover announcement is the primary bullish catalyst for WBS today. Santander to Buy Webster Bank
• Neutral Sentiment: Morgan Stanley trimmed its price target from $77 to $75 and moved to an “equal weight” stance — a modest target cut that still implies small upside vs. current levels, so it’s a minor, mixed signal. Benzinga

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.