Wedbush Comments on Webster Financial Co.’s Q1 2024 Earnings (NYSE:WBS)

Webster Financial Co. (NYSE:WBS) – Wedbush decreased their Q1 2024 earnings per share (EPS) estimates for shares of Webster Financial in a report released on Wednesday, March 27th. Wedbush analyst D. Chiaverini now anticipates that the financial services provider will post earnings of $1.33 per share for the quarter, down from their prior forecast of $1.37. The consensus estimate for Webster Financial’s current full-year earnings is $5.90 per share. Wedbush also issued estimates for Webster Financial’s FY2024 earnings at $5.90 EPS, Q1 2025 earnings at $1.54 EPS, Q2 2025 earnings at $1.60 EPS, Q3 2025 earnings at $1.70 EPS and Q4 2025 earnings at $1.76 EPS.

Webster Financial (NYSE:WBS) last issued its earnings results on Tuesday, January 23rd. The financial services provider reported $1.46 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.02). Webster Financial had a return on equity of 13.05% and a net margin of 22.01%. The firm had revenue of $996.96 million during the quarter, compared to analysts’ expectations of $674.82 million. During the same quarter in the prior year, the company posted $1.60 earnings per share.

WBS has been the subject of several other reports. StockNews.com lowered Webster Financial from a “hold” rating to a “sell” rating in a research report on Friday, March 8th. Piper Sandler boosted their price target on Webster Financial from $53.00 to $60.00 and gave the stock an “overweight” rating in a research report on Friday, December 15th. Royal Bank of Canada reissued an “outperform” rating and issued a $59.00 price target on shares of Webster Financial in a research report on Wednesday, January 24th. Barclays assumed coverage on Webster Financial in a research report on Friday, March 8th. They set an “overweight” rating and a $70.00 target price on the stock. Finally, Bank of America assumed coverage on Webster Financial in a report on Thursday, January 11th. They issued a “buy” rating and a $60.00 price objective on the stock. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $57.31.

Webster Financial Price Performance

Shares of WBS stock opened at $50.81 on Thursday. Webster Financial has a twelve month low of $31.03 and a twelve month high of $53.39. The stock has a market capitalization of $8.73 billion, a price-to-earnings ratio of 10.39, a P/E/G ratio of 0.34 and a beta of 1.32. The stock has a fifty day simple moving average of $48.51 and a two-hundred day simple moving average of $45.51. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.41.

Hedge Funds Weigh In On Webster Financial

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of Webster Financial by 88.3% in the first quarter. Vanguard Group Inc. now owns 17,401,872 shares of the financial services provider’s stock valued at $976,594,000 after purchasing an additional 8,161,424 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Webster Financial by 219.4% in the first quarter. Invesco Ltd. now owns 4,782,300 shares of the financial services provider’s stock valued at $268,381,000 after purchasing an additional 3,285,002 shares during the last quarter. State Street Corp increased its holdings in shares of Webster Financial by 68.8% in the first quarter. State Street Corp now owns 7,511,290 shares of the financial services provider’s stock valued at $421,534,000 after purchasing an additional 3,061,831 shares during the last quarter. Norges Bank acquired a new stake in shares of Webster Financial in the fourth quarter valued at approximately $97,217,000. Finally, Point72 Asset Management L.P. increased its holdings in shares of Webster Financial by 2,063.7% in the second quarter. Point72 Asset Management L.P. now owns 1,888,900 shares of the financial services provider’s stock valued at $71,306,000 after purchasing an additional 1,801,600 shares during the last quarter. Institutional investors and hedge funds own 85.58% of the company’s stock.

Insiders Place Their Bets

In other Webster Financial news, insider Jack L. Kopnisky sold 5,000 shares of the stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $50.18, for a total transaction of $250,900.00. Following the transaction, the insider now owns 310,041 shares in the company, valued at $15,557,857.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other Webster Financial news, insider Jack L. Kopnisky sold 5,000 shares of the stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $50.18, for a total transaction of $250,900.00. Following the completion of the transaction, the insider now owns 310,041 shares of the company’s stock, valued at $15,557,857.38. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Daniel Bley sold 2,000 shares of the stock in a transaction that occurred on Thursday, February 29th. The shares were sold at an average price of $47.60, for a total value of $95,200.00. Following the transaction, the insider now directly owns 27,955 shares of the company’s stock, valued at approximately $1,330,658. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 34,941 shares of company stock worth $1,796,482. 0.88% of the stock is owned by corporate insiders.

Webster Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 16th. Shareholders of record on Monday, February 5th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, February 2nd. This represents a $1.60 dividend on an annualized basis and a yield of 3.15%. Webster Financial’s dividend payout ratio is currently 32.72%.

Webster Financial Company Profile

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking.